From 6 April 2018, payroll software will be updated to include a new box on the Full Payment Submission (FPS) to inform HMRC of an employee’s student loan plan type. This box will be mandatory for all employees who are in repayment for student loans.
HMRC has warned that those employers who do not include the correct student loan plan type on the FPS for a specific employee will receive a Generic Notification Service (GNS) message to their Pay As You Earn online inbox. This GNS message is a prompt for employers to check and make the correct deductions for future pay periods.
If the next payroll submission doesn’t show the correct plan type HMRC will send a second GNS message. If this is not acted upon, HMRC may contact the employer by telephone.
Student loan plan type information can be found on form SL1, the Starter Checklist, or by asking the employee. If the employee is unsure, they can check their plan type at www.studentloanrepayment.co.uk.
