Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

can’t, the payment will be credited against the workers Student Loan Company account. Meanwhile the worker should continue to account for student loan repayments via their Self-Assessment Tax Return.

Where an SL1 has been issued, and the public authority (or the agency serving the authority) have been able to prevent deductions being made, they will begin to receive, from HMRC, reminder emails via the Generic Notification Service (GNS) which serves as a prompt for employers to begin making deductions for student loans where none are being reported on the FPS. This process, which began in April 2016, includes a first reminder, then if no action is returned via the next FPS, a second email prompt is issued, which is followed by a telephone call to enquire why no action has been taken. HMRC, who are unable to identify a worker, as opposed to an employee from the FPS, are unable to switch off this service for the 2017-18 tax year. It is likely that guidance will be published or cascaded that confirms the final stance being taken until HMRC systems can be amended to enable the employer to highlight on the FPS where an individual is caught by IR35. This is the call being made from stakeholders at the Collection of Student Loans Consultation Forum and through other relevant forums.