A. This is their first job since last 6 April and they have not been receiving taxable Jobseeker's Allowance, Employment and Support Allowance, taxable Incapacity Benefit, state pension or occupational pension. B. This is their only job, but since last 6 April they have had another job, or have received taxable Jobseeker's Allowance, Employment and Support Allowance or taxable Incapacity Benefit. They do not receive state or occupational pension. C. They have another job or receive a state or occupational pension. You must keep a written record of their answers and report this information to HMRC on your FPS. PAYE Record Keeping Student loan repayments You must also ask your new employee to confirm if they left a course of UK Higher Education before last 6 April and received their first student loan installment on or after 1 September 1998. You also need to find out if they have not fully repaid their student loan (but you don't need to know about loans being repaid by agreement with the UK Student Loans Company by monthly Direct Debit from a bank or building society account). If your new employee says 'yes' to the student loan question, you should start making student loan deductions from their pay. So the crux of the matter really is that employers should utilise the P46 but bear in mind that when the form is phased out they must ensure that they obtain an employee declaration in writing or email to ensure evidence is obtained if the employee does state that they require Student Loan deductions to be taken. In 2010, The Department for Business, Innovation & Skills (BIS) announced that new loans for Higher Education would be introduced in England from 2012/13 and that these loans would have a higher income threshold (£21,000). These new loans are now being introduced in England and Wales from 2012/13, and loans with the same repayment terms will be introduced from 2013/14 for Further Education courses in England. The new Higher Education and Further Education loans are to be collected through the tax system, along with existing loans with the £15,795 threshold (as uprated), that have been issued nationally until this year and will continue to be issued by Scotland and Northern Ireland going forward. BIS are considering potential options for employers to know which threshold to apply to borrowers from April 2016, when they change jobs whilst repaying student loans and keeping the burden to a minimum. The Policy team have created a short survey which outlines the options an employer could use to determine the correct threshold to apply in calculating the student loan deductions to make for employees who are student loan borrowers. We would be very grateful if you could spare 10 minutes to complete this survey (closing date 25 October 2012). Thank you in advance for your input. The intention is that repayment processes will ensure that the threshold is notified to HMRC when a borrower is due to enter repayment. CIPP POLICY SURVEY – STUDENT LOANS REFORM PROJECT 3 October 2012 Please spare 10 minutes to help determine the correct threshold to apply in calculating new student loan deductions.
CIPP Policy News Journal
12/04/2013, Page 298 of 362
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