Sort out tax matters when an employee leaves

Taking account of student loan repayments

If you have been using the PAYE (Pay As You Earn) system to collect repayments of student loans from an employee's wages, you will need to take account of these when the employee leaves. If the student loan is continuing to be repaid then you should complete box five on the P45 with a "Y" to indicate that collection of the student loan should continue.

The student loan must continue to be repaid until a stop notice is received by the employer.

Student loan deductions

You calculate and record these deductions using form P11 and a set of special tables. You can download student loan deduction tables from the HM Revenue & Customs website (PDF).

Subjects covered in this guide

• Introduction
• What forms you need to fill in
• Standard payments
• Statutory Maternity, Paternity and Adoption Pay
• Taking account of student loan repayments
• Redundancy payments
• Employment tribunal awards
• Lump sum and non-cash payments

 

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