CSLM17070 - SL repayments: borrower within PAYE: special situations
Source: gov.uk (2025-04-06)


Specific situations may arise which could cause problems for employers in ascertaining
- Whether or not Student and or Postgraduate Loan deductions are applicable
And / or
- What earnings period to use for calculating Studentand or Postgraduate Loan deductions
The general principle in deciding how to treat income for Student and or Postgraduate Loan deduction purposes is to follow the normal rules for NICs. The Employers Guide CWG2 gives the employer comprehensive instructions on operating NIC deductions.

Payments made after the death of an employee

Any payments made for a period after an employee has died should not be taken into account for calculating Student and or Postgraduate Loan deductions.However, for any earnings relating prior to the date of death, eg unpaid wages, student and or postgraduate loan deductions should still be made as normal.

Payments made to borrower after employment ceases

If a payment is made to a borrower after the borrower has ceased employment, the Student and or Postgraduate Loan deductions should be calculated on the same amount, and for the same earnings period as for NICs.

Employees with more than one job

An employer should disregard, for Student and or Postgraduate Loan purposes, any earnings from another employer. Each employment should be treated seperately applying the threshold to the earnings in each employment. However, if a borrower has more than one job with the same employer, follow the NIC aggregation rules.

Employees not paid at regular intervals but who can be treated as paid at regular intervals

If a payment is not made at regular intervals, there may be a regular pattern covering the period for which each payment is made. In such cases, that regular pattern will determine the earnings period for NICs purposes, and should be followed for Student and or Postgraduate Loan purposes.

More than one set of regular payments

For NICs purposes, if an employee is paid more than one set of regular payments, all payments should be added together and NICs calculated using the shorter of the regular intervals between payments. The same rule applies for Student and or Postgraduate Loan deductions.However, special rules apply where the earnings are derived from different types of employment, for example, contracted out and not contracted out.

Employees not paid on their usual pay day

If an employee is paid on a day other than the usual pay day, for example, if the pay day has been brought forward because of a Bank Holiday, or if two weeks wages are paid together
- If the actual date of payment and the usual pay day are in the same tax year
- The early or late payment should be treated as if it had been made at the usual time
- If the actual date of payment and the usual pay day are in the different tax years
- Student and or Postgraduate Loan deductions should be calculated on the early or late payment separately from any other payments made in that tax year, using the earnings threshold and rate of deduction appropriate to the year in which the payment is actually made
See the examples in the Employers Guide CWG2.

Holiday Pay

There are various methods of calculating NICs on holiday pay depending upon the particular circumstances and which method is more convenient for the employer.Whichever method of calculation is used for NICs purposes, the same method must be applied to Student and or Postgraduate Loans.