HMRC Employer CD-ROM - Calculating student loan deductions using the P11 Calculator

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1 May 2008

HMRC has issued a warning to employers using the P11 Calculator on its latest CD-ROM concerning the calculation of student loan deductions. The calculations are using the employee's gross pay for tax instead of gross pay for NICs and, where these are different, the student loan deduction will be lower than it should be. The situation arises where the employer is reducing the gross pay for tax under the net pay arrangement, e.g. in respect of contributions to an occupational pension scheme or to a payroll giving scheme.

HMRC believes that few employers using the P11 Calculator will be affected by the problem and, if the situation exists, employers should contact the Online Services Helpdesk for further advice on 0845 60 55 999.

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