Student Loan Deductions - Changes to start and stop notices

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Under changes made to the Education (Student Loans) (Repayment) Regulations 2000 by new Amendment Regulations, the instructions on the SL1 start notices and SL2 stop notices sent to employers by HMRC will change from 6 April 2008.

The Regulations currently state that employers must start and stop making deductions on the dates specified in the notice, which are at least 14 days from the date of issue of the notice for employers with weekly payrolls and at least 42 days from that date in all other cases. The new Amendment Regulations remove the 14-day and the 42-day lead in times. From April 2008, employers are required to

• start making deductions on the first available pay day after the date specified in the start notice, and
  
  
• stop making deductions on the first available pay day after the date specified in the stop notice.

The Amendment Regulations also make it possible for employers to be instructed to stop making deductions in the case of borrowers who have agreed to repay the loan in full via fixed instalments or a lump sum after a certain date. That change is effective from 20 July 2007.

...UK Payroll News - Latest

Further information:
The Education (Student Loans) (Repayment) (Amendment) Regulations 2007 Explanatory Memorandum

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