Article 3 of 14 — Training Notes

Enter a student loan deduction in Accord Payroll

How to activate a student loan deduction on an employee's record
How Accord Payroll calculates the deduction automatically
How to stop a student loan deduction

Contents

Introduction
Enable a student loan deduction
Stop a student loan deduction

Introduction

When an employee is required to repay a student loan, you enable the deduction on their record using the Costs/Switches tab. Accord Payroll calculates the correct deduction automatically each period in line with HMRC's thresholds and rates. The amount is included in the P32 Yearly Totals report and printed on the employee's P60 and P45.

Make sure you select the correct loan type — Plan 1, Plan 2, Plan 4, or Postgraduate Loan — as each has different repayment thresholds.

Enable a student loan deduction

Select the employee using the Employee Code field or drop-down.
Click the Costs/Switches tab.
Locate Student Loan Repayment (Switches 12) and select the correct loan type from the list.
Click Save to save the change, then click Query to run a payroll query. The student loan deduction will be calculated automatically.

Note: The student loan deduction is added to the PAYE and NIC liability due from your company for that tax month and will appear on the P32 Yearly Totals report. It is also printed on the employee's P60, P45, and P35 Continuation Sheet.

Stop a student loan deduction

To stop deducting student loan repayments — for example, when HMRC notifies you that the loan has been repaid — remove the student loan type from the Costs/Switches tab and save the change. The deduction will not be applied from the next payroll run.