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Student Loan Deductions
Students in higher and further education (including part time study) in the UK
can get government-funded loans to help with their course fees and expenses
while they are studying. The Student Loans Company (SLC) makes the loans and
HM Revenue & Customs (HMRC) collects most repayments.
Students usually start repaying their loans once they have left their course and
their income is more than a certain amount – the threshold. Once an employee’s
income goes above the relevant threshold, you deduct 9 per cent of their income
that is above the threshold. This goes towards repaying their loan.
You can find detailed student loan guidance for employers on the GOV.UK website:
www.gov.uk/guidance/special-rules-for-student-loans
Court orders and child maintenance
A court can order that deductions be made directly from your employee’s pay,
for example because they have incurred a debt or fine or is in arrears with a
Council Tax bill. These are known as Attachment of Earnings Orders (AEO). Since
6 April 2013, the Department for Work and Pensions (DWP) also has the ability to
recover overpaid benefits by deduction from an individual’s earnings. These are
called Direct Earnings Attachments (DEA).
You can find out more about these types of deductions in the ‘Paying wages’
section of our website:
www.disabilitytaxguide.org.uk
page 38 Taking on a personal assistant – a basic guide • Final thoughts
