There is currently no means of entering a Student Loan Refund via the use of a reversal payroll code, in the way that Child Care or Sickness Payments can be reversed.
However, the same effect can be achieved by using the following steps:
- The value deducted as a Student Loan, can be refunded to the employee by means of a value payroll code, which is set not to deduct NI, tax or pension.
- Any Period Reports will not show the refund as affecting HMRC figure – you will need to manually adjust these.
- The amendment can be reported to the HMRC by changing the value in Student Loan Repayment in HR Record > Balances > Statutory Balances.
- The next FPS created will not have a student loan year to date value and so HMRC will set the employee’s value to zero.
- Any Period Reports will not show the refund as affecting HMRC figures.