Refunding Student Loans

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:

  1. 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.
  2. Any Period Reports will not show the refund as affecting HMRC figure – you will need to manually adjust these.
  3. The amendment can be reported to the HMRC by changing the value in Student Loan Repayment in HR Record BalancesStatutory Balances.
  4. 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.
  5. Any Period Reports will not show the refund as affecting HMRC figures.