![[UK] Student Loan and Postgraduate Loan Repayment Guidance for Employers](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-African-American-Student-Raisi-306550447_1200x.jpg?v=1569250146)
From April 2019, HMRC introduced More Frequent Data Sharing (MFDS) between them and the Student Loans Company (SLC). Rather than sharing student loan repayment information with them annually, they will send it weekly (or monthly where the employer pays using this frequency). This is intended so that the SLC will have up to date information and will be able to send out stop notices to prevent people overpaying their loans. These are the SL2 and PGL2.
Recent media coverage on the BBC highlighted that overpayments are great, though in fairness this referred to time before the introduction of MFDS. All the while, HMRC and SLC have been looking at ways of improving stop notice compliance, believing that one of the reasons for overpayments could be that employers are not actioning a stop notice when it has been received. Their solution is not to reissue the stop notice but to issue a Generic Service Notification (GNS) message. This will go to the employer as a prompt that the student loan stop notice has been issued but has not been actioned.
On the 19th of September, HMRC revised their guidance on gov.uk regarding the 3 types of GNS message that may come regarding student loans:
Start GNS
This GNS reminder is confirmation that HMRC has sent or is in the process of sending an SL1 or PGL1 “Start Notice” for the employees shown where:
- The employer submits a Full Payment Submission (FPS) for an employee who has a student loan or PGL deduction due
- The FPS shows a figure of nil
Change GNS
This GNS is where the student loan being deducted is not the plan type that HMRC think it should be. In these instances the employer should look at the SL1 or PGL1 or completed starter checklist for details of the correct student loan plan and loan type to use.
Stop GNS
This is the new one from September 2019. It is a GNS reminder and confirmation that HMRC has sent or is in the process of sending an SL2 or PGL2 “Stop Notice” for the employees shown. This GNS message and the SL2 or PGL2 “Stop Notice” will tell the employer the correct loan or plan type to stop taking deductions from.
Global Payroll Association Comment
The GNS start, change or stop notice is a valid notification from HMRC and employers should act on this. The problem as we see it is that they are free text reminders and not instructions to payroll software that can be imported. And they can only be viewed by employers and agents that have access to the government gateway.
Whilst they are good reminders, that is all they are. If HMRC wanted to ensure that a student loan is started, changed or stopped we believe that it would be better to reissue the SL1 / PGL1 or SL2 / PGL2.
From April 2019, HMRC introduced More Frequent Data Sharing (MFDS) between them and the Student Loans Company (SLC). Rather than sharing student loan repayment information with them annually, they will send it weekly (or monthly where the employer pays using this frequency). This is intended so that the SLC will have up to date information and will be able to send out stop notices to prevent people overpaying their loans. These are the SL2 and PGL2.
Recent media coverage on the BBC highlighted that overpayments are great, though in fairness this referred to time before the introduction of MFDS. All the while, HMRC and SLC have been looking at ways of improving stop notice compliance, believing that one of the reasons for overpayments could be that employers are not actioning a stop notice when it has been received. Their solution is not to reissue the stop notice but to issue a Generic Service Notification (GNS) message. This will go to the employer as a prompt that the student loan stop notice has been issued but has not been actioned.
On the 19th of September, HMRC revised their guidance on gov.uk regarding the 3 types of GNS message that may come regarding student loans:
Start GNS
This GNS reminder is confirmation that HMRC has sent or is in the process of sending an SL1 or PGL1 “Start Notice” for the employees shown where:
- The employer submits a Full Payment Submission (FPS) for an employee who has a student loan or PGL deduction due
- The FPS shows a figure of nil
Change GNS
This GNS is where the student loan being deducted is not the plan type that HMRC think it should be. In these instances the employer should look at the SL1 or PGL1 or completed starter checklist for details of the correct student loan plan and loan type to use.
Stop GNS
This is the new one from September 2019. It is a GNS reminder and confirmation that HMRC has sent or is in the process of sending an SL2 or PGL2 “Stop Notice” for the employees shown. This GNS message and the SL2 or PGL2 “Stop Notice” will tell the employer the correct loan or plan type to stop taking deductions from.
Global Payroll Association Comment
The GNS start, change or stop notice is a valid notification from HMRC and employers should act on this. The problem as we see it is that they are free text reminders and not instructions to payroll software that can be imported. And they can only be viewed by employers and agents that have access to the government gateway.
Whilst they are good reminders, that is all they are. If HMRC wanted to ensure that a student loan is started, changed or stopped we believe that it would be better to reissue the SL1 / PGL1 or SL2 / PGL2.