PAYE issues with student loans

Linda Pullan head of Payroll Alliance would like to thank the readers of Taxation for their comments regarding the problems that agents experience when dealing with student loans and self assessment returns.

She has forwarded the comments to the chair of the Student Loan Panel for consideration.

Some of the feedback highlighted the problem of individuals overpaying their student loan. Readers therefore may be interested to learn that if a borrower has only 23 months left to repay their student loan they can opt to pay this by direct debit and thus avoid overpaying the loan.

They need to contact the Student Loan Company to make arrangements and it will issue a stop notice so that deductions via the payroll cease.

There are leaflets which provide further information on student loans that may be of interest to readers...