2020 Student Loan guidance updated to include Scottish Plan 4 and Off-Payroll working references

Student loan and postgraduate loan repayment guidance for employers has been updated 23rd February 2021.

Guidance has been updated to include information if you are operating off-payroll and new Plan type 4. Although this is still the 6th April 2020 edition, so further changes expected.

Scottish Plan type 4

Your employee may be liable to repay a PGL at the same time as a Plan 1, Plan 2 or Plan 4.

Off-Payroll workers

If you’re operating off-payroll you are not responsible for deducting student or postgraduate loan repayments for workers engaged through their own companies. The worker will account for student loan obligations in their own tax return.


The guidance goes to great lengths to cover Generic Notification messages (GNS). These are free text messages that may be sent to an employer, and maybe received if they have PAYE online. Why! They make no sense.

There are electronic instructions SL1, SL2, PGL1 and PGL2 which systems will handle automatically and are for the specific purpose of starting and ending student and postgraduate deductions. So why GNS? Computers are not going to read text messages meant for human reading, they have no basis in law and are a waste of time.

PAYadvice.UK 23/2/2021

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