Student and postgraduate loan generic notification service messages to employers
As part of the April 2023 Employer bulletin, the HMRC reminds employers that they send student and postgraduate loan generic notification service messages to employers as a reminder:
- to start taking student or postgraduate loan deductions, or both
- to stop taking student or postgraduate loan deductions, or both
- to use the correct plan type HMRC has provided
- not to take student or postgraduate loan deductions, or both for an employee who is subject to the off payroll working rules, or only has an occupational pension rather than a salary
Why is a different matter rather than issue the correct electronic exchange message SL1, SL2, PGL1 and PGL2 which are actual instruction to employers and often handled by payroll software automatically.
If the employer does not have an employer PAYE online account, then these GNS messages will not be seen nor actioned. And software that reads and applies the actual student loan and post graduate loan instructions are unlikely to read or doing anything with a GNS message!
HMRC claim that it is important that employers check their HMRC Online services for generic notification service messages, as this impacts your employee’s student and postgraduate loan repayments.
If action has not been taken from the online service messages, then HMRC indicate they may contact the employer either by telephone or post.
For more information about generic notification service messages Issue by HMRC see student loan and postgraduate loan repayment guidance for employers.
Comment
The use of GNS messages for student loan deductions is a contradiction. There are specific instruction messages that are handled by good software automatically that should be used to change or correct, so why are these not being used – suggest cost. So the free format GNS was inappropriately used instead!
So HMRC, follow your own official process and make life easier for employers.
- to start taking student or postgraduate loan deductions, or both – why not issue the proper instruction using SL1 and PGL1, not a GNS.
- to stop taking student or postgraduate loan deductions, or both – why not issue the correct instruction SL2 and PGL2 which is designed for the job.
- to use the correct plan type HMRC has provided – why not issue the correct plan on a SL1 instruction which is already the approved means of changing the plan type and ending the prior.
- not to take student or postgraduate loan deductions, or both for an employee who is subject to the off payroll working rules, or only has an occupational pension rather than a salary- again why not just issue the relevant SL2 and PGL2 message which is designed to apply this type of activity.
It’s time HMRC stopped these workaround activities to save them development costs, yet burden employers with manual activity, and operate the electronic exchange solutions correctly.
PAYadvice.UK 23/4/2023
