Employer Student Loan / Postgraduate Loan Stop Prompts

22 August 2019

From September 2019, HMRC will send Generic Notification Service (GNS) messages to employers who continue to take Student Loan or Postgraduate Loan (PGL) deductions from their employee after a stop notice (SL2 or PGL2) has been issued.

 

HMRC is introducing this change to help:

 

  • increase employer compliance with stop notifications and
  • reduce the amount that stopped borrowers overpay by.

The GNS messages:

 

  • are a prompt for employers to stop taking deductions from the next available pay day
  • will work in the same way as other GNS Student Loan / PGL prompts
  • will be delivered to employers PAYE online accounts.

Employers who continue to take deductions will receive a maximum of 2 GNS message prompts per tax year for each employee and loan type they incorrectly deduct under. 

 

There will be 8 potential notices depending on whether the employee was a Student Loan borrower, a PGL borrower or they never had a loan.  The GNS messages will be titled:

 

  1. Student Loan stopped borrower Prompt 1
  2. Student Loan stopped borrower Prompt 2
  3. Postgraduate Loan stopped borrower Prompt 1
  4. Postgraduate Loan stopped borrower Prompt 2
  5. Student Loan non borrower Prompt 1
  6. Student Loan non borrower Prompt 2
  7. Postgraduate Loan non borrower Prompt 1
  8. Postgraduate Loan non borrower Prompt 2
 

To help increase awareness of this change, HMRC will add an update to guidance ‘Student Loan and Postgraduate Loan repayments: guidance for employers’, and also include an article in the October Employer Bulletin and Agent Update.