Student Loan Notices
HMRC has started issuing Generic Notification Service (GNS) messages when an employee still has student loan deductions taken despite a stop notice. The GNS messages are a reminder to stop deductions for the next available pay day, and are available via online PAYE accounts.
There are eight possible GNS messages, although these can be considered as prompt 1 and prompt2, then student loan or post-graduate loan and borrower or non-borrower. There is no practical difference with the messages, they all are a reminder to stop the appropriate loan deductions.
These GNS messages follow on from the earlier announcement by HMRC that they will be sharing information with the Student Loans Company (SLC) on a weekly basis. This should mean a faster response once a student loan is paid off, or when an employee incorrectly completes a new starter form for instance.
However, these GNS messages are reminders so no action is required if the appropriate student loan has already been stopped. So you should not need to contact HMRC if you have received the reminder despite stopping the loan deduction.
Student Loan thresholds
The thresholds are changing for student loans from April 2020:
Plan 1 £19 390 (currently £18935)
Plan 2 £26 575 (currently £25725)
The student loan deductions are at 9% above these thresholds.
The post-graduate loan threshold will remain the same from April at £21 000, with deductions at 6% above this.
Although there is a general election looming, we imagine the rates will go through as planned. We will be monitoring announcements from HMRC as they come through however.
For more information about student loan deductions see here.