Loans. How do I set up postgraduate loan repayments?
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"Loans. How do I set up postgraduate loan repayments?"
Like student loans, postgraduate loans are a deduction that's automatically taken off a person's pay, and then marked for onward payment to HMRC.
There's two ways to set up a person's postgraduate loan repayments:
- First, when the postgraduate loan repayments are set up by you manually.
- Or second, when it's automatically set up by HMRC through an: "HMRC notice"
Before starting, it's important to note that postgraduate loan repayments only apply to the employment types of: "Employees" and: "Zero-hour workers"
The first way to add a postgraduate loan repayment ... is manually:
- First, select the person who's getting the postgraduate loan repayment added on: MenuPeople
- And then go to: PayPay settings
- And scroll down to the "Repeat payables ... personal" heading.
- Then tap: New repeat payable
- Next, select: Postgraduate loan ... repayment
- For 99% of postgraduate loan repayments, all the defaults are now already correct.
- Including the "Payee", which is the bank account that the postgraduate loan repayments are paid to. The payee is automatically set to HMRC and can't be changed.
- You can now tap off, and you'll see that the person's postgraduate loan repayments are all set up.
- If you're curious to see how the postgraduate loan repayments look on the person's payslip, hover your mouse over the postgraduate loan, and tap the "See on payslip" button:
- You'll now see a payslip amount showing under: "Post-tax withholdings"
- And if you hover your mouse over the amount, you'll see a breakdown of the postgraduate loan repayment calculation.
- Also, if a person already has student loan repayments, it's quite normal for them to also have postgraduate loan repayments side-by-side. Having two loans is quite common if the person's gone on to do postgraduate studies.
- And finally, if you scroll up and tap the "Next payslip" circle, you'll see the same amount repeated on every payday, as expected.
The second way to add a postgraduate loan repayment ... is when it's automatically set up, or modified, by HMRC through an "HMRC notice":
- First, to see the "HMRC notices", select the pay batch on: MenuPay batches
- Then tap: FormsHMRC notices
- You'll now see all your pay batch's HMRC notices from over the last year.
- Examples of "HMRC notice" actions include: starting or stopping a postgraduate loan repayment, or modifying the postgraduate loan repayment type.
- To see an HMRC notice's full message, tap the blue "See event" button: (at the start of any row)
- As long as the "HMRC notice" can be matched to a person, the action in the notice is auto-scheduled to be carried out by 1st Money.
- So in most cases: "There's no action required from you."
- Also, for every auto-scheduled change that involves a person, two copies of an HMRC notice are emailed out.
- And finally, one is emailed to the person involved, and the other to the pay batch's payday admin, so everyone knows what's happened.
Keep in mind that:
- If the option for postgraduate loan repayments doesn't show up in the list, check that the person's employment type is one of: "Employee" and: "Zero-hour workers"
- Which are the only two employment types that're eligible for postgraduate loans.
- Also, postgraduate loans can only be set up manually because postgraduate loans don't automatically show up as an option during onboarding.
To learn more:
- About "HMRC notices", watch the video on: HMRC notices
- To learn about deleting a postgraduate loan repayment, watch the video on: Deleting a repeat payable
And that's it! That's all you need to do to set up a postgraduate loan repayment!
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