Collection of
Student Loans (CSL) 
Use
Student loan repayment functionality is made available in Release 4.6C, enabling you to record and deduct loan repayments as specified by the Inland Revenue. The new functionality performs the following:
- Automates deductions of student loan repayments in line with statutory legislation
- Calculates the loan amounts according to statutory requirements
- Calculates the amounts to be paid to the collector of taxes and reports the totals deducted per tax year on the relevant legislation forms, ie. P60, P35, P14, etc.
The Court Orders/Student Loans (0070) infotype has been enhanced to allow you to record student loan repayments. When you receive a notification to start student loan repayments for a specific employee, a Court Orders/Student Loans (infotype 0070) record needs to be created with the new subtype available CSL Collection Student Loan . Then enter the start and end date of the CSL and record the source of the notification and the date on which it was received.
The system performs priority sequencing of court orders and student loan repayments. Community Charge AEOs (Attachment of Earnings Orders) and Council Tax AEOs take priority over student loan repayments.
The system calculates the loan deduction for an employee with reference to the thresholds and percentage deduction rates set by the Inland Revenue. A deduction rate of 9% has already been set for 2000/01. This is contained in table T511K in constant CSLRT (Collection of Student Loans). Table T511P contains the annual threshold in constant CSLRT (Collection of Student Loans), which has been set at £10,000 for 2000/01
Note
The constants will be updated each year as appropriate to reflect the new rates and thresholds set by the Inland Revenue.
If the employee's earnings are above the specified threshold in any pay period, then a repayment is made. If they fall below, however, then no repayment is made in such a period, nor do arrears accrue for the periods where repayments are not made. The system will indicate when an employee has a Student Loans (infotype 0070) record but a deduction is not made because the employee's earnings are below the CSL threshold.
An employee's student loan deduction is shown by the new wage type /CSL. In retro situations, the wage type /CSD shows the student loan amount which should have been paid. However, this arrears amount is not allowed to exceed the total student loan deduction in the current period.
CSL deductions are shown on the employee's payslip. Employers will be required to pass the CSL to the Collector of Taxes, together with the tax and NIC remittance. The end of year forms P14, P16, P35, P60, and magnetic media will therefore be modified to reflect the CSL deductions.