Court Orders/Student Loans (Infotype 0070): Student Loans
Definition
This infotype used with the student loans subtype enables you to record and deduct student loan repayments as specified by the Inland Revenue.
Use
All information used by the payroll to process student loan repayments is stored in the Court Orders/Student Loans (infotype 0070) records.
The system calculates the student loan deduction for an employee with reference to the thresholds and percentage deduction rates set by the Inland Revenue. A deduction rate of 9% (contained in table T511K in constant CSLRT) and an annual threshold of £10,000 (contained in table T511P in constant CSLRT) have been set for 2000/01.
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.
CSL (collection of student loans) deductions are shown on the employee's payslip. Employers are required to pass the CSL to the Collector of Taxes, together with the tax and NIC remittance.
Structure
From and to dates
Enter the start and end dates of the CSL.
Form notification
Record the source of the notification.
Received on
Enter the date on which the CSL 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. CSLs are treated as priority AEOs and are actioned on date if other priority AEOs also exist.