Students: when an employer goes into liquidation

When an employer’s business goes into liquidation the employer may not send to HM Revenue & Customs (HMRC) the year end return forms P35 and P14 which show details of an individual’s student loan repayments deducted during the financial year.

HMRC needs this information to be able to tell the Students Loans Company (SLC) the amounts that have been deducted from each borrower’s earnings so that the SLC in turn can credit those amounts to their loan accounts.

In these circumstances HMRC will provide details of the student loan repayments to the Students Loan Company SLC based on information in the borrowers form P60 and/or payslips evidence which the borrower will be asked to provide.

If no P60 or payslip evidence is available HMRC may ask the borrower to contact the liquidator to extract the relevant student loan repayment information from the employer payroll records. Any formal documentation showing repayment deductions will be considered by way of evidence to help HMRC determine and report any student loan deductions to the Students Loan Company SLC

For more about Students and HMRC in general please visit Payroll Services, Payroll Bureau, Payroll UK, Payroll Solutions, Payroll Outsourcing, Payroll Management