You now have a choice to select the Student Loan payroll category to automatically calculate the amount or enter the amount manually. This feature is available starting from the 2014/15 payroll year.

If the option to Calculate Student Loan Deduction is selected, the amount will be calculated from the employee’s gross pay. The calculation of the threshold amount is based on the employee’s pay frequency. The previous user entered amount in the Recurring Pay details for each employee with now display <calculated> but the history of the previous payments will remain.

If the option User Entered Amount is selected, then the deduction amount on the paycheque will be left blank, allowing you to manually enter the amount when processing payroll. If the amount entered has pence, the amount will automatically be rounded down to the nearest pound to meet HMRC reporting and submission requirements.