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Student loan liabilities adjustment

I've been notified by HMRC that I have been deducting Student Loan Plan type 1 for one of my employees rather than Plan type 2.

They require my next FPS to show the correct YTD figure, zero in this case for CSL Plan Type 1.

I have made a liabilities adjustment  for the employee concerned using a negative figure on the CSL Plan type 1 item so the YTD figure is now correct.

I am unsure though how to reimburse this money to the employee as it should. incur tax, NI, auto enrolement and ironically CSL Plan type 2 deductions, which would be dependant on the date issued.

We will have the money back from HMRC, how do I get it back to the employee and properly accounted for?

1 REPLY 1
QuickBooks Team

Re: Student loan liabilities adjustment

Hi Ken39,

Welcome to the community!

I'm afraid as we here in our tech support team are not qualified payroll professionals, we would not be able to advise exactly how this matter should be dealt with. If you can speak to a payroll specialist/Accountant/ HMRC about the best way to proceed we will be more than happy to help you with how to record this in QuickBooks to reflect their advice.

Thanks!

Chris.