Employees with two active student loans may experience duplicate deductions from their pay. According to HMRC guidance, employees should only have one repayment deducted at each pay period, regardless of the number of plans they are on.
To resolve this, you need to manually hold one deduction when the employee holds multiple loans. This is because the system doesn't automatically withhold one student loan when two are active, which results in the risk of dual deductions.
To avoid double deductions, place one of the student loans on hold. To do this, follow these steps below in portal.
Click Employee then in the Search Name field, search for the relevant employee.
Highlight the relevant employee, then click View.
Click Deductions then beside the relevant deduction, click the three-dot icon.
Click Edit then turn on the Hold Deduction toggle.
In the Hold Periods field, enter the number of periods for which you wish to maintain the hold.
Click Save.