Student loan deductions & Class 1 NIC's

Student loan and nic's

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I have an employee of a payroll who pays tax under PAYE but is exempt from nic's as he's an Elim Pentecostal Minister of Religion.  I've received notification to start deducting student loan repayments but the software (Iris Bureau) won't calculate them even though he's over the threshold for paying them.  Is it because he doesn't pay nics? 

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Tom McClelland
By TomMcClelland
19th Jul 2016 14:10

NI Earnings are used as the figure for calculation of student loan repayment. In this instance it would be important to pay the employee using a code which is considered both taxable and NI Earnings, then use an NI Table such as "X" to indicate the NI payment exemption.

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Replying to TomMcClelland:
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By mbee1
19th Jul 2016 15:57

The salary is down as taxable and NIable but then I have shown the table as X. No ees or ers which is correct. If there is no niable earnings (which there aren't) I'm assuming no SL deductions.

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Replying to mbee1:
Tom McClelland
By TomMcClelland
19th Jul 2016 16:30

mbee1 wrote:

The salary is down as taxable and NIable but then I have shown the table as X. No ees or ers which is correct. If there is no niable earnings (which there aren't) I'm assuming no SL deductions.

I've always understand table X to be an exemption from deductions, not an exemption from earnings... Otherwise all manner of things would stop working; eg the employee wouldn't be entitled to SSP or SMP. The case of a normal working age UK employee being table X is sufficiently rare that I suppose I might be wrong, however.

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RLI
By lionofludesch
19th Jul 2016 18:02

Table C was the normal one for no deductions. Employer's contributions only. Used for old gimmers and, at one time, folk who earned over the UEL on one job but had another.

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Replying to lionofludesch:
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By mbee1
19th Jul 2016 19:36

But there aren't any employers contributions either in this case. It's very unusual. I may have to ring the Elim Church HQ and see how they deal with Ministers paid by the national church.

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