On 1 April 2019, HMRC published guidance for employers on how to manually calculate income tax and NICs arising on the 2019 loan charge.
The guidance is intended to assist employers whose payroll software is not able to perform the calculations automatically.
The guidance indicates that employers should put the loan charge through as arising on 5 April 2019, in the final pay period for 2019. Different procedures apply depending on whether the employee remains in employment or a P45 has been issued. The guidance contains detailed instructions about calculating the income tax and NICs due. It also contains information on the interaction between the 2019 loan charge and student loan deductions, earlier tax year updates and the apprenticeship levy.
