Further to their announcement on 14 August advising employers who are not paying an occupational pension to leave the Annual Amount of Occupational Pension field blank and not enter 0.00 when completing their Full Payment Submission (FPS), HMRC have now explained the matter further.

HMRC are now explaining that entering 0.00 in this field sets the occupational pension indicator on their records incorrectly. It has a knock-on impact for employees with student loan deductions, as it prompts an automated notification to the Student Loan Company from HMRC advising that an occupational pension being paid. This may result in the cessation of any further student loan deductions.

More details are available from HMRC HERE