FAQs: employers questions and answers: new employee: P45 has a 'Y' in the box - what do I do?
Start making Student Loan deductions from the next available pay-day using the correct plan type - Plan 1 or Plan 2. The employee will tell you which plan type they are on. If the employee does not know their plan type then they can contact the Student Loans Company for more information. You can use Plan 1 as a default plan type if needed.
Commercial payroll software will enable you to deduct the correct amount on each pay-day.
If you want further information, you can refer to our website .
|1.||Following receipt of a form P45 with a ‘Y’ in the Student Loan box deductions should commence from the next available pay-day using the correct plan type.|
|2.||Where the employee has told the employer as part of the ‘Starter Checklist’ gathering exercise that they are a borrower, the employer should also start making deductions from the next available pay day using the correct plan type. If they also receive a Start Notice SL1, no action needs to be taken on this Start Notice, which can be filed away.|