CSLM10014 - FAQs: employers questions and answers: new employee: P45 has a 'Y' in the SL box - t/p has repaid loan

Suggested answer

Continue to make Student Loan and or Postgradaute Loan deductions unless you have received a Stop Notice.

But

Tell your employee to contact the Student Loans Company, (0300 100 0611) to discuss the position. If the loan has been repaid a Stop Notice will be sent to you.

HMRC action

None

Notes:

1.

Stop Notices will normally be issued automatically when the Student Loans Company estimate that the loan will be paid off. This is based on the pattern of previous payments and income. There will obviously be cases where a loan may be paid off before a Stop Notice is issued. If the borrower can provide details of payments made since the last reconciliation of the account was undertaken then a Stop Notice will be issued

2.

The employer should never be told to phone the Student Loans Company. They will deal only with the borrower