FAQs: employers questions and answers: new employee: P45 with no 'Y' in the SL box - t/p is a borrower
Do not make any Student Loan deductions, even though your employee has a Student Loan and may have been having repayments deducted by a previous employer.
If the employee is a borrower, a Start Notice will be issued to you when the first monthly Full Payment Summary (FPS) is processed. You should then start making deductions in accordance with the instructions on the Start Notice.
No specific action to take.