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HMRC internal manual

Collection of Student Loans Manual

FAQs: employers questions and answers: new employee: the employee has no form P45 but is a borrower

Suggested answer

When gathering routine ‘starter checklist’ information (as an employer must do for all new employees) the employee should be asked if they are in the process of repaying an income contingent student loan.

If the employee is repaying such a loan the employer should update his payroll software which will then make Student Loan deductions from the first available pay-day. If the employer receives a Start Notice from HMRC it can be filed away.

HMRC action



| 1. | The employer should only start making deductions after receipt of | || |   | * A Start Notice | |   | * Information gathered as part of the ‘starter checklist’ process
Or | |   | * A form P45 with a ‘Y’ in the Student Loan box |