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HMRC internal manual

Collection of Student Loans Manual

HM Revenue & Customs
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FAQs: employers questions and answers: employee bankrupt - do I still make deductions?

Suggested answer

Yes. You should continue to make deductions if the borrower’s income exceeds thethreshold until you receive a Stop Notice (SL2).

HMRC action


Note: This query assumes that the employer has told you that the employee is bankrupt. This is not information you should divulge to the employer or any other third party.