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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 leaves: what do I do when a borrower leaves?

Suggested answer

Enter ‘Y’ in the Student Loans box on form P45 if

  • You have received instructions from HMRC to start making deductions, (a Start Notice or a form P45 with a ‘Y’ in the Student Loans box)


  • You have not received a Stop Notice

It doesn’t matter whether you have actually made any Student Loan deductions.

The new employer will then continue making deductions where appropriate.

If you have received a Stop Notice leave the Student Loans box blank on form P45.

But please remember not to send P45 part 1 to HMRC. This is no longer needed following the introduction of RTI

HMRC action



1. If the date on the Start Notice is not in the current tax year, the box on the P45 should be left blank. The computer will then issue a Start Notice to the new employer if applicable
2. The ‘Y’ in the Student Loan box on form P45 does not indicate that deductions have been made. It tells the new employer that instructions have been given to commence making deductions