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HMRC internal manual

Collection of Student Loans Manual

FAQs: employers questions and answers: employee leaves: t/p is leaving before start date on start notice

Suggested answer

Even though you have not yet started to make Student Loan deductions you should enter a ‘Y’ in the Student Loan box on the form P45. (Unless you have already received a Stop Notice).

File away the Start Notice.

HMRC action



1. If the date on the Start Notice is not in the current tax year, the student loan box on the form 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
3. If the employee leaves before the date of issue of the SL1, but the date of leaving is not put on the record until after the date of issue of the SL1, the Student Loan basis will not be displayed for this employment. This is because the Student Loan End Date will be earlier than the Student Loan Start Date