FAQs: employers questions and answers: employee leaves: start notice held but no deductions made and employee is leaving / left
Even though you have not made any 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).
Note: 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