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HMRC internal manual

Collection of Student Loans Manual

HM Revenue & Customs
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FAQs: borrowers questions and answers: making payments through my employer: should I tell my employer to start deducting?

Suggested answer

Your employer will normally start making deductions when instructed to do so by HMRC. However, if you start employment and you do not have a form P45, you will go through a ‘starter checklist’ procedure and you should at that point tell your new employer if you are in the process of repaying an Income Contingent student loan on plan 1 or plan 2. He will then be able to start making deductions on your next pay-day.

If you

  • do not know which plan type you are repaying you can contact the Student Loans Company (0300 100 0611)
  • are repaying plan 1 and plan 2 at the same time then your employer will use plan 1.

HMRC action

If the taxpayer has been in employment for some time, check that we have details of the employment on our PAYE system. If not, make arrangements to set up the details. If the employment is on our PAYE system, telephone East Kilbride Student Loans Unit, they can check whether a Start notice has been issued and take action as appropriate.

Note: If the borrower requires further information he / she should be asked to contact the Student Loans Company on 0300 100 0611.