SL repayments: borrower within PAYE: what to do when employment ceases
Employer action - Borrower ceases employment
When an employee ceases employment the employer must consider whether to make an entry in the box headed ‘Enter Y if Student Loan deduction is due to be made’ on form P45.
The employer should enter a ‘Y’ in the box ‘Enter Y if Student Loan deduction is due to be made’ if
- A Start Notice has been received from HMRC with a start date in the current tax year
- The employer has previously received a form P45 with a ‘Y’ in the box headed ‘Student Loan Deductions to continue’ And
- No Stop Notice has been received from HMRC
In all other circumstances no entry should be made.
|1.||The above guidance should be followed regardless of whether deductions have actually been made, perhaps because the employee’s earnings did not exceed the threshold|
|2.||The amount of any Student Loan deductions should not be shown on form P45|