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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: commencing the compliance check: student loan deductions start and stop notices

An employer should only commence Student Loan Deductions where

  • a start notice has been received from us or
  • the employee hands the employer a P45 with a ‘Y’ in the box marked ‘Student Loan’.

There are no other circumstances under which an employer is required to start making deductions.

The employer should continue to make deductions until

  • they receive a Stop Notice from HM Revenue & Customs or
  • the employee leaves their employment (in this case they should also enter a ‘Y’ in the appropriate box on the employee’s P45).

There are no other circumstances where the employer should cease to make deductions. For example, the employee may claim the loan has been repaid in full. The employer should not cease making deductions on the word of the employee. The employee should contact the Student Loan Company.

The employer should

  • show SLDs as a separate item on the employee’s payslips
  • record the sum deducted on P11 or equivalent
  • enter deductions on end of year returns (up to and including 2012-13)
  • enter deductions on a Full Payment Submission (from 6 April 2013).