CSLM17025 | SL repayments: borrower within PAYE: start / stop notices Real Time Information (RTI) and forms P45

There are circumstances in which HMRC may automatically issue a Start Notice, or a Stop Notice, even though a form P45 has been handed in to a new employer. This is because the HMRC computer will compare the Student Loan status of the taxpayer with the information on the first Full Payment submission (FPS) sent by an employer for a new employee.

These situations are summarised below.

Employee is a borrower

If there is a 'Y' in the box headed 'Student Loan Deductions to continue' on form P45

• The new employer asks the employee to complete the starter checklist to establish what loan and or plan type the employee has

• The new employer makes Student and or Postgraduate Loan deductions

• Deductions continue until employer receives a Stop Notice from HMRC

If the box headed 'Student Loan Deductions to continue' on form P45 is blank

• The new employer will not make Student Loan deductions

Note: HMRC automatically issues a Start Notice confirming the start date from which deductions should commence

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Employee is not a borrower

If there is a 'Y' in the box headed 'Student Loan Deductions to continue' on form P45

• The new employer asks the employee to complete the starter checklist to establish what loan and or plan type the employee has

• If the employee declares they do not have a Student and or Postgraduate Loan the employer should contact HMRC

If the box headed 'Student Loan Deductions to continue' on form P45 is blank

• The employer will not make Student Loan deductions