Student Loans - Important Changes to Start and Stop Notices

The procedure for starting and stopping Student Loan deductions is to change from 6 April 2008.

At the moment you are required to start Student Loan deductions on the first pay day falling 42 days or more after the date of issue shown on the Start Notice form SL1. You must also stop deductions on the first pay day falling 42 days or more after the date of issue of the Stop Notice, form SL2.

From 6 April 2008 the law is changing and the 42 day lead-time is being removed.

From this date, employers must start Student loan deductions on the first available pay day after the SL1 start date, and stop deductions on the first available pay day after the SL2 stop date.

By “first available pay day” we mean the first pay day on which it is actually possible to apply that notice.

Example

If a start or a stop notice was received before the next scheduled pay day but after an automated or clerical payroll run had been completed, you would not be expected to re-run that payroll. The change should be included in the next payroll run.