Student Loans – important changes to start and stop notices
What is changing?
From 6 April 2008 the procedure for starting and stopping student loan deductions has changed.
Up until now you have been 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. And 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 has changed and the 42 day lead-time has been removed.
How does it affect me?
As the Employer, from 6 April 2008 you must start student loan deductions on the first available pay day after the SL1 start date.
Similarly, you must 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 you now receive or have received a start or stop notice before the next scheduled pay day but after an automated or clerical payroll run has been completed, you would not be expected to re-run that payroll. The change should be included in your next payroll run.
How does this fit in with your other responsibilities to start deductions?
You should only start making student loan deductions if:
- we send you form SL1 'Start Notice'
- a new employee gives you form P45 with 'Y' in the 'Continue Student Loan Deductions' box (Box 5)
- a new employee gives you form P46 with a tick in Box D (Student Loans)
We will keep you updated with the changes via our website and through future editions of the Employer Bulletin.
