CSLM10014 – FAQs: employers questions and answers: P45 has a 'Y' in the SL box - t/p has repaid loan


Suggested answer

Continue to make Student Loan deductions unless you have received a Stop Notice.

But

Tell your employee to contact the Student Loans Company, (This text has been withheld because of exemptions in the Freedom of Information Act 2000)to discuss the position. If the loan has been repaid a Stop Notice will be sent to you.

HMRC action

None

Notes:

  1. Information held by the Student Loans Company in respect of repayments made by borrowers is inevitably out of date because, in PAYE cases, they can only be updated when the end of year returns are made
  2. Stop Notices will normally be issued automatically when the Student Loans Company estimate that the loan will be paid off. This is based on the pattern of previous payments and income. There will obviously be cases where a loan may be paid off before a Stop Notice is issued. If the borrower can provide details of payments made since the last reconciliation of the account was undertaken then a Stop Notice will be issued
  3. The employer should never be told to phone the Student Loans Company. They will deal only with the borrower