CSLM17050 – SL repayments: borrower within PAYE: simplified deduction schemes

The rules for making Student Loan deductions are no different for simplified deduction schemes.

The employer should take the following action.

New employee with form P45

If there is a 'Y' in the box 'Continue Student Loan Deductions' on form P45 the employer

• Prepares a P16A and notes the employee is a Student Loan borrower
• Starts making Student Loan deductions

If the box headed 'Continue Student Loan Deductions' is blank the employer

• Takes no action regarding Student Loan deductions

New employee - no form P45

In these circumstances the new employer

• Should follow current procedures regarding form P16A and so on
• Should not start making Student Loan deductions but should always wait for a Start Notice to be received

Employee leaving

In these circumstances

• No form P45 is provided and so no special action is required

And

• The new employer will operate P46 (or P16A) procedures