CSLM10011 - FAQs: employers questions and answers: P45 / P46 has a 'Y' in the box - what do I do?
Suggested answer
Start making Student Loan deductions from the next pay-day.
The HMRC Basic PAYE Tools (available at www.hmrc.gov.uk/paye/tools/basic-paye-tools.htm) or approved payroll software will enable you to deduct the correct amount on each pay-day.
If you want further information, you can refer to the Employer Helpbook - Collection of Student Loans - An employer’s guide to the collection of student loans (E17). This is available to download from the HMRC website at www.hmrc.gov.uk/paye/forms-publications.htm.
HMRC action
None.
Notes:
| 1. | Following receipt of a form P45 with a 'Y' in the Student Loan box, or where the employee has ticked box D (Student Loans) of a P46, deductions should commence from the next pay-day. |
| 2. | Where the employee has ticked the Student Loans box of a P46, the employer will also receive a Start Notice SL1. No action needs to be taken on this Start Notice, which can be filed. |
