CSLM10011 - FAQs: employers questions and answers: new employee: P45 has a 'Y' in the box - what do I do?
Suggested answer
Start making Student Loan and or Postgraduate Loan (PGL) deductions from the next available pay-day using the correct Loan and or plan type - Plan 1, Plan 2, Plan 4 or PGL.
The employee will tell you which loan and or plan type they are on. If they do not know what loan and or plan type they have, the employee can log into their online student loan account or access gov.uk website for more information.
You can use Plan 1 as a default plan type if needed but this cannot be used for PGL.
Plan 1, Plan 2 or Plan 4 can be collected at the same time as PGL.
Commercial payroll software will enable you to deduct the correct amount on each pay-day.
You can find more information about payroll software or starting student loan deductions on the gov.uk website.