CSLM10212 - FAQs: employers questions and answers: employee leaves: t/p is leaving before start date on start notice

Suggested answer

Even though you have not yet started to make Student Loan and or Postgraduate Loan deductions you should enter a ‘Y’ in the Student Loan box on the form P45. (Unless you have already received a Stop Notice).

File away the Start Notice.

HMRC action

None

Notes:

1.	If the date on the Start Notice is not in the current tax year, the student loan box on the form P45 should be left blank. The computer will then issue a Start Notice to the new employer if applicable
2.	The ‘Y’ in the Student Loan box on form P45 does not indicate that deductions have been made. It tells the new employer that instructions have been given to commence making deductions