When to stop a student loan
Description

Continue to make student loan deductions from an employee until the employee leaves your employment, or HMRC send you one of the following:

  • A form SL2 Stop Notification either by post or electronically
  • If you need to stop making deductions quickly, HMRC can request you to stop by phone or letter
  • If a teacher gives you a letter from the Student Loans Company, when they've been accepted on the Repayment of Teachers' Loan scheme
Cause
Resolution

Stop a Student loan

Sage 50 Payroll automatically stops calculating the student loan deduction when you enter an end date. Stop deductions from the first available pay date after you receive the stop notice.

  1. Click Employee then select the required employee.
  2. Click Employee Record then click Employment.
  3. Click Student/Postgraduate Loans.
  4. Under Student Loan, enter the End Date, then click OK.
  5. Click Save then click Close.

If you receive an SL2 notice via the HMRC Mailbox, to apply the notice automatically, click Apply on the Notice of coding.

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