Once the deduction starts, continue to make postgraduate loan deductions from the employee. Only stop deducting if notified by HMRC.

When to stop taking deductions

There are also different ways you're notified to stop making postgraduate loan deductions:

• HMRC sends you a form PGL2 Stop Notification
• If you need to stop making deductions quickly, HMRC may request you to stop by phone or letter

How to stop the deduction

To stop a postgraduate loan deducting, remove the deduction from the employee in the pay run.

This won't delete the postgraduate loan from the payroll system. It just removes it from the selected employee.

1. Select Summary from the menu bar.
2. Then Process Pay Run for the selected pay cycle.
3. Confirm the pay date and select Next.
4. Deal with any absences and select Next.
5. Select the relevant employee and select the X button next to the Postgraduate loan deduction.
6. Complete the rest of the pay run.

The deduction hasn't stopped or was taken in error

You’ll need to edit any previous pay runs where the deduction should not have been taken. Each FPS adjustment will include these changes to inform HMRC.

For more information, read Make changes to a completed pay run.

Does it affect a previous tax year?

If the changes effect a previous tax year, you must also send a Supplementary FPS.

Do this once you process up to the last period of the affected tax year.

For more information, read Supplementary FPS.