Stop a student loan deduction

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

How to stop the deduction

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

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

Select Pay Puns from the menu bar.
Select Process Pay Run for the selected pay cycle.
Confirm the pay date and select Next.
Deal with any absences and select Next.
Select the relevant employee and select the X button next to the Student loan deduction.
Complete the rest of the pay run.

You’ll need to edit the previous pay run and remove the deduction. The FPS will include these changes to inform HMRC.

You can repay the student loan taken in error through payroll.

If the changes stretch over a previous Payroll Year End, 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.