Payroll · PGL2 stop notice

PGL2 stop notice received? Stop from the right pay date and keep the audit trail.

A postgraduate loan stop notice should not be handled from an employee's verbal request. Payroll needs the HMRC notice, correct loan type, final deduction, software change and FPS evidence.

Direct answer

GOV.UK guidance says employers should stop student or postgraduate loan deductions when HMRC sends an SL2 or PGL2 stop notice, not simply because an employee asks.

HMRC notices, payroll software and GOV.UK guidance control. This page is an operational checklist, not payroll or tax advice.

Source base: GOV.UK stopping loan deductions, student and postgraduate loan guidance for employers and HMRC 2026 student loan payroll specifications.

SEO focus

PGL2 stop notice payroll correction checklist

Help UK payroll teams document postgraduate loan stop notices and reporting evidence. Updated 2026-07-12.

Checklist controls

Check	What to confirm	Proof to retain
Notice	PGL2, issue date, employee and loan type.	HMRC notice.
Stop point	Next available pay date or software rule.	Payroll note.
Final deduction	Last payslip with PGL deduction.	Payslip preview/final.
Software	Old value, new value and date changed.	Audit log.
FPS	Submission after correction.	FPS receipt.

Notice controls

Do not stop on request alone.

HMRC guidance separates employee comments from formal stop notices.

Loan type

PGL2 is specific.

Do not accidentally stop student loan plan deductions if only postgraduate loan stops.

Limit

Leavers and arrears.

Prior-period corrections, leavers and refunds may need HMRC or provider guidance.

PGL2 stop notice packet

Save the PGL2 stop notice and mark employee, issue date and loan type.
Check the next available pay date and whether a final deduction has already been made.
Update payroll software with a dated reason and keep the old value in the audit trail.
Preview payslip and FPS fields before submitting the next payroll.
Archive FPS receipt, payslip evidence and any employee communication note.

FAQ

Can payroll stop PGL because the employee says it is repaid?: GOV.UK says HMRC will tell employers when to stop by sending PGL2.
What if both student loan and PGL exist?: Only stop the deduction covered by the notice unless HMRC guidance says otherwise.
Is this payroll advice?: No. It is an evidence checklist.

Updated 2026-07-12. This page is independent and does not replace official services, professional advice or site-specific rules.