Payroll · postgraduate loan

New starter has a postgraduate loan? Record the payroll evidence before the first FPS.

Postgraduate loan setup needs the employee declaration, P45 or starter checklist, payroll software record, first payslip result and FPS receipt kept together.

Direct answer

GOV.UK says employers should ask new employees if they have a student loan or postgraduate loan and record the answer in payroll software.

HMRC guidance and payroll software rules control. This is an operational checklist, not tax or employment advice.

Source base: GOV.UK new employee student loans, special rules for student loans and starter checklist for PAYE.

SEO focus

postgraduate loan new starter payroll checklist

Help UK payroll teams document postgraduate-loan new-starter setup. Updated 2026-07-07.

Checklist controls

Check	What to confirm	Proof to retain
Employee	P45 supplied or starter checklist completed.	P45/checklist PDF.
Loan	Postgraduate loan answer and any student loan plan.	Declaration fields.
Timing	Study finish date or HMRC notice if relevant.	Employee note or HMRC instruction.
Payroll	Software deduction setup and first payslip output.	Audit screenshot.
FPS	Amounts and indicators reported correctly.	FPS receipt.

Ask directly

Do not infer loan type.

The employee declaration and HMRC notices are stronger than memory or assumptions.

Both loans

Student and postgraduate can coexist.

Payroll setup should preserve both answers before first pay.

Limit

Software handles calculation.

Manual overrides create audit risk unless supported by HMRC or provider guidance.

Postgraduate-loan starter payroll packet

Save the P45 or completed starter checklist before processing first pay.
Record postgraduate loan and student loan answers exactly as declared.
Check whether an HMRC instruction, previous deduction or payroll note changes setup.
Validate payroll software output on the first payslip before FPS submission.
Archive FPS receipt, payslip result and correction note if the employee later updates the declaration.

FAQ

Should we ask even if there is a P45?: GOV.UK says employers should ask about student or postgraduate loans even where a P45 exists.
Do we calculate the repayment manually?: GOV.UK says payroll software works out deductions after the answer is recorded.
Is this payroll advice?: No. It is an evidence checklist.

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