Payroll · SL2/PGL2

SL2 or PGL2 received? Stop deductions on the first available payday after the notice date.

A stop notice needs a controlled payroll change, not an informal employee request. Record the notice, stop date, first practical payday, borrower indicator and FPS outcome before closing the case.

Direct answer

HMRC guidance says student or postgraduate loan deductions stop on the first available payday after the stop date shown on an SL2 or PGL2 notice.

HMRC notices, payroll software and current GOV.UK guidance control. This checklist is not payroll, tax or legal advice.

Sources checked 24 July 2026: HMRC employer guidance updated 6 April 2026 and GOV.UK stopping deductions.

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SL2 PGL2 stop notice first available payday checklist

Help UK payroll teams implement student-loan stop notices with evidence. Updated 2026-07-24.

Seven-day payroll check · 2026-07-30

Prove when the stop notice became actionable

Direct answer: retain the SL2 or PGL2 receipt time, the payroll cut-off, and the first available payday used. Do not stop deductions solely on an employee request.

Notice receipt date and type recorded
Payroll cut-off and first available payday evidenced
FPS result and employee explanation saved

HMRC employer guidance was rechecked on 30 July 2026. Payroll software and the official notice control.

Before payroll action · 2026-07-26

Match the stop notice, employee record and available payday

Direct answer: payroll should use the official stop notice and apply it to the first available payday under the payroll process. Keep the notice and payroll evidence together.

Match the employee identifiers without copying them here.
Record when payroll received the stop notice.
Save the affected payday and FPS evidence.

Current GOV.UK/HMRC payroll guidance rechecked 26 July 2026. This checklist does not replace the stop notice or payroll rules. Copy or print this action gate

Official-source review · 2026-07-24

Payroll decision and evidence checkpoint

Treat the notice date, payroll cut-off and processed payday as separate controls so the stop can be audited.

Verified status	Payroll action	Audit evidence
No HMRC stop notice	Continue under current instructions and direct the employee to the official route.	Employee query and response note
Notice received before cut-off	Apply it to the first available payday after the stated stop date.	Notice, cut-off and payroll report
Notice received after payroll closed	Record why the next practical payday was used and check the FPS.	Dated receipt and FPS evidence

GOV.UK and HMRC employer guidance rechecked 24 July 2026. The actual SL2/PGL2 and current payroll guidance take priority.

Checklist controls

Control	What to confirm	Evidence
Notice	SL2/PGL2, employee and stop date.	Notice copy.
Payday	First payroll where change is practical.	Calendar/cut-off.
Record	Borrower indicator removed as directed.	Audit note.
FPS	Deduction and YTD values submitted.	FPS report.

Authority

Do not stop on request alone.

HMRC must issue the notice or specific authority.

Cut-off

Document first available payday.

A dated payroll cut-off explains when the instruction could be applied.

Limit

Refunds follow a separate route.

After a stop notice, check official guidance before refunding deductions.

SL2/PGL2 payroll handoff

Match notice to employee, loan type and stop date.
Identify the first available payday after payroll cut-off.
Update the borrower indicator and retain the notice.
Check the payslip and FPS values after processing.
Give any suspected overpayment the correct SLC/HMRC route.

FAQ

Can deductions stop when the employee asks?: No; GOV.UK says not to stop without an HMRC stop notice or specific authority.
Which payday applies?: The first available payday after the stop date where it is practical to apply the notice.
Is this payroll advice?: No. It is an operational checklist.

Updated 2026-07-24. This page is independent and does not replace official services, professional advice or site-specific rules.