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Payroll · SL2 stop notice

SL2 stop notice received? Stop the named student-loan deduction on the first available payday.

An SL2 must be matched to the employee, student-loan type, stop date and first practical pay run. Keep the notice, payroll change, payslip and FPS evidence together.

Direct answer

HMRC says employers stop student-loan deductions when they receive an SL2 and apply it from the first available payday after the stop date shown.

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

Sources: HMRC employer guidance, GOV.UK student loans and HMRC stop-notice manual.

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SL2 stop notice student loan payroll checklist

Help UK payroll teams action SL2 notices with an audit trail. Updated 2026-07-13.

Checklist controls

CheckWhat to confirmProof to retain
NoticePGL2, issue date, employee and loan type.HMRC notice.
Stop pointNext available pay date or software rule.Payroll note.
Final deductionLast payslip with PGL deduction.Payslip preview/final.
SoftwareOld value, new value and date changed.Audit log.
FPSSubmission 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.

SL2 stop-notice packet

  1. Save the SL2 and confirm employee, issue date, stop date and loan type.
  2. Identify the first available payday on which the notice can practically be applied.
  3. Remove only the relevant student-loan borrower indicator and retain the old value.
  4. Check the payslip and FPS fields before submitting payroll.
  5. Archive the notice, audit log, payslip, FPS receipt and any employee 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 2026-07-13. This page is independent and does not replace official services, professional advice or site-specific rules.