Payroll · student loan

New starter has a student loan? Capture the starter checklist evidence before first FPS.

Student loan and postgraduate loan answers affect the payroll record, first pay and FPS reporting. Keep the employee declaration, plan notes, software audit and receipt together.

Direct answer

GOV.UK says a starter checklist helps an employer work out tax code and student or postgraduate loan deductions when setting up a new employee.

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

Source base: GOV.UK new employee student loans, starter checklist for PAYE and student loan repayment guidance.

SEO focus

starter checklist student loan payroll checklist

Help UK payroll teams document starter student-loan setup and FPS reporting. Updated 2026-07-06.

Checklist controls

Check	What to confirm	Proof to retain
P45	Whether the employee supplied a P45.	Employee document.
Declaration	Starter checklist statement and date.	Completed checklist.
Loan	Student loan and postgraduate loan answers.	Declaration fields.
Payroll	Software plan setup and first pay result.	Audit screenshot.
FPS	Student/postgraduate loan amounts reported correctly.	FPS receipt.

Before pay

Ask before first payroll run.

Correct loan fields are easier before the first FPS than after correction.

Plan

Do not infer from memory.

Use the employee's declaration, HMRC notice and payroll software rules.

Limit

Complex deductions can interact.

Protected earnings, court orders and multiple loans may need specialist payroll review.

Student-loan starter payroll packet

Save the employee P45 or completed starter checklist with date received.
Record student loan and postgraduate loan answers exactly as declared.
Check whether HMRC has issued any separate instruction or tax code.
Validate payroll software output before submitting the first FPS.
Archive FPS receipt, payslip result and correction note if any field changes later.

FAQ

Does the starter checklist replace the P45?: GOV.UK says the starter checklist is used if there is no P45 and can also collect student loan information.
Do I calculate the deduction manually?: GOV.UK says payroll software works out deductions after answers are recorded.
Is this payroll advice?: No. It is an evidence checklist.

Updated 2026-07-06. This page is independent and does not replace official services, professional advice or site-specific rules.