Payroll 2026 · SL2 stop notice

Received an SL2? Stop the named loan on the first available payday after its stop date.

Keep the notice, payroll implementation date and FPS result together. Do not stop deductions only because an employee says the balance is repaid, and do not invent a refund from the stop notice.

Direct answer

HMRC says to stop student-loan deductions from the first available payday after the stop date on the SL2; that means the first payday on which it is practical to apply the notice.

The notice, current HMRC guidance and payroll software control. An employee request alone is not authority to stop; this is not payroll or tax advice.

Source checked 2 August 2026: HMRC employer guidance, updated 6 April 2026.

SEO focus

student loan SL2 stop notice first available payday checklist

Help UK payroll teams evidence a stop notice. Updated 2026-08-02.

Checklist controls

Control	What to verify	Evidence
Notice	Employee, loan/plan and stop date.	SL2.
Payday	First practical payday after stop date.	Calendar.
Payroll	Borrower indicator and calculation.	Audit log.
Reporting	FPS and payslip outcome.	Reports.

Authority

Employee instruction is not enough.

Wait for HMRC authority.

No refund

An SL2 does not authorise an employer refund.

Use official guidance.

Record

Retain the stop notice.

Link it to the payroll change.

SL2 implementation record

Validate the employee and loan type.
Record the notice stop date.
Choose the first practical payday.
Update payroll and retain SL2.
Verify FPS and payslip.

FAQ

Can payroll stop when the employee asks?: No; HMRC says not to stop on that basis alone.
Does SL2 mean refund prior deductions?: HMRC says the employer must not make a refund merely because SL2 was received.
Is this payroll advice?: No.

Updated 2026-08-02. This page is independent and does not replace official services, professional advice or site-specific rules.