Student Loan Deductions have changed slightly, there are now two types of plan’s when deducting the SL. This should be always set up correclty by the employer/payroll provider, however, the P45 format has not been amended for 2016-17 and will still only contain an indicator to say that the employee has a loan in their previous employment. It will not say which plan type. All the employer can do is assume Plan 1.
The Starter Checklist which is available from HMRC’s website has been amended so make sure you’re using the correct one. Employee’s should be asked to fill one of these form out when they start, if correctly filled out it will say if they have a student loan and the plan type.