Student and postgraduate loans thresholds and rates from 6 April 2021

Plan 1 – £19,895, earnings above this threshold will continue to be calculated at 9%.

Plan 2 – £27,295, earnings above this threshold will continue to be calculated at 9%.

Plan 4 (new plan type, Scottish Student Loans (SSL) – £25,000, earnings above this threshold will be calculated at 9%.

Postgraduate loan – £21,000, earnings above this threshold will continue to be calculated at 6%.

Student and postgraduate loan start notice (SL1/PGL1)

It is important that you:

  • check your client’s online account for student loan and or postgraduate loan start and stop notices, if the email or correspondence address has changed let us know as soon as possible
  • take the correct action to start student and or postgraduate loan (PGL) deductions as soon as possible
  • record the deductions correctly on the employees full payment submission

This ensures that the employee does not pay any more or less than necessary.

If your client receives a student loan and or PGL start notice (SL1/PGL1) from HMRC, it is important that you:

  • use the correct loan/plan type
  • check the start date shown on the notice and take deductions from the next available pay day

If the earnings are below the student loan and/or PGL thresholds, update the employee’s payroll record to show they have a student loan and/or PGL and file the start notice. Deductions should continue until HMRC tells your client to stop.

Further information can be found on student loan and postgraduate loan repayment guidance for employers.

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Refund Policy

For online payments taken via the Invoice Payment page, no refunds can be given as payment is only taken after my service has been provided.

 

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