Student and Postgraduate loans

Student and Postgraduate loans

The Student and Postgraduate loans thresholds and rates from April 2023 will be as follows:

  • plan 1: £22,015
  • plan 2: £27,295
  • plan 4: £27,660
  • postgraduate loan: £21,000

Deductions for:

  • plans 1, 2 and 4 remain at 9% for any earnings above the respective thresholds
  • postgraduate loans remain at 6% for any earnings above the respective threshold

Student loan plans, loan types and thresholds guidance will be updated on 6 April 2023 with the new thresholds.

Student and Postgraduate loans start notices

If you receive a student loan start notice (SL1) or postgraduate loan start notice (PGL1) from HMRC, it is important that you check and use the correct:

  • loan or plan type on the start notice
  • start date shown on the notice

This makes sure your employee does not pay any more or less than they have to.

If an employee’s earnings are above the respective student loan and postgraduate loan thresholds, and you do not take deductions, HMRC will send you a generic notification service prompt as a reminder. They’ll contact you directly if deductions still haven’t started.

If an employee’s earnings are below the respective student loan and postgraduate loan thresholds, you should:

  • update the employee’s payroll record to show they have a student loan and or postgraduate loan
  • file the start notice

Deductions should continue until HMRC notifies you to stop.

More information is available on starting student loan and postgraduate loan deductions — checking plan and loan type guidance.

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