Employers must collect student loan repayments from employees by deduction from their pay where their income exceeds the threshold for their loan type.
For 2026/27, the loan thresholds are:
- £26,900 for Plan 1 student loans
- £29,385 for Plan 2 student loans
- £33,795 for Plan 4 student loans
- £25,000 for Plan 5 student loans
- £21,000 for Post graduate loans.
Deductions are made at 9% of earnings in excess of the threshold for student loans and at 6% of earnings in excess of the threshold for post graduate loans.
HMRC have updated their guidance for employers on collecting student loan and post graduate loan repayments.
Latest News
Employers may meet the cost of fuel used for a business journey in a car or van by paying a…
At the time of the 2026 tax update on 23rd June 2026, HMRC published a consultation on making payments of…
HMRC are consulting on proposals for the more timely payment of tax due under Income Tax Self Assessment (ITSA). The…
Under the Approved Mileage Allowance Payment (AMAP) scheme, employers can make tax-free mileage payments to their employees who use…