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Chartered Certified Accountants
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New Student loan limits

If you are an employer, you need to be aware that the earnings thresholds at which you are required to make deductions from an employee’s pay if they have a student loan have increased from 6 April 2018.

The new annual thresholds changes from:

  • £17,775 to £18,330 for Plan 1 loans

  • £21,000 to £25,000 for Plan 2 loans

The new limits apply to all current and future student loans.

Tip for employers: To ensure you make the correct deductions when you take on a new employee with a student loan, you must enter the correct plan type – Some employees can have both plan types and you should record this in your payroll software.

04 May 2018

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