Payroll Legislation

What are the Earning Thresholds and Rates for Student & Postgraduate Loans?

Legislation

What are the Earning Thresholds and Rates for Student & Postgraduate Loans?

Due Date

6 April 2021

Summary

The Department for Education has confirmed that from 6 April 2021 the Plan 1 and Plan 2 Student Loans thresholds will increase to:

  • £19,895pa for Plan Type 1
  • £27,295pa for Plan Type 2
  • £25,000pa for Plan Type 4

Student Loan deductions will continue to be calculated at 9% on earnings above the Plan 1, Plan 2 or Plan 4 threshold. The Postgraduate Loan threshold will remain at £21,000.

Earnings above £21,000 will continue to be calculated at 6%. Employers will be notified of any plan type moves from Plans 1 to 4, using the current SL1/PGL1 notification process, in time for April 2021.

Payroll Legislation Guide

Do you know the dates of all the complex payroll legislation changes? Are you aware of what you need to do to ensure your business is compliant? Many UK businesses aren’t aware…