Business Services Organisation
The Student Loans Company (SLC) advise HMRC when you are due to begin repayment who instruct your employer to start deductions from you pay.
Student Loan deductions are calculated on earnings over the stated thresholds at the following percent.
Plan 1
| Employee earnings threshold | £26,065 pa |
9% |
| £2,172.08 pm | ||
| £501.25 pw |
Plan 2
| Employee earnings threshold | £28,470.00 pa |
9% |
| £2,372.50 pm | ||
| £547.50 pw |
Plan 4
| Employee earnings threshold | £32,745.00 pa |
9% |
| £2,728.75 pm | ||
| £629.71 pw |
Postgraduate Loan
| Employee earnings threshold | £21,000 pa |
6% |
| £1,750 pm | ||
| £403.84 pw |
Employers cannot stop deductions when instructed by an employee.
An employee should contact the SLC if they think they have overpaid their loan. They will instruct HMRC to issue an employer to stop deductions.
Refunds due to the employee will be refunded via the SLC and not the employer.
For more information on Student Loan deductions click the link below:
Repaying your student loan – GOV.UK