Only the following documents are valid authorisations to commence or cease student loan deductions:

  • Form SL1 – Start notice issued by HMRC
  • Form SL2 – Stop notice issued by HMRC
  • Form P45 – if box 5 has been ticked
  • Starter checklist – if indicated by answers to the Student Loan questions

Current deductions rates for 2020/21 are as follows: –  

For any loans before 2012, Plan 1 Loans will apply and for loans after 2012 Plan 2 Loans will apply. 

Earnings above the thresholds for both Plan 1 and Plan 2 for 2021/22 will be calculated as normal at 9%. The rate of the postgraduate loan type introduced in the 2019/20 tax year will continue to be calculated at 6%.  

Summary of the Student Plan thresholds:  

  • Plan 1 loans will increase from the current threshold of £19,390 to £19,895 in 2021/22.  
  • Plan 2 loans will increase from the current threshold of £26,575 to £27,295 in 2021/22.  
  • Postgraduate loans will not change and remain at the current threshold of £21,000.  

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