Calculate student loan payment full#
Calculate student loan payment software#

If you receive a SL1 or PGL1 start notice for someone: The worker will account for student loan obligations in their own tax return.įind out more about deemed employer responsibilities under off-payroll working rules. If you’re operating off-payroll you are not responsible for deducting student or postgraduate loan repayments for workers engaged through their own companies. Check the student loan recovery thresholds.

When the employee is on more than one plan, start deductions for the plan with the lowest recovery threshold until you get a SL1. Defaulting to Plan 1 is only available for Plan 1, Plan 2 or Plan 4 loans.

Calculate student loan payment software#

If they cannot tell you, use Plan 1 in your payroll software until you get a student loan start notice (SL1). If your employee does not know which plan or loan they’re on, ask them to go to the repaying your student loan guidance.

you receive a generic notification service ( GNS) student loan or postgraduate loan, or both, reminder - ask your employee to confirm their plan or loan type, or both.

HMRC sends you a PGL1 start notice - this will tell you they have a postgraduate loan.

HMRC sends you a SL1 start notice - this will tell you which plan type to use.

your new employee fills in a starter checklist showing they have a student loan and or postgraduate loan - the checklist should tell you which plan or loan type, or both to use.

your new employee tells you they’re repaying a student loan - ask your employee to confirm their plan or loan type, or both.

your new employee’s P45 shows deductions should continue - ask your employee to confirm their plan or loan type, or both.

Calculate student loan payment full#

You will need to include these on your Full Payment Submission if any of the following apply: Start making student loan or postgraduate loan deductions, or both, from the next available payday using the correct plan or loan type or both. Your employee may be liable to repay a postgraduate loan at the same time as a student loan (Plan 1 or Plan 2 or Plan 4). Use the same gross pay amount that you would use to work out your employer’s secondary Class 1 National Insurance contributions. You should work out the correct figure of employee earnings on which student loan and postgraduate loan deductions are due. Starting student loan and postgraduate loan deductions - checking plan and loan type Postgraduate loans - £21,000 annually (£1,750 a month or £403.84 a week).Įmployees repay 6% of the amount they earn over the threshold for postgraduate loan. Plan 4 - £27,660 annually (£2,305.00 a month or £531.92 a week)Įmployees repay 9% of the amount they earn over the threshold for Plan 1, 2 and 4.With effect from April 2023, the thresholds for making student loan deductions are: