Student loan repayment thresholds

From 6 April 2017, the repayment threshold for plan 1 loans increased to £17,775. The plan 2 threshold will remain at £21,000.

Off Payroll working – student loan deductions

From 6 April 2017 reforms to off-payroll working in the public sector introduced a change to the way fee-payers (public authority, agency or other third party) pay for services from individuals engaged through an intermediary.

The fee-payer will:

  • be required to report the amounts deemed paid to the worker, including Income Tax and National Insurance contributions to HMRC. This should be done on or before the date of deemed payment to the worker on a Full Payment Submission (FPS).
  • not be required to report or deduct Student Loan payments from these individuals. Student Loan payments will be calculated and deducted from the individual’s Self Assessment (SA) return based on their total income.

If the fee-payer receives a Student Loan Start Notice (SL1) and a Generic Notification Service (GNS) Employer Prompt for these individuals, they do not need to take any action and should file these away for their own records.

GNS Notifications for student loans Employers – remember to regularly check your inbox for online notices as this is where you’ll find any GNS student loan notifications.

If you receive a GNS notification instructing you to start student loan deductions, ask each employee displayed which plan type they are repaying, or refer to the SL1 Start Notice if you have it. Either way, you can now begin making deductions.

Read HMRC Student Loan repayment: guidance for employers.


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