New Student Loan Repayments rates this month
A reminder that one of the many changes this month is a change to the payroll repayment rates for those with Student Loans.
For borrowers repaying on Plan 1 – if earnings in the week or month exceed the highest amount of earnings shown in the tables you’ll need to deduct the ‘pay period threshold’ from total earnings in the week or month. Do this by:
deducting £352.50 from weekly earnings for weekly paid employees, or deducting £1,527.50 from monthly earnings for monthly paid employees
multiply the result (the excess) by 9% (0.09), round down this figure to the nearest whole pound.
For borrowers repaying on Plan 2 – if earnings in the week or month exceed the highest amount of earnings shown in the tables you’ll need to deduct the ‘pay period threshold’ from total earnings in the week or month. Do this by:
deducting £480.76 from weekly earnings for weekly paid employees, or deducting £2,083.33 from monthly earnings for monthly paid employees
multiply the result (the excess) by 9% (0.09), round down this figure to the nearest whole pound.
The new rates and further information is on the HMRC website
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