The repayment thresholds and deduction rates of plan 1 and 4 loans from 6th April 2022 have the following reminders:
- PAYE accounts should be evaluated for a student loan or postgraduate loan start and stop notices; and
- there should not be any student loan deductions where the worker is subject to the off-payroll working rules as the worker will account for student loan obligations in their own tax return. To make sure that the employer does not get student loan notices, the OPW marker should be set in the payroll software on the deemed employee’s record.
Updated thresholds and rates from April 2022 :
Payroll agents can refer to this article.
Repayment thresholds and interest rates for student loans from 6 April 2022 will be :
- plan 1 — £20,195 (up from £19,895)
- plan 4 — £25,375 (up from £25,000)
9% is the interest rate for plans 1 and 4 for any earnings above the respective thresholds.
The repayment thresholds and interest rates for plan 2 and postgraduate loans have not yet been announced. The details will be disclosed as soon as possible.
To know more about the new student loan thresholds and rates for 2022 to 2023, visit GOV.UK.
