Via the monthly Wages Wednesdays webinars, ICB has been advising members to update their own versions of the Starter Checklist in advance of the introduction of the new Plan 5 Student Loan from April 2026.
HMRC have released the final version of the revised Starter Checklist to software developers. However, whilst it is good for them to have a version for their products, ICB has obtained this and wants to make members aware.
View the checklist here.
In turn, members may want to release this to their clients.
For Bookkeepers
Note that the first deductions under the new Plan cannot be made until the first payday on or after 06 April 2026. Indeed, software products may not have the facility in 2025/26 to record this new Plan type.
The Plan operates with two key features:
1. There is a lower repayment threshold - £25,000 per year, £480.76 weekly, £2,083.33 monthly
2. There is a longer repayment period before the loan is written off to become a taxpayer debt. This is 40 years
Importantly, it only applies if the application for the Loan was made to Student Finance England for courses starting on and after 01 August 2023.
Therefore, the revised Starter Checklist should be used for the purposes of updating an employer’s own version in readiness for April 2026.
ICB wants to remind you of the following:
• For employees, the new Starter Checklist makes clear they should only select one Plan type for operation in the payroll, even if they have multiple Plan types. This will be the Plan that is in repayment and they need to check their Student Loan account; and
• For employers, the new Starter Checklist makes clear they must only deduct one undergraduate Loan type (1, 2, 4 or 5) but they can operate a Postgraduate Loan (Plan 3) at the same time
ICB welcomes the advance publication of this to enable employers to modify their own versions of the form.
