Determining which Student Loan to apply in the payroll is vitally important to get the deduction right the first time. With the advent of Plan 5 Student Loan from 06 April 2026, the Starter Checklist will need to be updated on Gov.UK.
However, many employers have devised their own versions of this non-statutory form, so ICB wants to provide all the information necessary so that you can pass this to clients, if necessary. Remember:
- Student Loans (Plans 1, 2, 4 and 5) apply to undergraduate courses, Postgraduate Certificates of Education (PGCE), Advanced Learner Loans (England only) and / or Higher Education Short Course Loans (HESC) (England only). They will also apply to postgraduate courses in Northern Ireland and Scotland
- Postgraduate Loans (Plan 3) apply to postgraduate master’s or doctoral courses starting on and after 01 August 2016 (England) and 01 August 2017 (Wales)
The determining factors are all concerned with where the application for finance was made and when the course started:
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Plan
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Criteria
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Threshold / Deduction (2025/2026)
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|
1
|
If studying and application for finance was made through:
- Student Finance Northern Ireland; or
- Student Finance England if the course started before 01 September 2012; or
- Student Finance Wales if the course started before 01 September 2012
|
£26,065 per annum, above which repayments are at 9%
|
|
2
|
If studying and application for finance was made through:
- Student Finance England for courses starting between 01 September 2012 and 31 July 2023; or
- Student Finance Wales for courses starting 01 September 2012 onwards
|
£28,470 per annum, above which repayments are at 9%
|
|
3 (PGL)
|
If studying postgraduate masters or doctoral course and applications for finance was made through:
- Student Finance England for courses starting on or after 01 August 2016; or
- Student Finance Wales for courses starting on and after 01 August 2017
|
£21,000 per annum, above which repayments are at 6%
|
|
4
|
If studying any undergraduate or postgraduate course and application for finance was made through the Student Awards Agency Scotland (SAAS)
|
£32,475 per annum, above which repayments are at 9%
|
|
5
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If studying and application for finance was made through Student Finance England for courses starting from 01 August 2023
|
£25,000 per annum, above which repayments are at 9%
|
For Bookkeepers
HMRC have advised the Collection of Student Loan Consultation group that the new Starter Checklist will be made available to software developers in November 2025 and will officially go live on Gov.UK on 06 April 2026. Employers need to consider revising their own Starter Checklists now, as ex-students could be starting with employers soon.
However, do note that a borrower on Plan 5 cannot have their first deduction until tax year 2026/27.
