From 6 April 2016, HMRC introduced a new plan type for student loans. Employers should now be deducting student loan repayments from employees using either Plan 1 or Plan 2.
How to know which plan type to use
There are a number of ways to establish an employee’s plan type:
• check the employee’s Student Loan Start Notice (SL1)
• ask the new employee to fill in the starter declaration checklist
• ask the employee to go online to the Student Loan Company website at www.slc.co.uk/students/loan-repayment.aspx if they do not know their plan type already.
If an SL1 shows a start date prior to 6 April 2016 but there is no plan type shown, deductions should be made under Plan 1.
More information on plan types and student loans can be found on the Student loan repayments: guidance for employers webpage on GOV.UK at www.gov.uk/guidance/special-rules-for-student-loans