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Student loans.
From 6 April 2016 there are two types of student loans plan 1 and plan 2 which can be deducted through PAYE. The new plan 2 applies only to England and Wales and has a different threshold from plan 1.
The threshold for plan 1 is £17 495 a year (£336 a week and £1 457 a month). For plan 2 it is £21 000 (£404 a week and £1 750 a month). The deduction for the repayment of the loans through the payroll for each plan is calculated on all earnings that attract National Insurance. However the lower and upper earnings limits are disregarded. The deduction for both plans is calculated at 9% and is taken as a post-tax and National Insurance deduction.
When a new starter joins a company they must tell their employer which plan they are repaying. The Student Loan Company wrote to...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
