Confirmed – repayment thresholds for student finance
With effect from April 2026
If your employees have an outstanding student loan, HMRC will notify you via a start notice. You must then deduct repayments via the payroll.
However, an awareness of the thresholds is still worth having, as it can help inform decisions about pay rises or bonuses. The thresholds for 2026/27 will be as follows (previous levels in brackets).
- Plan 1 — £26,900 (£26,065)
- Plan 2 — £29,385 (£28,470)
- Plan 4 — £33,795 (£32,745)
- Plan 5 — £25,000 (first year in operation)
- postgraduate loan — £21,000 (unchanged)
Above these thresholds, repayment is at 6% for postgraduate loans, and 9% for all other types.
