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The Department for Education has launched Postgraduate Loans (PGL) alongside its current Student Loans products. Individuals will be able to repay these loans through PAYE from April 2019 or from April 2020 through Self-Assessment.

 

  • HMRC will notify employers when a PGL deduction needs to start or stop via a PGL1 start notice and PGL2 stop notice 
  • Employers will calculate and deduct the repayments through the payroll and submit these to HMRC via PAYE in the same way that Student Loans deductions are processed
  • In some instances, employees may have to repay a Student Loan Plan Type 1 or 2 alongside a PGL and employers will continue to be notified of these via the standard SL1 start notices and SL2 stop notices.
  • Individuals will only start making repayments via payroll once their annual income is above the repayment threshold of £21,000. Repayments will then be calculated at 6% of gross earnings above this threshold in any given period.

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