The following guide provides an example of how to calculate your Student Loan deductions based on your Gross Pay. You will always be required to make a repayment on your outstanding student loan.
You will stop making repayments when:
In addition there are time limits after which you will not be required to continue making loan repayments. These time limits can vary depending on where you studied. Full details can be found in the Student Loans booklet - A guide to terms and conditions. You can view this booklet in the 'Reference guides' section of the Student Loan repayment website www.studentloanrepayment.co.uk. You can also find additional information on the legalities of student loan repayment at http://www.hmrc.gov.uk/students/limits_intrates_repaying_6_5.htm.
Student loans repayment thresholds are dependent on the year that you commenced study. If your course started before the 1st September 2012, you will fall into the group which repays under 'Plan 1'. If you started your course on or after 1st September 2012 then your student loan repayments will be calculated using 'Plan 2'. Both Student loan repayment rates at 9% for the tax year 2012/2013 which is the same rate as 2011/2012.
If you are thinking of setting up your own limited company, we suggest you consult a specialist accountant for advice on how a student loan will affect setting up and running your own limited company.
| Student Loan Rates | 2009 / 2010 | 2010 / 2011 | 2011 / 2012 | 2012 / 2013 | 2013 / 2014 |
|---|---|---|---|---|---|
| Rate % | 9% | 9% | |||
| Plan 1 Payable Above | 15,000 | 15,795 | |||
| Plan 2 Payable Above | N/A | N/A | N/A | 21,000 |