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Student Loans just became more complex – there are now Plan 1 and Plan 2 Student loans and these have to be correctly administered via the payroll.
So, with effect from April 2016 there are 2 different types of student loans repayment. These are :
Plan 1 with a 2016-2017 threshold of £17,495 which equates to £1,457 a month or £336 per week
Plan 2 with a 2016-2017 threshold of £21,000 which equates to £1,750 a month or £403 per week
HMRC expects that when you employ a new starter they will know which Plan they are on. If they don’t (which in our experience is the case) they should automatically be entered as Plan 1 until HMRC advise to the contrary which will involve changes and amendments if the employee is actually on Plan 2.
Plan 1 Student Loans apply if employees took out a Student Loan :

 in Scotland or Northern Ireland or received EU funding, at any time in Scotland or Northern Ireland or
 before 1 September 2012, and
 lived in England or Wales; or
 received EU funding in England or Wales

Plan 2 Student Loans apply if employees took out a Student Loan :

 On or after 1 September2012; and
 Lived in England or Wales
 Received EU funding in England or Wales
 Lived in England and took 24+ Advanced Learning Loan for a further education course