UK / Checker
Student loan deduction checker (UK)
Each of the five UK student loan plans has a different threshold and rate. A wrong-plan deduction can cost or save you hundreds a year. This checker shows which plan should apply and how to verify the cash deduction on your payslip.
Educational guidance only. PayslipIQ is not HMRC, your employer, a payroll provider, tax adviser, financial adviser, pension adviser or legal adviser. Always verify with payroll or HMRC before acting.
The problem
Student loan deductions are easy to get wrong because the plan you are on depends on when and where you started study, not what you would assume.
The Student Loans Company tells your employer which plan applies, via HMRC. If your employer is using the wrong plan - or has failed to start the deduction at all when you have crossed the threshold - your YTD figure will quietly drift away from the correct number.
Plain-English explanation
UK student loan plans for 2026/27:
- Plan 1 - annual threshold £26,065. Rate 9% above the threshold.
- Plan 2 - annual threshold £28,470. Rate 9% above the threshold.
- Plan 4 (Scotland) - annual threshold £32,745. Rate 9% above the threshold.
- Plan 5 (post-2023 starters in England) - annual threshold £25,000. Rate 9% above the threshold.
- Postgraduate Loan (PGL) - annual threshold £21,000. Rate 6% above the threshold.
Deductions are calculated each pay period on the period's pay (not annualised). On a monthly payslip the period threshold is the annual figure ÷ 12. PGL and Plan 1/2/4/5 deductions can stack - most postgraduates have two deductions on the same payslip.
Worked example - Plan 5 monthly deduction
- Annual gross salary £36,000
- Monthly gross pay £3,000.00
- Plan Plan 5
- Annual threshold £25,000 → monthly £2,083.33
- Pay above threshold this month £916.67
- Deduction this month (9%) £82.50
- Annual deduction (illustrative) £990.00
- YTD after 6 months £495.00
Worked example uses 2026/27 UK figures and is illustrative. Do not use it as a personal tax calculation.
Apply this to your own payslip
Get your figures checked in plain English
Upload a redacted payslip or enter your figures manually. PayslipIQ will run the same logic explained on this page and give you a per-line second opinion. No signup. Image not stored by PayslipIQ.
Check My Payslip FreeStep by step
Identify which plan you are on
Sign in to your Student Loans Company account or your HMRC personal tax account to confirm the plan. England post-2023 = Plan 5; pre-2012 = Plan 1; 2012–2023 = Plan 2; Scotland = Plan 4.
Find the threshold for the plan
See the plain-English explanation above. Divide the annual threshold by your pay frequency to get the period threshold.
Calculate the period deduction
Pay this period minus the period threshold, multiplied by the plan rate (9% for plans 1/2/4/5, 6% for PGL). The result should match the deduction on your payslip within £1 rounding.
Check whether PGL also applies
If you have a postgraduate loan, the PGL deduction is calculated separately at 6% above £21,000 annualised. Both deductions can appear on the same payslip.
Verify YTD if you are mid-year
Year-to-date deduction should equal the sum of period deductions. A sudden jump usually means a missed period being caught up.
Run a free PayslipIQ check
PayslipIQ identifies the plan that best matches your figures and flags discrepancies between expected and actual deduction.
What to ask payroll
- Which student loan plan is your system applying for me - Plan 1, 2, 4, 5 or Postgraduate Loan?
- Did you receive a start notice (SL1) from HMRC for me, and on what date?
- If I have both a Plan 5 and a PGL deduction, are both being applied separately?
- If my plan is wrong, can it be corrected through payroll, or do I need to update HMRC first?
- Will any over-deduction this year be refunded through payroll once corrected?
When to contact HMRC
- Sign in to your Student Loans Company account at https://studentloanrepayment.co.uk/ to confirm the plan and your balance.
- Sign in to your HMRC personal tax account to view the start/stop notices HMRC has issued to your employer.
- If your plan is wrong, contact the Student Loans Company in the first instance - they update HMRC, who then notifies your employer.
- Over-deductions across previous tax years are refunded by the Student Loans Company, not by HMRC or payroll.
FAQ
- Which student loan plan am I on?
- Plan 1 if you started English/Welsh/NI undergraduate study before 2012, Plan 2 if 2012–2023, Plan 5 if 2023 onwards. Plan 4 if you studied in Scotland. PGL applies on top if you took out a postgraduate loan.
- Why is no student loan being deducted?
- Either your pay is below the period threshold, or your employer has not received a start notice (SL1) from HMRC. Both are worth checking - a missing SL1 means an unwelcome catch-up later.
- Can I have two student loan deductions on one payslip?
- Yes. Postgraduate Loan deductions sit alongside Plan 1, 2, 4 or 5 deductions and are calculated independently. Most postgraduates see two lines.
- Will I get a refund if the wrong plan was applied?
- Yes, but the refund is processed by the Student Loans Company once they have been notified. Contact SLC to request a review and a refund of any over-deduction.
- Does my student loan deduction reduce my tax?
- No. Student loan deductions are taken from net pay (post-tax) and do not reduce taxable pay or NI-able pay.
Related checkers
Educational guidance only. PayslipIQ provides an educational second opinion based on the figures you supply and the public 2026/27 UK PAYE, NI, pension and student-loan rules. PayslipIQ is not affiliated with HMRC and is not a regulated tax, legal, financial, payroll or employment adviser. Verify any final figure with your payroll team, HMRC, your pension provider or a qualified professional before acting.
Published 2026-05-09. Last reviewed 2026-05-09. See our methodology and payslip processing privacy notice.