New student loan repayment plans going into 16/17.
There are two types of student loan which work out into slightly different repayment plans. Plan 1 is any student loan taken out 'before' September 2012, and Plan 2 is any student loan taken 'on or after' September 2012. They are paid through your payroll.
You have to be earning over a certain amount of income before you are required to repay your loan - this is known as the repayment threshold. The repayment threshold for Plan 1 is £17,335 and for Plan 2 the threshold is £21,000.
When your salary exceeds the threshold amount, you will then start to pay back the student loan at 9% of the difference between your salary (after tax) and the threshold. This will be subtracted from your pay via your payroll.
If you have dividends (or any other forms of income), then further repayments are made through your Self Assessment. When filling out your Self Assessment, you also need to make sure you record all the repayments youve already made via payroll to ensure you dont make double repayments.
If you have both a Plan 1 and Plan 2 student loan then the table below shows how repayment amounts are split and applied to each plan type.