Student loans
#student-loans#plan-5Plan 5 student loans: preparing for first deductions
Plan 5 student loan deductions start reaching payroll from April 2026. Here is how to spot Plan 5 employees and set your payroll up correctly.
- Published 12 Jun 2026
- Last checked 29 Jun 2026
- 4 min read
Quick take
- What changed
- Plan 5 student loan repayments begin from 6 April 2026, with a repayment threshold of £25,000 and a 9% deduction rate above that threshold.
- Who this affects
- Employers with staff who started their undergraduate course in England on or after 1 August 2023 and are now moving into repayment.
What employers should do now
Employer checklist
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Need help?
Confident with Plan 5 deductions?
Plan 5 sits alongside Plans 1, 2 and 4. We'll check your payroll is picking up the right plan for every employee.
Key dates
- 6 April 2026: First Plan 5 deductions can appear on payroll.
Related pages on this site
Official sources
This guidance is for general information only and should not be treated as legal, tax or payroll advice. Always check official guidance or speak to a qualified adviser before acting.