Student Loan notices: which plan to apply?
27 July 2016
Over the last few weeks we have had several queries from members regarding SL1 notices not indicating whether Plan 1 or 2 should be applied. HMRC has provided an update on this issue.
We naturally contacted HMRC when we first received queries on this subject and they were looking into this issue. A fix has been organised but has been delayed. The expectation is that plan type information should be visible on the notices HMRC are issuing by mid-August.
In the meantime, employers can check plan type information by asking their employee, who if they don’t know should contact the Student Loans Company directly, or by referring to their completed starter checklist.
The default Plan is always Plan 1 so this should be applied until confirmation has been received.
For clarification, this issue relates specifically to SL1 Start Notices for employees who entered repayment prior to April 2016.
Related CIPP News
- Student Loan employer prompts being sent to pension providers - 4 May 2016
- Employer prompts for student loan deductions - 25 April 2016