13 March 2026
HM Revenue and Customs (HMRC) has updated the PAYE starter checklist ahead of the new 2026/27 tax year.
The starter checklist is used when an employee does not have a P45 or when additional information is required so that employers can operate PAYE correctly. Employees complete this form and provide it to their employer so they can be set up on the payroll and ensure the correct tax and student loan deductions are applied.
From 6 April 2026, an updated version of the checklist is available to be used that includes a new checkbox allowing employees to indicate they are repaying this new plan 5 type. It can either be completed online or as a PDF document.
Alongside this addition, the guidance within the checklist has also been clarified. Employees completing the form will now be instructed to select only one undergraduate loan plan type. However, the Postgraduate Loan plan can still be selected in addition to one undergraduate loan plan where applicable.
These changes are designed to help ensure payroll systems operate the correct student loan from their first pay day and reduce errors where employees previously selected multiple plan types.
Student Loan Plan 5 applies to borrowers who applied for student finances for courses starting on or after 1 August 2023.
Key features include:
- A repayment threshold of £25,000 per year
- Deductions of 9% on earnings above the threshold.
- Payroll deductions will begin from the first pay day on or after 6 April 2026 where earnings exceed the threshold.
Employers should ensure they are using the correct version of the starter checklist and that payroll systems are updated to accommodate the new plan type.
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