The Scottish government introduced a new plan for Scottish student loans known as ‘Plan 4’ from 6 April.

HMRC has highlighted that ‘this change will impact employers across the UK, not only those located in Scotland. It will apply to employers who have employees paying back their loan from Student Award Agency for Scotland (SAAS).’

Employers will be notified by a student loan start notice, SL1, for all affected employees. The change applies to the first FPS submission after 6 April 2021 so some employees will over re-pay on their student loan.

HMRC says that ‘the new plan will be operated by you in the same way as plan types 1 and 2. If you need to make either a student or postgraduate loan, or both, deductions from 6 April 2021, you will need to know which plan or loan type to use. This could be Plan 1, Plan 2, Plan 4 and/or PGL. An employee may repay Plan 1 or Plan 2 or Plan 4 and PGL at the same time.’

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