Initial details about the introduction of a new student loan product – Postgraduate Loans (PGL) – have been released by HMRC.
The earliest individuals can start repayment of a PGL is 6 April 2019 through Pay As You Earn (PAYE) or April 2020 through Self-Assessment.
The collection of PGL will work in a similar way to student loan deductions.
If your employee has a PGL:
HMRC will send a new Postgraduate start notice (PGL1) to ask the employer to start taking PGL deductions HMRC will send a new Postgraduate stop notice (PGL2) to ask the employer to stop taking PGL deductions employers will collect this through the normal PAYE process individuals may also be liable to repay a Student Loan Plan Type 1 or 2 concurrently with PGL. HMRC will let their employer know this by continuing to send the normal Student Loan start (SL1) and Student Loan stop (SL2) notices as well as PGL1s and PGL2s.More information on PGLs will be included in Agent Update 68.
