Student loans and other deductions from pay
Student loan repayments, court orders and loans from the employer all come out of pay. Work out each one.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1Student loan repayments4 questions
A student loan is repaid through the payroll. HMRC tells the employer when to start.
The repayment is a percentage of pay above a threshold. Like National Insurance, each pay period is worked out on its own.
The threshold depends on the type of loan and changes over time. In this task it is £2,000 a month and the rate is 9%.
Task 2Court orders and other deductions4 questions