Plan 1 loans: What happens if I have more than one job?
If you have more than one employment and work for different employers, your Plan 1 student loan deductions are calculated separately on each one. Again, this follows a similar principle to National Insurance contributions (NIC), which are usually calculated on a job-by-job basis.
Example – Katrina
Katrina has an income-based Plan 1 student loan. She works part-time at Company A, earning £13,500 a year. As she is not earning above the threshold, she does not have to make loan repayments.
In April 2020, she gets another part-time job for Company B, earning £7,000 a year. Company B is not in any way related to Company A.
Even though her total earnings are now £20,500 a year, neither employer has to deduct student loan repayments as each is within the £19,390 threshold.
However, if Katrina were required by HMRC to fill in a tax return, both employments would be combined in the overall student loan repayment calculation and she would then have to make repayments based upon her total earnings of £20,500. There is more on Self Assessment later in this section.