Plan 2 loans: What happens if I have more than one job?
If you have more than one employment and work for different employers, your plan 2 student loan deductions are calculated separately on each one. Again, this follows a similar principle to NICs, which are usually calculated on a job-by-job basis.
Example – Emily
Emily has a plan 2 income-based student loan. When she graduated, she could not find a full-time job so took on part-time work with Company A, earning £20,500 a year. As she is not earning above the threshold, she does not have to make loan repayments.
In April 2018, she gets another part-time job for Company B, earning £5,000 a year. Company B is not in any way related to Company A.
Even though her total earnings are now £25,500 a year, neither employer has to deduct student loan repayments as each is within the £25,000 threshold.
However, if Emily 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 £25,500. There is more on self assessment later.