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 National Insurance contributions (NIC), 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 £21,500 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 £6,000 a year. Company B is not in any way related to Company A.
Even though her total earnings are now £27,500 a year, neither employer has to deduct student loan repayments as each is within the £26,575 threshold.
However, if Emily were required by HM Revenue & Customs (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 £27,500. There is more on Self Assessment later in this section.