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How Creatives & Employers Should Prepare for Upcoming Changes in Student Loan Plan 5 and Payrolling Benefits in Kind
April 2026 ushers in new student loan repayment rules and revisions to how benefits-in-kind must be reported; this article guides both creatives and employers through what’s coming and how to get ready.
By NomadicTax Research Team • 5-8 min read • April 5, 2026
## What’s New in Student Loan Plan 5 and Benefits Reporting
From **6 April 2026**, HMRC will introduce **Student Loan Plan 5**, which brings in a new repayment plan for borrowers. At the same time, changes around **payrolling benefits in kind (BiKs)** are being formalised. Employers will transition to mandatory payrolling of most BiKs, with voluntary registration closing before the 2026-27 tax year. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update?utm_source=openai))
## Employers: Responsibilities & Timing
* Employers will receive **student loan start notices** in **March 2026** for employees who fall under Plan 5 beginning April. These notices tell employers which plan type to deduct under PAYE. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update?utm_source=openai))
* For benefits in kind, voluntary payrolling registration must be done before **5 April 2026**. After that, most employers will be required to payroll BiKs beginning in **April 2027**. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update?utm_source=openai))
## What Employers Should Do Now
1. **Audit existing benefits in kind** being provided (e.g., cars, accommodation, loans) and analyse which ones will require payroll deduction.
2. **Register voluntarily** if planning to payroll before mandatory deadline; complete registration by **5 April 2026**.
3. **Ensure payroll systems are updated** to handle student loan deductions under Plan 5, which may have different thresholds or rules.
4. **Train finance/payroll teams**, or engage agents familiar with upcoming rules, to avoid mis-deductions.
## Impact on Creative Sector & Payments for Reliefs
Creative Industries reliefs and expenditure credits will see changes too—companies must include the new CT600P page when submitting Corporation Tax returns from 6 April 2026, along with an updated additional information form. This is especially relevant for film, arts, and related businesses. ([gov.uk](https://www.gov.uk/government/publications/agent-update-issue-140/issue-140-of-agent-update?utm_source=openai))
## Example Scenarios
* *Tiny PR agency, “Aura Ltd”* gives staff a company car and pays for their gym membership as a perk. From April 2027, these benefits will need to be payrolled with deductions at source. Aura Ltd should register voluntarily in 2026 to smooth the transition.
* *Danielle*, with a student loan Plan 5, starts a new job in May 2026 and receives her loan start notice; her employer uses the correct Plan 5 deduction codes.
## Key Actions Checklist
| Task | Deadline | Responsible Party |
|------|----------|--------------------|
| Student Loan Plan 5 start notices | March 2026 | Employers / Payroll teams |
| Register for voluntary BiK payrolling | By 5 April 2026 | Employers |
| Update payroll and reporting software | By end of Q1 2026 | Employers / Agents |
| Train/staff briefing | Ongoing before April 2026 | HR / Payroll |
These changes might seem small to some, but with many employees affected and financial penalties possible, proactive compliance is critical.Standards from 2026-27 and beyond will assume these norms are in place—don’t get caught behind.