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)
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)
- 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)
What Employers Should Do Now
- Audit existing benefits in kind being provided (e.g., cars, accommodation, loans) and analyse which ones will require payroll deduction.
- Register voluntarily if planning to payroll before mandatory deadline; complete registration by 5 April 2026.
- Ensure payroll systems are updated to handle student loan deductions under Plan 5, which may have different thresholds or rules.
- 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)
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.