Convert student loan thresholds across different pay frequencies. Understand why deductions vary period-to-period and the impact of pay frequency on your repayments.
Critical Rule: Each pay period is assessed independently against that period's threshold.
Not Annualized: PAYE doesn't look at your annual income when calculating deductions.
Variable Impact: High earnings in one period = higher deduction that period, regardless of other periods.
Convert annual thresholds to any pay frequency and see the PAYE impact.
Repayment rate: 9.0%
Every week (52 times per year)
For future planning or policy changes
| Pay Period | Periods/Year | Threshold |
|---|---|---|
WeeklySelected | 52 | £548 |
Fortnightly | 26 | £1,095 |
Four-weekly | 13 | £2,190 |
Monthly | 12 | £2,373 |
Quarterly | 4 | £7,118 |
Semi-annually | 2 | £14,235 |
Annually | 1 | £28,470 |
HMRC Official: Official thresholds may differ from calculated due to rounding rules
Difference: Positive = borrower-friendly (higher threshold), Negative = higher deduction
Important: This assumes consistent earnings every period. Variable pay will result in different deductions each period.
| Period | Gross Pay | Threshold | Deduction |
|---|---|---|---|
| Week 1 | £400 | £548 | £0.00 |
| Week 2 | £650 | £548 | £9.18 |
| Week 3 | £520 | £548 | £0.00 |
| Week 4 | £700 | £548 | £13.68 |
| Total | £2,270 | - | £22.86 |
Key Point: Each period is calculated independently. High pay in one period = high deduction that period, regardless of low pay in other periods.
| Pay Frequency | Gross Per Period | Deduction Per Period | Annual Total |
|---|---|---|---|
| Weekly | £673 | £11.26 | £585 |
| Monthly | £2,917 | £48.93 | £587 |
| Quarterly | £8,750 | £146.88 | £588 |
Maximum Difference: £2
Explanation: Differences arise from rounding in period-based calculations
For employees:
Understanding period thresholds helps explain why deductions vary with overtime, bonuses, or irregular hours. A £700 weekly payment results in £13.68 deduction.
For employers:
Payroll systems must calculate each period independently using the correct threshold. No annualization or averaging is allowed during the year.
For planning:
High earners should expect significant deductions in bonus periods. The period-based system can't differentiate between regular pay and one-off payments.
Understanding period-based calculations is crucial for managing student loan deductions effectively. Get official guidance on thresholds and repayment rules.