Payroll 2026 · Plan 5 default

Employee cannot confirm their student-loan plan? Use the 2026 default only until authoritative details arrive.

Keep the starter answer, account confirmation, payroll setup and later SL1 as separate evidence. A temporary default must not become a permanent undocumented setting.

Direct answer

HMRC guidance says that from 6 April 2026, if an employee with a student loan cannot identify Plan 1, 2 or 4, payroll uses Plan 5 until an SL1 provides the correct plan; multiple plans use the lowest recovery threshold until notice.

Current HMRC notices, payroll software and GOV.UK guidance control. This is not payroll or tax advice.

Source checked 1 August 2026: HMRC employer guidance, updated 6 April 2026.

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student loan Plan 5 default until SL1 checklist

Help UK payroll teams control a new 2026 default. Updated 2026-08-01.

Seven-day HMRC review · 2026-08-08

Use Plan 5 only in the stated default case while waiting for SL1

Direct answer: HMRC says that when an employee cannot identify whether they have Plan 1, 2 or 4, payroll should use Plan 5 until an SL1 arrives. The default does not replace a known plan, an SL1 instruction or separate postgraduate-loan handling.

Employee declaration and start date retained
Known plan information checked before defaulting
Temporary Plan 5 setup and first deduction recorded
SL1 monitored and payroll updated when received

HMRC guidance, last updated April 6, 2026, was rechecked August 8, 2026. HMRC notices and payroll records control; this is not payroll or tax advice.

Checklist controls

Control	What to verify	Evidence
Starter	Employee has a student loan but plan is unknown.	Checklist.
Default	Plan 5 used only in the eligible unknown-plan case.	Audit note.
Notice	SL1 plan and effective payday.	SL1.
Correction	Payroll/FPS outcome after notice.	Report.

Scope

Not every unknown loan uses this route.

Postgraduate loans and known plans remain distinct.

Temporary

Diary the missing SL1.

Review the setting when authority arrives.

Limit

Do not invent refunds.

Use the official correction route.

Plan 5 temporary-control record

Save starter answers.
Record why the plan is unknown.
Apply the official temporary rule.
Diary and process the SL1.
Verify the next FPS and payslip.

FAQ

Is Plan 5 now the default?: From 6 April 2026 HMRC uses it for the specified unknown Plan 1, 2 or 4 case.
What if an SL1 arrives?: Use its plan type at the next available payday as directed.
Is this payroll advice?: No.

Updated 2026-08-01. This page is independent and does not replace official services, professional advice or site-specific rules.