Plan 4 on £42,000 in Scotland
Updated 12 November 2026 · Tax year 2026/27 · Scotland · No pension · Plan 4 only
Scope: Plan 4 only (Scottish SAAS loans).
Plan 4 is the Scottish undergraduate student loan. In this model the 2026/27 threshold is £33,795 and the rate is 9% above it — a higher threshold than Plan 1 (£26,900), Plan 2 (£29,385) or Plan 5 (£25,000). Because the borrower in this example lives in Scotland, income tax uses the Scottish bands. Employee National Insurance stays on the UK scale. A Plan 4 deduction on an English tax code would be a different page; this one does not do that.
Worked example — £42,000, Scottish tax, Plan 4
Ewan earns £42,000 in Scotland. No pension. Personal allowance £12,570, so taxable pay is £29,430. That reaches the Scottish intermediate band (21%, which runs to £43,662) but not the Scottish higher rate at £43,663. Plan 4 only sees the £8,205 above £33,795.
- Scottish income tax: £5,971.07 — starter 19% £753.73 on £3,967, basic 20% £2,597.80 on £12,989, intermediate 21% £2,619.54 on £12,474
- Employee National Insurance (UK): 8% × (£42,000 − £12,570) = £2,354.40
- Plan 4: 9% × (£42,000 − £33,795) = 9% × £8,205 = £738.45
- Take-home: £32,936.08 a year (£2,744.67 a month)
Without the loan the same Scottish salary comes to £33,674.53. The loan, not the tax bands, accounts for the £738.45 gap. On an English tax code the income tax at £42,000 would be lower (still all at 20%), but this page keeps Scotland on so the illustration matches a Plan 4 borrower working in Scotland.
At £32,000, the salary used on the Plan 1 guide, Plan 4 would deduct £0 because £32,000 is under £33,795. Plan 1 at that salary deducts £459.
Monthly repayments by plan — 2026/27
Approximate monthly deduction at each salary, worked on the year and divided by 12. Thresholds: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 (all 9%); Postgraduate £21,000 (6%). A postgraduate loan is taken on top of any undergraduate plan.
| Salary | Plan 1 | Plan 2 | Plan 4 | Plan 5 | Postgrad |
|---|---|---|---|---|---|
| £25,000 | £0.00 | £0.00 | £0.00 | £0.00 | £20.00 |
| £30,000 | £23.25 | £4.61 | £0.00 | £37.50 | £45.00 |
| £35,000 | £60.75 | £42.11 | £9.04 | £75.00 | £70.00 |
| £40,000 | £98.25 | £79.61 | £46.54 | £112.50 | £95.00 |
| £45,000 | £135.75 | £117.11 | £84.04 | £150.00 | £120.00 |
| £50,000 | £173.25 | £154.61 | £121.54 | £187.50 | £145.00 |
| £60,000 | £248.25 | £229.61 | £196.54 | £262.50 | £195.00 |
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Plan guides: Plan 1 · Plan 2 · Plan 4 · Plan 5 · Postgraduate loan
Plan 4 repayments by salary
Plan 4 takes 9% of pay above £33,795. This table shows the annual and monthly deduction and the take-home that remains (Scottish income tax).
| Salary | Repaid a year | A month | Take-home a year |
|---|---|---|---|
| £34,000 | £18.45 | £1.54 | £27,976.08 |
| £36,000 | £198.45 | £16.54 | £29,216.08 |
| £39,000 | £468.45 | £39.04 | £31,076.08 |
| £44,000 | £918.45 | £76.54 | £34,105.10 |
| £54,000 | £1,818.45 | £151.54 | £38,428.90 |
| £64,000 | £2,718.45 | £226.54 | £43,128.90 |
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Frequently asked questions
When do I start repaying Plan 4?
When pay is above £33,795 a year (£2,816.25 a month). Employers deduct it through PAYE each pay period.
How much is Plan 4 on £43,795?
9% × £10,000 = £900.00 a year, £75.00 a month.
Is anything taken if I earn below the Plan 4 threshold?
Not on a steady salary. Repayments are 9% of pay above £33,795 a year, worked out each pay period, so in a normal month below the monthly threshold nothing is deducted. A single month with a bonus or overtime can go above the monthly threshold and trigger a deduction for that month, even if your yearly pay stays below £33,795.
Why does my payslip differ from this calculator?
The calculator models a whole tax year on a standard 1257L tax code. Your payslip is worked out pay period by pay period, so a different or emergency tax code, a bonus month, overtime, benefits in kind or a different pension arrangement will move the figure. National Insurance and student loan repayments are also assessed each pay period rather than across the year. If the two disagree, trust the payslip and check your tax code in your HMRC personal tax account.
Run £42,000 in Scotland with Plan 4
Second example — Plan 4 on £38,000 in Scotland, month by month
Assumptions: 2026/27 · £38,000 gross, paid in 12 equal monthly amounts · Scottish tax bands · no pension · Plan 4 only · NI modelled on the year.
£38,000 is only £4,205 above the Plan 4 threshold, so the deduction is modest. Taxable pay is £25,430, which still reaches the 21% intermediate band.
- Scottish income tax: £753.73 starter + £2,597.80 basic + 21% × £8,474 (£1,779.54) = £5,131.07 (£427.59 a month)
- Employee NI: 8% × (£38,000 − £12,570) = £2,034.40 (£169.53 a month)
- Plan 4: 9% × (£38,000 − £33,795) = 9% × £4,205 = £378.45 (£31.54 a month)
- Take-home: £30,456.08 a year (£2,538.01 a month)
Compared with Plan 1 at the same Scottish salary (threshold £26,900): Plan 1 would take 9% × £11,100 = £999.00 (£83.25 a month), leaving £29,835.53. Plan 4 leaves £620.55 a year more, about £51.71 a month. That is the £6,895 threshold gap at 9%.
What this means: on Plan 4 a salary in the mid-£30,000s repays only a few pounds a month. Each £1,000 of pay above £33,795 adds £90 a year. Try your own salary with Scotland on in the calculator, or see the take-home pay table.
What this page does not decide
It does not assign you to Plan 4. The Student Loans Company does. It does not model a postgraduate loan on top, and it does not give a Scottish tax residence opinion.
Sources (checked 12 November 2026): HMRC rates and thresholds for employers 2026 to 2027; Scottish income tax bands in the site engine. National Insurance is modelled on the year, not each pay period.