UK Student Loan update

UK Student Loan plan thresholds set to increase

April 6th 2018 will see the UK’s HMRC Student Loans thresholds increase. Currently, until April 5th 2018, the Plan 1 loan threshold is £17,775 while the Plan 2 threshold is £21,000.

In the next UK tax year (i.e. from April 6th 2018) the Plan 1 loan threshold will increase by just over 3% to £18,330 while the Plan 2 threshold will increase by 19% to £25,000.

So what do employers you need to do?

When you’re making student loan deductions in the next tax year, be sure to apply this increase to ALL borrowers, including current and future borrowers.

If you’re using payroll software be sure to check with your provider to ensure that the increase is implemented and then continue to report these deductions to HMRC. However if you’re a client of Paycheck Plus then you won’t need to do anything – we will implement these changes and continue to ensure that you are compliant with the most up-to-date regulations.

Further information on UK Student Loan:

Student Loan repayments: guidance for employers

Repaying your student loan

 

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