Correction to Starter Checklist amendments for Student Loan plan types 4 December 2015
On 23 November we published text supplied by HMRC’s Software Developers Support Team (SDST) which will replace the student loan question in the current starter checklist.
SDST has alerted us to a small error in their text within question 4. It should read “… on or after 1 September 2012.” Revised text is below and our original news piece has also been revised.
The Starter Checklist for 2016/2017 is to be amended to allow for the Plan 1 and 2 student loan repayment types coming into effect in April 2016. The following text will replace the student loan question in the current starter checklist .
1. I have a Student Loan which is not fully repaid
Yes X No X
If you answer yes to statement 1, please go on to statement 2.
2. I am repaying my Student Loan direct to the Student Loan Company by agreed monthly payments and my employer shouldn't deduct loan repayments from my pay.
Yes X No X
If you answered yes to statement 2, you do not need to answer statements 3 or 4.
3. I have a Plan 1 Student Loan
Yes X No X
You will have a Plan 1 Student Loan if:
You lived in Scotland or Northern Ireland when you started your course, or You lived in England or Wales and started your course before 1 Sept 2012.
4. I have a Plan 2 Student Loan
Yes X No X
You will have a Plan 2 Student Loan if:
You lived in England or Wales and started your course on or after 1 September 2012.
5. I finished my studies before the last 6 April
Yes X No X
Student loan Plan 1 repayment threshold increase for 2016 17 December 2015
HMRC’s latest Employer Bulletin confirms that the existing student loan threshold will increase to £17,495 from 6 April 2016.
Student Loan Plan 1 threshold increase applying from 6 April 2016
The following information relates to the uprating of the existing student loan threshold (Plan 1 loan) from 6 April 2016. Amending regulations (SI 2011/784) are in force which state that the annual repayment threshold will rise annually from 6 April 2012 by the Retail Prices Index (RPI).
The current threshold for the tax year ending 5 April 2016 is £17,335 and the Department for Business, Innovation and Skills have confirmed that from 6 April 2016 the threshold for pre 2012 loans will rise by 0.92% to £17,495.
This figure will apply to all current borrowers with pre 2012 loans (Plan 1 loans) for whom employers make Student Loan deductions.
CIPP Policy News Journal
25/04/2016, Page 434 of 453
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