Student Loan threshold changes from April 2018 9 October 2017
Further to the previous notification of a threshold change for Student Loan borrowers, HMRC has confirmed that the Plan 2 repayment threshold will rise from £21,000 to £25,000 from 6 April 2018.
The following update was provided by HMRC Student Loans specialists to the Software Developers Support Team:
“ Notification of a threshold change for student loan borrowers in the current Income Contingent Repayment (ICR) scheme.
The current threshold for 2017-18 for Plan 1 is £17,775 and for Plan 2 is £21,000 and the Department for Education have confirmed that from 6 April 2018 the threshold for
Plan 1 loans will rise to £18,330 and
Plan 2 loans will rise to £25,000.
This figure will apply to all current and future borrowers for whom employers make Student Loan deductions.
Software developers are being notified as early as possible in order that software changes can be made ready for implementation on 6 April 2018.”
The £21,000 repayment threshold for Plan 2 student loans was to be fixed until 2021. The threshold change comes after the Prime Minister announced at the recent Conservative party conference, changes to the student finance system, widely seen as an attempt to attract young voters. According to BBC News more changes may be on the way as the government says it is looking at the entire student finance system over the coming months.
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SIPS and ETS - planned outage 11 October 2017 10 October 2017
The Government Gateway ISV (VSIPS) and Transaction Engine (ETS) test services will be unavailable from 10:00 until 13:00 on Wednesday 11 October.
Software developers will still be able to use TPVS and LTS as these test services will be unaffected during this time.
HMRC apologises for any inconvenience caused.
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Test service updates for PAYE RTI and DPS 23 October 2017
HMRC’s Software Developers Support Team (SDST) has confirmed that the online test services (TPVS, ETS and VSIPS) have been updated to support version 1.1 of the 2018/19 RTI RIM artefacts.
This update includes the new rule on the FPS message to mandate the inclusion of the ‘PlanType’ attribute when a Student Loan repayment in the pay period (data item 67) is being reported.
Version 1.1 of the 2018/19 artefacts are also available to download from the LTS Update Manager into the Local Test Service.
The Data Provisioning Service (DPS) test service has also been updated to include notifications relating to the forthcoming 2018/19 tax year.
The SDST Team can be contacted by email at sdsteam@hmrc.gsi.gov.uk with any queries about these updates.
The Chartered Institute of Payroll Professionals
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