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Off-payroll working in the public sector: reform for fee-payers Student Loan repayments: guidance for employers
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Student loan repayments Plan 1 threshold for 2018 – 19 23 August 2017
Amending regulations (SI 2011/784) are in force which state that the annual repayment threshold will rise annually by the Retail Prices Index (RPI).
The current repayment threshold for 2017-18 for Plan 1 is £17,775 and the student loans company has confirmed that from 6 April 2018 the repayment threshold for pre-2012 loans will rise to £18,330 for Plan 1.
The repayment threshold for post-2012 (plan 2) loans will remain at £21,000 and the repayment threshold for postgraduate loans continues to be £21,000.
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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.
Student finance update 11 December 2017
A written ministerial statement confirms the student loan earnings threshold above which individuals are required to make contributions to the cost of their education from April 2018 and also the maximum tuition fees for the 2018/19 academic year.
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