the end of year declaration questions (Para 7, Schedule A1 to the PAYE regulations). So naturally, we expect all employers to comply with the law.
Employers who do not set this indicator and complete these questions but otherwise comply with all other obligations on time may not receive a filing penalty; but they will be missing an opportunity to demonstrate their lower tax risk status to HMRC and may find themselves more likely to be subject to Employer Compliance review as a consequence.“
Student loan repayment threshold for tax year 2015-16
13 January 2014
HMRC announced in their October 2014 edition of Employer Bulletin that from 6 April 2015 the student loan threshold will rise from £16,910 to £17,335.
HMRC’s Software Developers Support Team has confirmed that the 2015-16 pay frequency equivalents for student loan borrowers in the Plan 1 Income Contingent Repayment (ICR) scheme are:
Annual - £17,335 Monthly - £1,444.58 4 weekly - £1,333.46 2 Weekly - £666.73 Weekly - £333.36.
Concurrent student loan repayments
19 March 2015
A CIPP member recently asked for clarification on the situation where an employee has both a Plan 1 and Plan 2 student loan.
Background From 2016 student loan repayments will be calculated against two thresholds depending on the year and where in the UK the loan was taken out. In addition to the existing threshold, currently £16,910 (from 6 April £17,335) a new threshold of £21,000 will be introduced to the student loans repayment process to handle the collection of the new Higher Education loans (England and Wales only) and accommodate 24+ Advanced Learning loans (England only).
Loans taken out with the £16,910 threshold will be referred to as ‘Plan 1’ and those with the new £21,000 threshold will be referred to as ‘Plan 2’.
Student loan deductions will only be made on one plan type at any time and can change between plan types in-year.
Employers will need the capability to make sure they know which threshold should be applied from 6 April 2016 to make the student loan deductions for either Plan 1 or Plan 2 loans and to return the repayment information into HMRC as they do currently through their payroll submissions.
During the tax year 2015-2016 HMRC will send out three types of start notifications:
CIPP Policy News Journal
08/04/2015, Page 486 of 521
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