1. Existing start notifications for starts from 6 April 2015 2. New start notifications issued for starts from 6 April 2016 stating the borrower repayments should be based on Plan 1 3. New start notifications issued for starts from 6 April 2016 stating the borrower repayments should be based on Plan 2
Notifications stated in 2 and 3 will be issued in sufficient time to allow employers to start deductions from 6 April 2016.
Where an employee has both a Plan 1 loan and a Plan 2 loan, the repayments work slightly differently.
There is no repayment on earnings below the Plan 1 threshold.
The repayment on earnings between the Plan 1 threshold and the Plan 2 threshold are calculated as for Plan 1 and applied to the Plan 1 loan.
The repayment on earnings above the Plan 2 threshold are calculated as for Plan 2 and applied to the Plan 2 loan.
This means that the repayment for the Plan 1 loan remains constant at the Plan 2 threshold level and does not increase with earnings.
Postgraduate Study Student Loans Consultation published
27 March 2015
The Department for Business Innovation and Skills has published a consultation on postgraduate study student loans.
The consultation document is seeking views on a proposed loan system for postgraduate taught master’s students. Under the scheme, anyone under 30 who is eligible and accepted to study will be able to apply for a loan of up to £10,000.
The evidence and responses will inform the design and final terms of the proposed loan scheme.
CIPP comment The CIPP’s Policy Team will be issuing a survey very shortly to collect member views.
Tax Agents and Advisers
HMRC Agent Update 40
27 February 2014
HMRC have published the latest issue of the Agent Update which is the bi-monthly round up of the latest developments in tax, HMRC service and consultations for accountants and tax professionals.
This month’s top articles include:
CIPP Policy News Journal
08/04/2015, Page 487 of 521
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