Student Loans were far too simple, so now we have Plan 1, Plan 2 and a new loan type… AND from April 2019 we also have threshold changes…
• 2018/19 annual threshold for Plan 1 deductions is £18,330 (if studies were started before 1st September 2012). This threshold will rise to £18,935 in April 2019. Calculations remain at 9% of any earnings above the threshold.
• 2018/2019 annual threshold for Plan 2 deductions is £25,000 (if studies began on or after 1st September 2012). This threshold will rise to £25,725 in April 2019. Calculations remain at 9% of any earnings above the threshold.
New Loan Type;
• Postgraduate loans will come into repayment on 6th April 2019.
• Annual threshold for this loan will be £21,000 a year and repayments will be made at 6% of earnings above the threshold. These loans will have to be paid back in addition to a Plan 1 or Plan 2 undergraduate loan.
HMRC will be introducing a new starter checklist with an additional box for the new postgraduate loan type.
Increases to threshold and introduction of the PGL will come into force from 6th April 2019.