Telephone: 01270 899112

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

WHAT?

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.

HOW?

HMRC will be introducing a new starter checklist with an additional box for the new postgraduate loan type.

WHEN?

Increases to threshold and introduction of the PGL will come into force from 6th April 2019.

If you’re worried about keeping up to date with changes like this, sign up to our newsletter so you don’t miss a thing…