HMRC has outlined the Student Loan thresholds from 6 April 2019.
The current thresholds for the tax year 2018/19 are:
- Plan 1 – £18,330
- Plan 2 – £25,000.
The Department for Education (DfE) has confirmed that from 6 April 2019 the thresholds will increase to:
- Plan 1 – £18,935
- Plan 2 – £25,725.
Student loan deductions will remain the same, at nine per cent for Plan 1 and Plan 2 loans.
Further details have also been released about Postgraduate Loans (PGLs). The earliest repayment of PGL can start is April 2019. DfE has confirmed the student loan threshold for PGL for England and Wales will be £21,000, with deductions being taken at six per cent.
HMRC intends to issue more detailed guidance about PGLs on GOV.UK in the lead up to 6 April 2019.
