With only a couple of weeks to go before the start of the new tax year, on 16 March, HMRC published guidance on the operation of student loans from April 2016. This is when we see the introduction of the new “Plan 2” student loans to run alongside the current Plan 1 loans.
Guidance on student loan repayments was first published in July 2014 and this has been updated to reflect the operation of Plan 1 and Plan 2 loans by employers from this April.
For information purposes, the thresholds from 6 April are as follows:
plan 1 with a 2016 to 2017 threshold of £17,495 (£1,457 a month or £336 per week) plan 2 with a 2016 to 2017 threshold of £21,000 (£1750 a month or £403 per week)