From the 6th April 2019, HMRC has confirmed it will increase the threshold at which student loan repayments are made.
The current thresholds for the 2018/2019 tax year are:
- Plan 1 – £18,330
- Plan 2 – £25,000
The Department for Education (DfE) has confirmed from 6 April 2019 the thresholds will be:
- Plan 1 – £18,935
- Plan 2 – £25,725
The percentage deducted will remain the same - currently 9% of anything earned over the threshold.
What about Postgraduate Loans?
The earliest repayment of a PGL can start is April 2019. The threshold for England and Wales is expected to be £21,000, with deductions being taken at six per cent above this amount.
HMRC will provide further information about PGLs in the run-up to the new tax year.