Increases to Student Loan Thresholds Article Image

Increases to Student Loan Thresholds

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.

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