April 6th 2018 will see the HMRC Student Loans thresholds increase. Currently, until April 5th 2018, the Plan 1 loan threshold is £17,775 while the Plan 2 threshold is £21,000.
In the next tax year (i.e. from April 6th 2018) the Plan 1 loan threshold will increase by just over 3% to £18,330 while the Plan 2 threshold will increase by 19% to £25,000.
When you’re making student loan deductions in the next tax year, be sure to apply this increase to ALL borrowers, including current and future borrowers.
If you’re using payroll software be sure to check with your provider to ensure that the increase is implemented and then continue to report these deductions to HMRC. However if you’re a client of Paycheck Plus then you won’t need to do anything – we will implement these changes and continue to ensure that you are compliant with the most up-to-date regulations.
Here at Paycheck Plus we offer complete and comprehensive payroll management, and this includes ensuring that our client’s payroll is compliant with the most up-to-date payroll legislation. Our payroll specialists provide award winning payroll management and support that ensures that payroll functions operate effectively and compliantly. This means that our clients can focus more on profits rather than paperwork.
For expert payroll support contact Paycheck Plus now.
Paycheck Plus – Payroll Excellence