Student loan Plan 1 repayment threshold increase for 2016
16 December 2015
HMRC’s latest Employer Bulletin confirms that the existing student loan threshold will increase to £17,495 from 6 April 2016.
Student Loan Plan 1 threshold increase applying from 6 April 2016
The following information relates to the uprating of the existing student loan threshold (Plan 1 loan) from 6 April 2016.
Amending regulations (SI 2011/784) are in force which state that the annual repayment threshold will rise annually from 6 April 2012 by the Retail Prices Index (RPI).
The current threshold for the tax year ending 5 April 2016 is £17,335 and the Department for Business, Innovation and Skills have confirmed that from 6 April 2016 the threshold for pre 2012 loans will rise by 0.92% to £17,495.
This figure will apply to all current borrowers with pre 2012 loans (Plan 1 loans) for whom employers make Student Loan deductions.