20 May Student and Postgrade Loan Thresholds
Student & Postgraduate Loans
In April 2020 the Student Loan and Postgraduate Loan Thresholds will increase. Both Apprenticeship Levy and Student loan deductions will continue where applicable if the employee is furloughed. Grants for the Job Retention Scheme do not cover these.
Payroll can be complicated with many considerations. Here at EA Assist we can provide a payroll support package to suit you and your business. Get in touch with us now on 01379 646943 or email email@example.com to find out more.
If you are calculating your own payroll please read on regarding the Student Loan deductions.
Student and Postgraduate Loans
From April 2020 the Department for Education has confirmed that the thresholds will increase to:
- Plan 1 – £19,390
- Plan 2 – £26,575.
Student Loan deductions will be calculated at 9% for Plan 1 and Plan 2 loans.
Postgraduate Loan threshold will remain the same at £21,000.
- Postgraduate Loan deductions will be calculated at 6%.
Student and Postgraduate Loan start notice (SL1/PGL1)
It is important that you take the right action to start Student and or Postgraduate Loan (PGL) deductions as soon as possible and that you record the deductions correctly RTI/HMRC submissions.
This ensures that your employee does not pay any more or less than they have to.
If you receive a Student Loan and or PGL start notice (SL1/PGL1) from HMRC, it is important that you check and use the correct: –
- loan/plan type on the start notice.
- start date shown on the notice and take deductions from the next available pay day.
If the earnings are below the Student Loan and/or PGL thresholds, update the employee’s payroll record to show they have a Student Loan and/or PGL and file the start notice. Deductions should continue until HMRC notifies you to stop. Further information can be found here.
Alternatively you can call us. We can help to run and submit your payroll. Our knowledgeable and experienced staff will be able to ensure you get your payroll correct for staff and HMRC filing.
Give us a call now on 01379 646943 or drop an email to: firstname.lastname@example.org to find out how we can help you with your payroll function. To find out more about EA Assist Payroll visit our website here.