15 Mar Student Loans – what are the changes in 2016
Student Loans – Changes coming 2016
From April 2016 a new student loan threshold of £21,000 will be introduced and will be known as Plan 2 loan. Anyone currently paying through the existing scheme will be unaffected by the changes and those existing loans will be known as Plan 1 loan.
If any of your employees are repaying a student loan pre this change it must be identified on any paperwork and when submitting to HMRC they will ask on the starter declaration list about the loan plan they are on. A P45 form wont show which plan they are on – just that they are paying a student loan – so be sure to ask in the future when they took out their loan and what student loan plan they have!
Our payroll software calculates all deductions at point of processing and then we file automatically with HMRC via our online software secure portal.
We can handle all those complicated payroll deductions at the press of a button and ensure you comply with all current legislation on filing with HMRC to make sure you don’t get any penalties or fines.