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Student Loan thresholds 2018-19

It’s never too soon to start looking forward to the new tax year. The Student Loans Company (SLC) website has confirmed the Student Loan annual thresholds that we will have to operate from 2018-19 tax year.

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  • Plan 1 will be £18,330
  • Plan 2 will be £21,000

 

It’s nice to see this in print. However, we could have ascertained this information anyway.

 

Plan 1

 

Provisions in the Education (Student Loans) (Repayment) Regulations 2009 and Northern Ireland equivalent say that the Plan 1 threshold to apply in the following tax year is calculated as follows:

 

  • Take the current year’s repayment threshold (£17,775).
  • Apply to Retail Price Index measure of inflation at March 2017 (3.1%).
  • Round up to the nearest £5.

 

So:

 

  • £17,775 + 3.1% = £551.03.
  • Rounded up to the nearest £5 which is £18,330.

 

Plan 2

 

We already knew the Plan 2 Student Loans threshold will be frozen at £21,000. The above legislation says so. Unless government policy changes, it will stay at this figure until at least April 2021, at which time it will be reviewed.

 

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