It has been confirmed that the student loan repayment threshold will rise to £18,330 for Student Loan Plan 1 for the new tax year 2018-19 by the Student Loans Company. This will come into effect from 6th April 2018. Student Loan Plan 1 is for pre-2012 loans and the current 2017-18 threshold is £17,775. This new threshold will apply to all borrowers who have a Plan 1 loan for whom employers make student loan deductions.
For Student Loan Plan 2, which is for post 2012 loans, there will be no change to the current threshold of £21,000 in the new tax year. There is no change to the student loan repayment threshold for postgraduate loans, which is also £21,000.
In BrightPay 2018-19, the new student loan repayment thresholds for Plan 1 will automatically be calculated and the appropriate student loan deduction applied.