Student And Postgraduate Loans
Student Loan and Postgraduate Loan Thresholds: –
The thresholds for Plan 1 and Plan 2 Student Loans are increasing from 6th 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 are calculated at 9% for Plan 1 and Plan 2 loans.
- Postgraduate Loan (PGL) threshold will remain the same at £21,000. PGL deductions are calculated at 6%.
Changes To The Coding-Out Of Debt Via Self Assessment:
From March 2020, HMRC will modernise this coding-out system for recovering outstanding debts relating to Self Assessment, by changing a customer’s tax code to automatically deduct payments from their PAYE earnings and to start to recover these outstanding debts immediately.
HMRC will start to deduct payment immediately and automatically, within the current tax year. If they cannot collect all the debt in the current year then some of the outstanding debt may also be collected the following year.
Marriage Allowance lets one partner transfer ten percent of their Personal Allowance – currently £1,250 – to their husband, wife or civil partner if they earn more than them.
They can benefit from Marriage Allowance if all the following apply: –
- They’re married or in a civil partnership.
- They do not pay income tax (for example, their income is below the Personal Allowance – currently £12,500).
- Their partner pays income tax at the basic rate, which usually means their income is between £12,501 and £50,000 (£43,430 in Scotland).
They can backdate their claim by up to four years, currently to include any tax year since 5th April 2015 that they were eligible for Marriage Allowance.