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Student loans, policy change and the implications for payroll

Student loans, policy change and the implications for payroll
Jack Simpson
Written by Jack Simpson
Friday, 13 October 2017 10:45

There can be little dispute that the 2017 General Election was a political event of vast significance. Indeed, a key reason cited for the Conservatives’ loss of their parliamentary majority was a failure to connect with young voters.

In the wake of this, we have, this Autumn, seen the Government announce a change of policy on student loan repayments, which has a direct impact on payroll.

The substance of this change in policy is that, effective from the start of the 2018/19 financial year, the wage threshold – from which the repayment of student loans becomes applicable – will increase from £17,775 to £18,330 for Plan 1 borrowers; for those on Plan 2, meanwhile, it will rise from £21,000 to £25,000. This has effect for all current and future student loan borrowers.

For a graduate like myself, this is, of course, very positive news – however, for those running payroll, it constitutes a further, forthcoming legislative development, which must be prepared for.

As with all statutory changes – however big or small – Dataplan Payroll will be ready, ensuring total compliance for our 1400+ customers. We know that employers want to focus on their core business aims – and keeping a track of legislative change can be a major distraction from doing so. This is especially true at a time when factors such as Brexit mean the policy landscape is in a state of major flux.

So, if you’re an employer running your own payroll – and could do without the hassle of adapting to policy shifts on student loans and other areas – there really never has been a better time to outsource to Dataplan.

To discuss a quote, chat to a payroll superhero today on 03331123456.

Jack Simpson

After completing his studies at the University of Warwick, Jack joined Dataplan in September 2015 as a Graduate Trainee Payroll Professional. Prior to this, he performed a holiday job at FB Wealth Management Limited, Dataplan’s sister company, on four separate occasions.

Outside of work, Jack is a follower of Nottingham Forest Football Club and takes a keen interest in politics and current affairs.

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