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1ST APRIL 2019 STUDENT LOAN THRESHOLD CHANGE
Employers are required to deduct student loan repayments through the PAYE system when an employee completes a Tax code declaration (IR 330) using one of these codes: M SL, ME SL, S SL, SH SL, SB SL or ST SL.
Employees with student loans who only have one main job should use the M SL or ME SL tax code.
This code includes student loan deductions which are set at 12 cents in the dollar for every dollar earned over the repayment threshold:
Employers also need to deduct student loan repayments at this rate from redundancy and lump sum payments.
Employees with student loans who only have one main job should use the M SL or ME SL tax code.
This code includes student loan deductions which are set at 12 cents in the dollar for every dollar earned over the repayment threshold:
| Threshold period |
Threshold 1 Apr 2018 to 31 Mar 2019 |
Threshold 1 Apr 2019 to 31 Mar 2020 |
Increase |
| Annual |
$19,448.00 |
$19,760.00 |
$312.00 |
| Weekly |
$374.00 |
$380.00 |
$6.00 |
| Fortnightly |
$748.00 |
$760.00 |
$12.00 |
| Four weekly |
$1,496.00 |
$1,520.00 |
$24.00 |
| Monthly |
$1,620.66 |
$1,647.00 |
$26.00 |