By Ian Holloway, head of legislation and compliance at Cintra HR & Payroll Services
I have some news that is almost good.
Anyone that reads my ramblings will know that I have queried HMRC’s guidance on the Gov.uk website Student loan repayments: guidance for employers which incorrectly quotes the 2016-17 thresholds as follows:
• Plan 1 with an annual threshold of £17,495 (£1,457 a month or £336 per week)
• Plan 2 with an annual threshold of £21,000 (£1750 a month or £403 per week)
Indeed, I query any publication or fact card that quotes these thresholds. If it does quote them, I maintain it is a misrepresentation of the facts when they should be quoted as follows:
• Plan 1 with an annual threshold £17,495 (£1,457.91 per month / £336.44 per week)
• Plan 2 with an annual threshold £21,000 (£1,750.00 per month / £403.84 per week)
I know it’s only pennies. However, to quote as fact that the thresholds are in round pounds is preventing UK payroll professionals being able to perform a manual calculation – yes, believe it or not we do still want to do manual calculations, regardless of how I am constantly being told that we don’t need to because payroll software does it for us.
Up until Friday 22 April, HMRC’s SL3 tables agreed with me regarding the Plan 1 thresholds but, strangely, omitted Plan 2 thresholds altogether. In recognition that the tables were incomplete, HMRC updated them. Why is this not 100% good news? The weekly threshold for Plan 2 is quoted as £403.85 and not £403.84.
Just one less penny and I will be totally happy!
Posted on 27th April 2016 by Jerome Smail
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