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Are the inland revenue ripping off graduates
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funnkybunny
Posts: 1 Newbie
I recieved the below message through an email the other day is it true? 
For most unsuspecting graduates who are paying back their student loans, the inland revenue takes payments directly from your employer in the same way as they take tax. i.e. the more you earn the more you pay, this includes bonuses etc. However after taking monthly amounts
the inland revenue does not pay this directly to the student loan
company, instead they wait until the end of the financial year in
April and then pay the entire year off to student loans.
The effect of this is that the inland revenue hold on to your monthly
payments for up to a year earning themselves interest, during the same
period because student loans have not received these funds they in
turn charge the graduate interest on the outstanding amount even
though it has been paid to the inland revenue.
Bottom line is that for those in this position we pay interest to
student loans on money which has been taken from our accounts which
the inland revenue keeps and earns interest on.
Personally I didn't sign up for this and it makes me
MAD! I have researched this and there are others who have become
aware of this and I plan to join the fight!
As a start I strongly suggest you sign up to the on line petition
below. I am looking into the legality of what
is being done to us as I can see no other description
for this other than THEFT!!!!
Sign up now and join the fight. Send this to everyone! I will be
forwarding dates for the march on Parliament!
http://petitions.pm.gov.uk/Student-loans/
Kindest Regards,
Woody Bruce BSc Hons MRICS
Associate Director
Markham Vaughan Gillingham, 3 Fitzhardinge Street, London W1H
6EF
DDI: 020 7935 8750
TEL: 020 7935 6075
FAX: 020 7486 3556
I am a student who graduates next year. This doesn't sound very fair to me. The inland revenue make enough money from the income tax we have to pay them in employment, nevermind making money from use paying off our debts as well :rolleyes:
For most unsuspecting graduates who are paying back their student loans, the inland revenue takes payments directly from your employer in the same way as they take tax. i.e. the more you earn the more you pay, this includes bonuses etc. However after taking monthly amounts
the inland revenue does not pay this directly to the student loan
company, instead they wait until the end of the financial year in
April and then pay the entire year off to student loans.
The effect of this is that the inland revenue hold on to your monthly
payments for up to a year earning themselves interest, during the same
period because student loans have not received these funds they in
turn charge the graduate interest on the outstanding amount even
though it has been paid to the inland revenue.
Bottom line is that for those in this position we pay interest to
student loans on money which has been taken from our accounts which
the inland revenue keeps and earns interest on.
Personally I didn't sign up for this and it makes me
MAD! I have researched this and there are others who have become
aware of this and I plan to join the fight!
As a start I strongly suggest you sign up to the on line petition
below. I am looking into the legality of what
is being done to us as I can see no other description
for this other than THEFT!!!!
Sign up now and join the fight. Send this to everyone! I will be
forwarding dates for the march on Parliament!
http://petitions.pm.gov.uk/Student-loans/
Kindest Regards,
Woody Bruce BSc Hons MRICS
Associate Director
Markham Vaughan Gillingham, 3 Fitzhardinge Street, London W1H
6EF
DDI: 020 7935 8750
TEL: 020 7935 6075
FAX: 020 7486 3556
I am a student who graduates next year. This doesn't sound very fair to me. The inland revenue make enough money from the income tax we have to pay them in employment, nevermind making money from use paying off our debts as well :rolleyes:
0
Comments
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Remember that the Inland Revenue is not some company, but collects tax in order to enable government to provide services (such as universities). So any extra interest earned on this money goes to supporting things that we value (and for which we have voted) and helps keep the general tax bill down for everyone. True, it means that graduates are paying a little more interest than they would if the money were immediately credited to their loan account, but the interest on student loans is very heavily subsidised (by the taxpayer).0
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I think this is bollox actually, the payments from HMRC to the SLC to are backdated to the loan accounts.0
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Whether it is or not, the interest rate on student loans is government subsidised in any case so I don't think there's any case for moaning about it.0
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The reason for this is that employers (who collect the student loans with the tax you owe from your salary each month) file one return to the revenue each year-the P35. The employer will send a payment (including student loans)to the Revenue each month or quarter but the revenue will not know what they're actually receiving money for until the end of the year.
This means that in the current method of filing returns means that it would be silly for the revenue to guess how much of the potentially tens of thousands they receive from an employer is student loans. When the P35 is filed, they'll know exactly and can pay it over.0 -
Voyager2002 wrote: »So any extra interest earned on this money goes to supporting things that we value (and for which we have voted)
Like wars in the middle-east and renewing Trident you mean? Sorry, I didn't vote for either of these.
Political views aside, I don't agree with this argument; whatever the interest rate of the loan is, payments should still be credited when they are paid. I appreciate there is currently a logistical problem with this, but the whole system for collecting student loans is flawed anyway. It would make much more sense for the Inland Revenue to administer it, or for payments just to be made direct to the SLC. The fact that there are 3 parties involved just adds to the confusion and scope for error. No doubt this will increase when the loans are sold on as is planned.0 -
As long as the Student Loans Company continue to take payments from people who no longer owe them money I think this is probably way down their list of priorities! The most simple administrative job seems to be a Herculean task for the company, who I know suffer from outdated and wildly inaccurate information and technology, so although you may well be completely correct, this is one more thing on a seeminglty endless list of SLC complaints!0
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