Student loan - not paying it off but earning over threshhold!

SplanK

Chances are they will catch up with me now I have posted this but want to make sure i am not digging myself a hugh hole here

Ive only just realised that for at least the last 2 years I have been over the threshhold for my student loan BUT payments have not been taken from my wage from what I can see. This has happened since ive moved jobs

They used to come out as a deduction - like Tax and NI - there used to be a 3rd one for student loan repayments...

However I have also noticed that my tax code is rather low - something like 4x with a letter after it, i put that down to been the company car...

The loan is something like 4k (i left uni early and I didnt claim the full whack...) im tempted just to pay it off in one go - but that would eat into our emergancy money fund...

OR should I just leave it and wait for them to catch up?!

any advice would be welcome!

SplanK

oh and just to add..
my loan started in 2000, and another "addition" in 2001 before i left uni

I did start to pay it off in my first job before the threshhold changed, then i changed jobs around 18 months later and it started again before the threashold bumped up... however in the 3rd job (around 18 months later-ish) ive been over the threshold for 2 years now

I have had no letters from the student loan company appart from those to give me an annual statement - no other letters to say payments are due, missed.....

SplanK

who is "responsible" as such for ensuring that the money is going out - how do the SLC decide when to take the money... is it down to the accountants to ensure its taken out??

CLAPTON

SplanK wrote: »

who is "responsible" as such for ensuring that the money is going out - how do the SLC decide when to take the money... is it down to the accountants to ensure its taken out??

I know you'll laugh but in the UK the citizen is responsible for ensuring they are paying the correct amount of tax and SLC payments.... the assumption is that people are honest and responsible (obviously we aren't talking MPs here).
You need to contact the SLC and explain whats happened... they will inform the HMRC who will tell your company to start making deductions.

sdooley

Is it possible you've fully repaid already?

JayScottGreenspan

http://www.hmrc.gov.uk/csl/index.htm

The employer is responsible for recording and handing over the repayments to HM Revenue & Customs along with tax and NICs

http://www.hmrc.gov.uk/helpsheets/e17.pdf

An employer's guide to the collection of student loans

You are not responsible for:

• identifying employees who are liable to make Student

Loan repayments

When to start making Student Loan Deductions

You should only start making Student Loan
deductions when:
• you receive a form SL1 Start Notice. HMRC issue typed

SL1 forms, typed manual SL1 letters and electronic SL1

notifications. All are valid.
• a new employee gives you a form P45 with a ‘Y’ in the
Student Loan deductions to continue box (box 5)
• a new employee gives you a form P46 with a tick in
box D (Student Loans). The employee should tick this
box if they left higher education before last 6 April and
they have not fully repaid a Student Loan first taken out

on or after 1 September 1998.

fay144

I'm in this situation too. My loan repayments never started in the first place, despite earning over the threshold as soon as I left uni.

It might not be as easy to sort out as you would think - I've spent the past five years phoning them to get it sorted out, to get passed in circles between my employer, the inland revenue, and the SLC.

Every six months or so I decide I'm going to get it sorted, and then they are so incompetent that I get fed up and give up for another 6 months.

So can't give you any advice - begging them to take my money has had no effect. I've just re-sent them all my details in writing (including company payroll number and PAYE number, which they have requested and been given in the past) so maybe that will have more effect than getting passed between people with no clue on the phone.

I wouldn't pay it off in one go though. I did think about sending them £100 a month, to see if that triggered anything...but figured it was better in my savings account If you are worried, you could make your repayments that way? Now the interest rate is so low, I might start doing that myself.

SplanK

CLAPTON wrote: »

I know you'll laugh but in the UK the citizen is responsible for ensuring they are paying the correct amount of tax and SLC payments.... the assumption is that people are honest and responsible (obviously we aren't talking MPs here).
You need to contact the SLC and explain whats happened... they will inform the HMRC who will tell your company to start making deductions.

Well i wasnt quite sure on the student loan thing as it usualy gets deducted from my wages - i thought the SLC did it and just checked it of my wages through HMRC and that i didnt have to do anything...

PS - im not after dodging this loan, and I am a firm beliver in what I borrow I should always pay back no exception - what I dont want to happen is for the SLC to turn around and say - right you owe 2 years payments in one lump sum!

So from the post JayScottGreenspa put up - it seems as though the employer should be told about the student payments either from me (in the way of the P45) or by the inland revenue...

I will go and mention it to my boss and see what he says as its a small company - our accounts are handled by another company!