Repaying Student Loans 2009/10 guide discussion

gallery

I'm starting to get very concerned - not to mention !!!!ed off. I still have not had a statement from SLC since April 2009, contacted them to see what was going on and was told that HMRC have not passed on any of my payments on to them since March 2009. I've sent them my old P60's but am really annoyed that HMRC seem incapable of sorting out something so simple yet see fit to harass me for for the outstanding tax that they miscalculated in the first place :mad:
Does anyone know if this will effect the amount of intersest i will be charged?

MrsManda

gallery wrote: »

Does anyone know if this will effect the amount of intersest i will be charged?

Nope, once they've got proof that you've paid the money (using your P60s) they'll apply the payments to when they were made and recalculate your interest.

Poolie

gallery wrote: »

I'm starting to get very concerned - not to mention !!!!ed off. I still have not had a statement from SLC since April 2009, contacted them to see what was going on and was told that HMRC have not passed on any of my payments on to them since March 2009. I've sent them my old P60's but am really annoyed that HMRC seem incapable of sorting out something so simple yet see fit to harass me for for the outstanding tax that they miscalculated in the first place :mad:
Does anyone know if this will effect the amount of intersest i will be charged?

It could be an issue with the relationship between the tax system and the student loan system at HMRC. It could be your employer put some wrong information on the P14 return. There are numerous things which can cause issue. As long as you have sent your P60 to SLC then they should have forwarded these to HMRC to chase up.

Poolie

MrsManda wrote: »

Nope, once they've got proof that you've paid the money (using your P60s) they'll apply the payments to when they were made and recalculate your interest.

The P60's are proof but SLC cannot generate a file to have this added to the account. The file from HMRC would still be required to be applied to the account for the interest to fully sort itself out and the yearly statements be generated.

MrsManda

Poolie wrote: »

The P60's are proof but SLC cannot generate a file to have this added to the account. The file from HMRC would still be required to be applied to the account for the interest to fully sort itself out and the yearly statements be generated.

Are you sure? My husband's SL is coming to an end but he had to provide his P60 from a few years ago because the payments from that period had not been added to his account. His account has now been updated and he's been told that once the SLC get the details of 2010/11 they'll order a stop on repayments and he'll get anything he's overpaid returned.

Poolie

MrsManda wrote: »

Are you sure? My husband's SL is coming to an end but he had to provide his P60 from a few years ago because the payments from that period had not been added to his account. His account has now been updated and he's been told that once the SLC get the details of 2010/11 they'll order a stop on repayments and he'll get anything he's overpaid returned.

SLC can use the details of the P60 but till the HMRC file is received then the account will not reconcile to generate a statement for those tax years. Any statement he receives for future years may show an incorrect balance as they cannot use the P60 details to generate a statement. They can use the information to ensure the stop notification goes out the correct time.

I have worked in the repayment department and the IT department so am more than fully aware how the system works.

Laurel16

As a parent with 3 of my offspring at various stages of building up and paying off student loans, I find myself in a position to help them out by making a lump sum payment into each of their loan accounts - is this a wise thing to do? My eldest son has only £1,200 outstanding as at 31/3/11 and is worried that there might be some kind of penalty if his loan is paid off "early" - does anyone know if this is correct. Also I gather that IC statements haven't been issued by the Student Loans Company since September 2009 - I assume this is because they weren't charging any interest. It seems to me they make it incredibly difficult just to find out how much money is owed to them at a particular point in time.

melancholly

if you want to give them money, it's almost always a better option to put it into high interest savings than to pay off a student loan - due to the interest rate (low!) and the favourable terms.

moneysaving_convert

I would think that, as the student loan is at such a low rate of interest you would be far better giving them a lump sum to invest in an ISA or higher rate savings account. There is lots of information on paying back student loans on the MSE site

Poolie

Laurel16 wrote: »

As a parent with 3 of my offspring at various stages of building up and paying off student loans, I find myself in a position to help them out by making a lump sum payment into each of their loan accounts - is this a wise thing to do? My eldest son has only £1,200 outstanding as at 31/3/11 and is worried that there might be some kind of penalty if his loan is paid off "early" - does anyone know if this is correct. Also I gather that IC statements haven't been issued by the Student Loans Company since September 2009 - I assume this is because they weren't charging any interest. It seems to me they make it incredibly difficult just to find out how much money is owed to them at a particular point in time.

He won't get a penalty for paying it off early. He should contact SLC to get an updated amount owning as the 31/3/11 details won't be available yet.

Statements will have been issued once the P14 return had been received from HMRC. If they haven't received a statement by now then it would be best to contact SLC and ask them to check what information they have.

It is hard to know what anybody owes due to the way the payments are collected by the tax system and only paid to SLC by HMRC once a year.