Repaying Student Loans 2009/10 guide discussion

Poolie

saselite wrote: »

i graduated last year and i am now working self employed, so i have to sort out all the paperwork etc.

When you complete your self assessment each year you have to mark that you have a student loan. If you fail to do so, HMRC will check against their records and mark it in and you may be liable for a fine for not completing your self assessment correctly.

The amount due to SLC will be deducted along with your tax bill. This will be forwarded to SLC and applied to your account. At this time you will receive a statement.

Christinec_2

hey all

i currently pay £156 a month to my student loan, and i've approximately have £426 left to pay (as of Apr'11). This is from me inputting my date to the online calculator...

this should mean i'll have after my june payment approx £114, which i want to pay off as a final payment.

i've a pal who ended up overpaying £1000 through this draconian computer system that the student loans company has... i really want to avoid this.

how do i go about finishing come this June? i hear it make take some time & caffuffle...ie, student loans issues a stop notice > inland revenue informs my company > my company adjust my PAYE

how long does this take?? and is it really such a pain in neck i think that i'm going to have to go through??

any info is appreciated!!

Poolie

Call SLC now and give you all repayment details for Tax Year 2010-2011 and the current tax year to the advisor. They will then be able to sort out the necessary stop to your employer.

Once the request notification leaves SLC (on a Wednesday night if I remember correctly) and HMRC issue it to your employer then they have 42 days action the request to stop. So if you want it to stop on time you would need to get the info to SLC NOW! Otherwise you are going to end up over paying by 1 month.

Once the payments do stop, send a copy of your P60 (if you have it by that point) plus payslips from April 2011 to SLC along with confirmation of your bank details and they will process the refund.

NOTE - The online calculator on https://www.studentloanrepayment.co.uk does not feed back into the live student loan system.

jollyme

I hope someone can help.... we are talking about a post 98 loan. The ex-student now works abroad and pays a fixed monthly amount calculated by SLC as 9percent of earnings above the overseas country's threshold. Now my question is , What happens when that threshold changes?? Can the ex-student request a reduction in monthly payments? Is it too much to ask that SLC automatically notify when a threshold has changed (it seems that it may be). I am feeling very frustrated after a 30min phone call to SLC which , well let's just say did not answer the questions. In fact they could not even confirm that the threshold had changed!

MrsManda

jollyme wrote: »

I hope someone can help.... we are talking about a post 98 loan. The ex-student now works abroad and pays a fixed monthly amount calculated by SLC as 9percent of earnings above the overseas country's threshold. Now my question is , What happens when that threshold changes?? Can the ex-student request a reduction in monthly payments? Is it too much to ask that SLC automatically notify when a threshold has changed (it seems that it may be). I am feeling very frustrated after a 30min phone call to SLC which , well let's just say did not answer the questions. In fact they could not even confirm that the threshold had changed!

They should tell you but I'm not sure how good they are at it. I think the best thing to do may be to keep an eye on the Overseas Thresholds on the repayment website and contact them for a reassessment if you think it's changed. Otherwise, your payments should be reassessed every 12 months anyway.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867189&_dad=portal&_schema=PORTAL

Poolie

When the repayment threshold changes, SLC will automatically adjust all the repayment amounts due. The announcement of what the threshold will be has not yet been made so people in SLC will not be aware. Plus it is only rising by a % this year for the next few years before it will be £21K with an inflation adjustment for the few years time.

Christinec_2

Thanks Poolie... sadly i'll not manage to do this til friday afternoon as their office hours arent the most suitable for people working full time (ironic as those who are actually re-paying are the ones who work full time!)
Its such a frustrating system, but thanks very much for the specifics - if it comes down to over-paying a month or two its not the end of the world, but of course i'll be doing my best to avoid this!
thanks again!

jollyme

Thanks MrsManda. I'm just wondering how receptive they will be to doing a reassessment when neither income nor location has changed. When I rang I was told they could only tell me the current overseas threshold not any past one I was asking for confirmation of the change. Anyway this is not my loan and I shall pass the information on and trust that a VERY expensive overseas call will be more fruitful. I mean a jump from a threshold of 6k to 9k is massive and makes a very big difference.

fairleee

I was wondering if someone could help. I graduated back in 2009 and have been working since then, although have never earned over 15K. I started a job in November where I am earning 15K p/a as a basic; I also am about to start earning commission payments (from June) which will vary each month.

As I am earning the full amount I can without repaying, does this mean that each month I will only pay 9% back on the commission I earn? E.g. if I earn £600 in commission in June, will I pay back £54, and if I earn £1000 in July, will I pay back £90 for that month? Also, will this be done automatically, or will I have to work something out with my employers?

Please let me know as I can't find any advice elsewhere!

MrsManda

fairleee wrote: »

As I am earning the full amount I can without repaying, does this mean that each month I will only pay 9% back on the commission I earn? E.g. if I earn £600 in commission in June, will I pay back £54, and if I earn £1000 in July, will I pay back £90 for that month? Also, will this be done automatically, or will I have to work something out with my employers?
Please let me know as I can't find any advice elsewhere!

On your P45 which you gave your employers (or on your P46 if you didn't have a P45 to give them) there was a box which should have been ticked if you have student loans to repay. The HMRC will inform your employer that you need to have deductions taken. Presuming you are paying tax via PAYE your deductions will be made automatically.

If you are paid monthly you will pay 9% of everything you earn over £1250 each month to the student loan company.

Have a look on the SLC repayments website if you're still unsure
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867326&_dad=portal&_schema=PORTAL

HTH