The HMRC, Student Loans Company & JSA

eraser

Hi there,

I received a letter from the Student Loans on Friday stating they`ve been notified by the HMRC (HM Revenue & Customs) that according to their records, I`m now in employment.

First of all, I got a call from the Student Loans mid-last year suggesting I start paying it off (loan). I rang them, told them I was unemployed and had no idea when I would have a job next. They said fine, they`d stop the money being taken out of my account. Great.

This new letter concerns me though, and I know I`m in the wrong although I`m asking to see if anyone here either has experience of this or knows what is likely to happen/give advice.

I did two small spots of temporary work just before Christmas. One was for 3 days - I was removed from the position as I wasnt getting correct grasp of the job quick enough. Next spot I got was for a picking job, £20 an hour for 24 hours. Two 12 hour shifts. I did them, got paid and paid £80 tax from the earnings, plus the little bit of NI.

Anyway, I`m concerned as I know I should`ve signed off, but I didnt. I should`ve signed off then back on again. Am I liable for anything here? It couldnt come at a worse time - due to potentially start a new job this time next month if I passed a recent interview. I just have a feeling a fine is on the way and potentially prosecution. My fault for not signing off...

Any thoughts, advice or what not would be greatly appreciated.

Cheers.

Oldernotwiser

Are your loans pre 1998 (mortgage style) or the more recent?

eraser

More recent. I graduated just as the recession kicked off, so July 2008. Started signing on around October 2008.

These two "temp" jobs were about a month and a half between.

dmg24

Did you declare your income to the JCP? If not, you need to do so now. If HMRC have this information, it is only a matter of time before the JCP do also.

eraser

No I didn`t, and this is the worrying thing. How do I suggest it, when the 2nd temp job was about 10 days before Christmas? I`ve signed on once since then, due to sign on again next Thursday. Thinking about signing off, but I don`t think it`ll make a difference.

Was going to ring up the Loans Company tomorrow and say I`m not in employment, but as you say, if the HMRC know then I think suspicions will be raised...

eraser

Cheers for your advice with this btw

Mikeyorks

It doesn't matter if 'you're in employment'. You only start paying your SLC loan back once you're earning over £15,000pa (or £1250pm if you're monthly PAYE).

The temporary work just before Christmas sounds a little too recent for the very slow cogs to work between employer / HMRC and on to SLC? So you simply need to ring SLC and rationalise the position with them ..... to the effect you've only had a couple of very casual appointments. But are hoping ...?

eraser

Yeah the plan is to ring the SLC tomorrow and sort it out. Mainly HMRC which is bothering me, as if the JC find you`ve had work but didnt declare it, you have to pay it back or face consequences.

By "hoping" do you mean hoping for work? Yeah this is true, they (JCP) paid me to get to an interview as with help for a suit last week. So coming clean would give away that I didnt say anything. Like digging a deeper hole...

Savvy_Sue

The hole doesn't get filled in by NOT saying anything though, does it? Declare it now, surely.

eraser

I`ve just been on the phone to the SLC. Apparently all I have to do is send the letter back to the HMR&C with a small covering letter suggesting they were one off jobs, and my benefits certificate. That`ll go to the SLC who`ll update their system. It`s the £80 tax which alerted them...

Wondering what the likelihood is that the Jobcenter will find out. Probably end up having to pay about £300 back which I haven`t got...

Savvy_Sue

Likelihood - high. Consequences - better if you tell them now rather than wait for them to catch you. I don't know if they'll do repayment plans rather than insist on a lump sum, but that is DEFINITELY worth asking, because if it goes to court then the regular payment which can be taken from benefits is very low.

You really want to avoid it going to court, especially if you're about to start a new job.