Student Loans Deductions not Deducted - now in debt

annaanna_2

Hi My husbands previous employer was rubbish, and didn't deduct his student loan despite my husband requesting he do so. He has also never given him a P60.
We called HMRC every june for the last 2 yrs when his P60 was due and told them that his employer refused to give him P60/payslips and refused to discuss deducting student loan repayments from his wages.
We were told there was nothing hmrc could do. So my husband continued to work for him until he was made redundant at christmas.
We are now being hounded by hmrc who are charging interest on the student loan which should have been deducted.


I am posting becuase I'd like to know if anyone else has been in this predicament and what the outcome was. We are appealing by writing, but I can't find any info on this on the web.

DaisyFlower

Surely if you knew the payments were not going out you would have set the money aside or contact student loans direct to make payment direct by cheque?

annaanna_2

thanks i'm really looking for advice - not accusations and questions, but if you must be told ... think about it - didn't recieve payslips - ever - so had no idea of what was being deducted - just received a random net amount in the bank each month.

anyother replies - advice only pls.

Oldernotwiser

HRMC aren't the people who charge interest on student loans. Have you contacted the SLC?

annaanna_2

HMRC are charging compounded interest on the undeducted student loan - it is now classed as unpaid tax and is being treated as a debt to them - the student loans company are not dealing with it.
His previous employer didn't pay all of his income tax - which we just paid to get hmrc off our backs - but we just cannot afford to pay this student loan - i wish they would just deduct it as normal like they should have in the first place.

Oldernotwiser

I've not come across this before but you'd be better posting this on the Tax or Student Boards as it isn't anything to do with benefits.

annaanna_2

Thanks, I just had a look and can't see a tax forum - is there one there or am I going mad?
I will repost to the student forum.

alwaysonthego_2

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dori2o

I would assume that the reason this has come up is because your husband has completed a tax return and selected the box asking if he has an income contingent student loan?

This is the only way that HMRC would be asking for student loan deductions.

With regards to the employer, was he ever issued with a start notice (issued by SLC to HMRC who then forward on to Employer) to start deducting Student Loan deductions. He needs this, or a P45 with student loan indicator shown, to start the deduction, he cannot simply take your husbands word for it.

Just as a side not, the intrest is not compounded, HMRC are not allowed to charge interest on interest.

Unfortunately there is little that can be done. As a self assessment has been completed, and it is known that a IC student loan exists, then HMRC have a duty to collect the student loan shortfall.

If there is an amount owing to HMRC, then I would advise that you speak to the debt management team and make an arrangement to pay the balance in installments. Their telephone number is 0845 366 1204.