Student loan repayment

timmyotoole

Can anyone advise?

I had a student loan in 2001 (totalling approx 4K). Since leaving my course I've moved house a few times, and have received various SLC statements at my various addresses.

I have been earning over 15K for many years since leaving my course, but not one payment has been requested or automatically taken from my salary.

Is there a time period for the SLC to automatically take repayments? Or should I inform them?

andy_vip

You've answered your own question. You have to keep them informed of your current financial situation as well as your personal details - including address.

I believe when you start earning over the threshold amount the payments should automatically be deducted in your pay packet - could be wrong though.

timmyotoole

That's what I'm wondering - if its automatic, why haven't they taken any repayments?

onlypaddy

did you inform your employer that you should be repaying student loan? If so, it is their responsibility to inform HMRC and ensure that it is paid through PAYE tax. if they don't they can face a hefty fine...

If you didn't inform them, it could just be a case of 'updating' your employer and let it happen automatically. I'm not sure on this though so you will have to dig and see if you will be liable for anything heavy

timmyotoole

Thanks! No one made me aware I should make employer(s) aware! I have been employed with three different employers since earning more than the 15K threshold

onlypaddy

ok, inform them and it should begin to be taken. Just cross your fingers that more questions aren't asked IMHO

timmyotoole

I quote from the SLC website:

When does repayment begin?

You will normally start making student loan repayments through the PAYE scheme from the April following the date you graduate from or leave your course.

How are repayments made?

Your employer(s) will be advised by HM Revenue & Customs (HMRC) to calculate and deduct student loan repayments from your pay. These deductions will be shown on your pay slip so you can see how much is being paid back each pay period.




This appears as though it is all done automatically throught the tax system - rather than me having to make anyone aware. Surely from my tax code(s) through the years they can see how much I've been earning?

CLAPTON

timmyotoole wrote: »

I quote from the SLC website:

When does repayment begin?

You will normally start making student loan repayments through the PAYE scheme from the April following the date you graduate from or leave your course.

How are repayments made?

Your employer(s) will be advised by HM Revenue & Customs (HMRC) to calculate and deduct student loan repayments from your pay. These deductions will be shown on your pay slip so you can see how much is being paid back each pay period.




This appears as though it is all done automatically throught the tax system - rather than me having to make anyone aware. Surely from my tax code(s) through the years they can see how much I've been earning?

I know it's laughable but the UK tax system assumes that people and honest and that they are accountable for their own tax affairs.
Ignorance is not considered an excuse.
In any event over 9 years you surely must have noticed that you weren't paying

Fiddlestick

timmyotoole wrote: »

Thanks! No one made me aware I should make employer(s) aware! I have been employed with three different employers since earning more than the 15K threshold

Erm, it's on your P46 mate.

There is a box that you tick that states you are liable to repay a student loan and this tells your employer to deduct the payments and pass them over to HMRC.

redpete

timmyotoole wrote: »

I had a student loan in 2001 (totalling approx 4K).

Was this the start or the end of the course? If it was the end of the course and it started before 1998 then the loan might be of the 'mortgage' type where repayments are not based on the £15k threshold.

If the course started from 1998 then call SLC on 0845 073 8891 and ask them what you should do.

timmyotoole

The course started and ended in 2001 (not a good course).

I've had advice elsewhere that HMRC contact my employers, rather than the other way around.

I'll call SLC

Thanks everyone