Student loans and self employment

jimdey

I am self employed and have an accountant for the last 4 years that calculates my tax. I have not paid any student loans repayments in all that time. I have spoke to the student loans companies multiple times and they said that there is nothing that they can do until the inland revenue sorts it out. Called the inland revenue and they said they would get back to me.

Fast forward to yesterday when I received a bill for £5000 from the inland revenue for money which I owe for the last 4 years to the student loans company. !!!!!!!

Has anyone else experienced this? I do not have the money so I am really worried about what they are going to do. I mean I could pay it off with a repayment plan, but I don't know if they offer this.

Many thanks,

James

Poolie

HMRC are within their rights to demand the repayment for student loans if your accountant hasn't been doing your taxes correctly. You would need to discuss the payment terms and any plan with HMRC

jimdey

Can I sue my accountant for this error?

rodenal

As above just give them a call

it is likely they will agree to a payment plan, though you may have to really force the issue for them to accept. Be warned though that ( at least with any of my business dealings with hmrc) where payment plans etc are arranged they will revoke any agreement almost immediately should you miss or pay late.

rodenal

It is only an error if you told your accountant you had a student loan and should be repaying it but they chose not to act on this.

Even then, you havent made any financial loss- yes hmrc want their £5k but it was owed by you to slc regardless.

CLAPTON

odd that you new you needed to pay the student loan, as you spoke to SLC multiple times but omitted to put any money aside for the payment