My previous employer did not deduct Student Loan Payments

mcrobbiegt_2

I worked for a company for a year and during that time, I was not being deducted for Student Loan repayments.

I recently had to complete a Self Assessment Tax Form and now I have been landed with the bill for 1 years' Student Loan Repayments.

If I had not received a SA Tax Form, this amount would have just been charged interest and would have delayed the time it would have taken to repay the loan, but I would not be forking out £700!

Can I contest this? - or am I going to have to take the hit?

Many thanks,

George

stephyt23

I don't know much about this with not yet paying anything back but surely you can appeal or something? I assume you were earning over £15,000 and so should have been paying it back? It hardly seems fair that you've missed a year repayment when it isn't your fault

liney

Well actually, it is the responsibility of the employee to inform the employer that they are to make deductions. This is done on a P46 by ticking a box, or providing a P45 which states they should do this. http://www.hmrc.gov.uk/paye/payroll/day-to-day/student-loan.htm

How did you inform the company that they should make a deduction?

Savvy_Sue

I'd have thought you would have to take the hit: you surely knew what you were earning, and knew you were earning enough to be expected to start making repayments.

In which case, saying to your employer "I think I should be making SL repayments" would have been a better plan than waiting for it to catch up with you later.

rfowler

Speak to you HR department they should of dealt with this

iceicebaby

Did you reeive a pay slip each month or week, however regularly you were paid? If so did you not notice that the student loan payment was not being deducted?

liney

rfowler wrote: »

Speak to you HR department they should of dealt with this

If he told them he should be making payments, they should have dealt with this.

Sammyantha

Don't know how you managed to let this slip by...

I got away without paying my SL for a few months then got a letter from the SL company stating "We understand you are now working..." lol... my employer got the same letter, and sure enough, my deductions were set in place from then on :rotfl:

MoneySavingMouse

Hi,

I have a similiar query. I started a new job in December, through an agency who pay me directly on a weekly basis. I am earning over the student loan repayment threshold, but I haven't had any repayments on my payslips. I received a letter from SLC in March asking me to confirm whether I was employed or not, then another one after I replied, saying as I was now in employment they would notify HMRC. I asked my agency why the SL repayments hadn't been happening, and they said the repayments "were nothing to do with them and it gets automatically done by HMRC."

Can anyone advise me on what do to, if the interest rate on student loans is going up I would like to be making the income-contingent repayments.

Thanks!

MrsManda

MoneySavingMouse wrote: »

Hi,

I have a similiar query. I started a new job in December, through an agency who pay me directly on a weekly basis. I am earning over the student loan repayment threshold, but I haven't had any repayments on my payslips. I received a letter from SLC in March asking me to confirm whether I was employed or not, then another one after I replied, saying as I was now in employment they would notify HMRC. I asked my agency why the SL repayments hadn't been happening, and they said the repayments "were nothing to do with them and it gets automatically done by HMRC."
Can anyone advise me on what do to, if the interest rate on student loans is going up I would like to be making the income-contingent repayments.
Thanks!

When did you leave university? If the 2010/11 academic year was your final year you wouldn't have had to start repayments until April. As you told the SLC you are working they'll have informed the HMRC that you should start repayments and the HMRC will have issued a notice to your employer.

Presuming you are paying tax via PAYE your employer should have then started taking repayments alongside your tax and national insurance. It can take a few weeks to catch up but if you haven't started repayments now and you're earning over £288 a week then you need to chase up your employer to see if they've received a notification from the HMRC yet.

HTH

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867311&_dad=portal&_schema=PORTAL

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867296&_dad=portal&_schema=PORTAL

ferien_uk2011

mcrobbiegt wrote: »

I worked for a company for a year and during that time, I was not being deducted for Student Loan repayments.

I recently had to complete a Self Assessment Tax Form and now I have been landed with the bill for 1 years' Student Loan Repayments.

If I had not received a SA Tax Form, this amount would have just been charged interest and would have delayed the time it would have taken to repay the loan, but I would not be forking out £700!

Can I contest this? - or am I going to have to take the hit?

Many thanks,

George

Your bill is £700 or am I misunderstanding?

I only paid back my student loan at a rate of £1 a month, so a one year bill would be £12. Admittedly, I was only earning just over the 15K but still, £700 seems a lot.