Student Loan repayments not being deducted

pbaker91

Slightly complicated one here, so apologies in advance but any help would be much appreciated! I'm currently in my first job after graduating, earning over the repayment threshold and so expected deductions through PAYE from April. This did not happen, and after querying with my employer found that they hadn't been notified by HMRC and so couldn't start taking deductions.

I'm soon looking to switch careers to something much lower paid - like minimum wage to start out, rising to an average of £35k in the industry, so my loan repayments would stop anyway for a while at least, and from what I understand, the limited earning potential will mean I most likely never pay it all back before it is written off (25 years).

Is there any economic benefit to going through the hassle of ringing HMRC/SLC and sorting the situation out? My employer says that they do not backdate payments, and will just begin deducting as normal when advised my HMRC - is this correct?

Any advice would be appreciated! Would've thought the SLC would be itching to get their money back but apparently not...

CHGriffiths

I graduated in June 2013. (I did another one year course after this but thats not relevant to this) I was then employed from July 2014 (so after the following April from my graduation date) and the HMRC notified my employer to take payments from October and they were not backdated. So from my experience, it doesnt always happen straight away and it is not backdated.

Laulau

I graduated in 2004 - the SLC took a few months before the deductions started coming out and they didn't back date, I wouldn't worry if I were you, they may ask you to update your details but if you have switched employers and are earning below the threshold thats all you need to declare - with regards to wiping out after 25 years im not sure, from memory I think for anyone who took out a loan after 1998 they had to repay until paid off or they hit retirement, I may be wrong but am pretty sure thats the case

Ed-1

Laulau wrote: »

I graduated in 2004 - the SLC took a few months before the deductions started coming out and they didn't back date, I wouldn't worry if I were you, they may ask you to update your details but if you have switched employers and are earning below the threshold thats all you need to declare - with regards to wiping out after 25 years im not sure, from memory I think for anyone who took out a loan after 1998 they had to repay until paid off or they hit retirement, I may be wrong but am pretty sure thats the case

You are partially wrong. Courses starting 1998-2005 have loans written off at age 65. Courses starting 2006-2011 have loans written off after 25 years (from the April after course finished). Courses starting 2012+ have loans written off after 30 years (from the April after course finished).

http://en.wikipedia.org/wiki/Student_loans_in_the_United_Kingdom#Repayment_and_interest

dtjmiddleton

I've been working in my current job for 10 months now, and whilst my salary isn't massive, I'm still above the threshold for paying back. I've had no correspondence from SLC about the fact fact I've not been paying, but they continue to send me balances. Last time I worked (before I moved away for a couple years) it was all done automatically. Should I be telling them I expect them to take money from me?