SLC Unemployment Evidence

Smithers101

Hello great MSEs,

I have just received a letter from the Student Loans Company from my 2007 loan asking me what my current circumstances are after HMRC have informed them that I am no longer in employment. It says that, if I am 'not in employment', which is my current situation, then I need to submit to them evidence of the funds I am living off of. My situation is a mixture of savings and my wife's current employment. Thus they want bank statements totalling three months.

My point is, do they have the right/power to ask for this information? They say I will be fined if I don't provide this. Given that repayment is conditional on earnings and not savings, it is very dubious that they care to observe what funds I am living off off. In previous periods of unemployment, this has never occurred before, and I've never been asked to essentially prove my unemployment. What are peoples views on this?

Thank you all.

Ed-1

Smithers101 wrote: »

Hello great MSEs,

I have just received a letter from the Student Loans Company from my 2007 loan asking me what my current circumstances are after HMRC have informed them that I am no longer in employment. It says that, if I am 'not in employment', which is my current situation, then I need to submit to them evidence of the funds I am living off of. My situation is a mixture of savings and my wife's current employment. Thus they want bank statements totalling three months.

My point is, do they have the right/power to ask for this information? They say I will be fined if I don't provide this. Given that repayment is conditional on earnings and not savings, it is very dubious that they care to observe what funds I am living off off. In previous periods of unemployment, this has never occurred before, and I've never been asked to essentially prove my unemployment. What are peoples views on this?

Thank you all.

Yes this is standard procedure when HMRC notify them you are no longer in the tax system. It's to make sure you are not earning over the threshold from other income and thus avoiding making loan repayments due.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,7950690&_dad=portal&_schema=PORTAL
http://www.legislation.gov.uk/uksi/2014/651/pdfs/uksi_20140651_en.pdf

http://www.legislation.gov.uk/uksi/2009/470/regulation/23/made

Regulation 23 of the repayment regulations states:

23.—(1) The Authority may serve a notice (“an Information Notice”) on a borrower at the borrower’s home address.

(2) An Information Notice under paragraph (1) may require the borrower to provide some or all of the following, together with documentary evidence in support where relevant -

(a) full name;
(b) telephone number and/or email address;
(c) National Insurance number or a valid reason for not having one;
(d) date of birth;
(e) a statement of whether the borrower is employed, self-employed or not employed;
(f) the following particulars of employment and income during the period specified in the notice-
(i) for each part of that period during which the borrower was employed, the dates on which the employment began and (unless continuing) ended, the name and address of the employer, employee number, and gross earnings;
(ii) for each part of that period during which the borrower was self-employed, the dates on which that self-employment began and (unless continuing) ended and the borrower’s gross earnings; and
(iii) the amount, source and date of receipt of any other income;
(g) such other information about the borrower’s financial position as may be required
to determine whether the borrower is in receipt of any income.

(3) An Information Notice under paragraph (1) must contain statements detailing the penalties for failure to comply with an Information Notice set out in regulations 24 and 27.

(4) Where the Authority serves an Information Notice on a borrower under paragraph (1), the borrower must comply with it within 28 days beginning with the day on which the Information Notice was served.

(Part (g) was added by these amending regulations: http://www.legislation.gov.uk/uksi/2014/651/pdfs/uksi_20140651_en.pdf.)

Smithers101

Hi Ed-1,

Thank you very much for your informative reply. I see, so (g) gives them the power. I was thinking it was a shame I didn't have the T&Cs from back in 2007 to go through, but then again it didn't entirely matter, as you have pointed out, they amended it.

Well, I will get printing off three months worth of bank statements.

Thank you again for your quick and incredibly informative reply.

Samuel