Student Loan : Double payment made to company in error - can I claim it back ?

portoman

Hi

I got my loans in 1993 and I am paying my loans back direct to Erudio (one of the organisations that bought some of the loans), so I any money is not taken from any salary I have. However, my new employer has made a mistake and ignored or just not checked my employment form, and so £150 has also been debited for a student loan. So basically this month, I paid the money myself and they have also, mistakenly, received money from my salary. So money has been paid twice.

Initially I telephoned Erudio who said they haven't asked for the money to be paid to them (well no, the money has been debited due to payroll mistake), and the payroll dept where I work said they cannot claim the money back.

So what can I do - can I get the money back ? Will the student loan company (how many are there??), have a record of them receiving the extra money ? Would this be Erudio ? Does it go direct to the HRMC??

Thanks in advance

Ed-1

portoman wrote: »

Hi

I got my loans in 1993 and I am paying my loans back direct to Erudio (one of the organisations that bought some of the loans), so I any money is not taken from any salary I have. However, my new employer has made a mistake and ignored or just not checked my employment form, and so £150 has also been debited for a student loan. So basically this month, I paid the money myself and they have also, mistakenly, received money from my salary. So money has been paid twice.

Initially I telephoned Erudio who said they haven't asked for the money to be paid to them (well no, the money has been debited due to payroll mistake), and the payroll dept where I work said they cannot claim the money back.

So what can I do - can I get the money back ? Will the student loan company (how many are there??), have a record of them receiving the extra money ? Would this be Erudio ? Does it go direct to the HRMC??

Thanks in advance

Payroll deductions are solely for those with post-1998 "income-contingent" loans, not pre-1998 "mortgage-style" loans. HMRC will send the money to SLC in the usual manner, but as you don't have an income-contingent loan account with them they won't be able to allocate the money.

Who's fault is it that the payroll deduction was made? Did you tick that you had an outstanding income-contingent student loan on your starter declaration?

But in any case, it's your employer that needs to refund the payment to you.

https://www.tolley.co.uk/__data/assets/file/0020/27065/student_loan_deductions.pdf

Incorrect student loan deductions made
For various reasons, an employer may make an incorrect SLD resulting in an under deduction or over-deduction of the student loan. This may arise for the following reasons:

• a start Notice is applied to the wrong employee
• SLDs are made after a Stop Notice has been received
• previous employer erroneously completed Box 5 on the P45 with a ‘Y’
• Employee mistakenly answered ‘Yes’ to student loan question when giving new starter information
• HMRC issued Start Notice in respect of the wrong borrower

Where an error has been made, the action to be taken by the employer depends on when the error is discovered.

Error made in current tax year

In the case of over-deductions, the amount deducted in error should be refunded to the borrower.

In the case of under-deductions, recovery can be made from subsequent payments in that tax year. Note that the recoverable amount is limited to a maximum amount equal to the normal SLD due in that pay period.

See Example 5.

portoman

Thanks for the reply.

The problem is payroll say they can't claim it back and Erudio say they haven't received it - which is correct you say, as there is no account set up for that. Could HRMC send it back if they cannot find an account to send it to? Also, I've no idea who made the error on the paperwork - me or payroll - and does it matter? If they say it's "my fault" will that prevent them from getting the money back?

Ed-1

portoman wrote: »

Thanks for the reply.

The problem is payroll say they can't claim it back and Erudio say they haven't received it - which is correct you say, as there is no account set up for that. Could HRMC send it back if they cannot find an account to send it to? Also, I've no idea who made the error on the paperwork - me or payroll - and does it matter? If they say it's "my fault" will that prevent them from getting the money back?

It shouldn't do - refer payroll to the document I have linked to.