Student loan - balance still high

Hello All,

my wife left uni in 2009 with a balance of just over £11k.

My wife's first full time job was late 2009 which she has always earnt above the threshold.

looking on her online account her balance is still over £6k. with my calculations it should have been pretty much paid off by now.

her online statements shows that in 2009 hmrc have told them of her new job. then there is a large gap untill 2016 where it shows the hmrc has updated them with her new job.

the 5k paid has been between 2016- now.

I can only see two outcomes.

1. her employers between 2009-2016 were not taking the deductions.

2. she has been paying her loan but student loans dont have the information.

after speaking with them they have said we would need the pay slips or p60 between these dates. unfortunately this is something we dont have. my wife is in the process of trying to obtain the p60 from previous employers however is this not information the HMRC would hold?

is getting hold of payslips or p60s the only way?

it would be great to hear your thoughts.

dan

Comments

  • Gaz83
    Gaz83 Posts: 4,047
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    You would think that HMRC hold all the information about a person's wages, tax, etc., and they do, but they're not allowed to share this between departments. Source: used to work for HMRC.

    Wouldn't she have noticed on her wageslips that the student loan wasn't being deducted?
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  • carnut1234
    carnut1234 Posts: 89
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    she says from memory that she has been paying her student loan for years. I remember conversations maybe 5 years ago about it as we were buying our first house.

    We are 90% sure she was being deducted for her loan but without the p60 or wage slips we cant find this out.

    ideal is to always keep wage slips etc but this was a long time ago
  • TrustyOven
    TrustyOven Posts: 746
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    She didnt notice something wrong on the ANNUAL statements from the SLC?


    Why does she not have her P60 slips?


    I graduated in 2005, and made exta voluntary payments last couple of years and I've still got £1700 to pay off. Are you absolutely sure your calculations are correct and take interest into account?


    Are you able to see the statements on the website for each year?


    This might be of some use: https://www.gov.uk/paye-forms-p45-p60-p11d/lost-paye-forms


    Unfortunately, it looks like she would have to contact the previous employers for the P60 - but they might not have this data if they shred documents older than 6+ years.


    This too (I know it's Self Assessment related, but gives you insight on what HMRC thinks): https://www.gov.uk/keeping-your-pay-tax-records


    It might even be the case that she will have to pay more than she owes, if she can't prove that it was paid.
    How compliant HMRC is to this situation: I don't know. If she can't get them to co-operate, she might well have to pay more.


    I bet SLC would insist that it's her loan, and that she should have looked after her afairs better. So, I wonder if she won't be able to win any sort of legal claim.


    This page: https://www.finder.com/uk/how-to-get-a-p60


    says: "If you have lost this, your employer is required by law to keep records of all their P60s for three years, so you can ask for another copy from them."

    So in that case she might struggle.


    This page suggests that you are legally required to keep records of your tax and income: http://www.taxvol.org.uk/about-tax/information-keep/


    So wonder if she will open herself to legal hot-water?
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  • Is it legal that student loan repayments come out monthly (PAYE) however aren't forwarded to SLC by HMRC until tax year end (accruing interest during that time)?
  • silvercar
    silvercar Posts: 46,744
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    Is it legal that student loan repayments come out monthly (PAYE) however aren't forwarded to SLC by HMRC until tax year end (accruing interest during that time)?

    They are forwarded annually, but the interest accrued is adjusted to reflect when the payments were made. So you shouldn't lose out, other than having to cope with a ridiculous system.
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  • bsms1147
    bsms1147 Posts: 2,261
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    Are you accounting for repayment of interest on the balance? If you earn over the thresshold and are repaying, it is possible for the balance to increase with time as the repayments don't even cover the interest added.

    It's not unrealistic for a 6k balance to remain on an 11k debt, even if your wife has 'always earnt above the threshold.' and been paying back every month.
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