Student Loan deductions... though I don't have a student loan

crumblylancashire

I started a new job recently and student loan deductions are being taken... but I don't have a student loan.  I DO have a postgrad loan (deductions are being taken for that also).  How on earth can I stop this, i'm finding it hard to get anyone to help.  SLC blame the HMRC, the HMRC blame the SLC, my employers can't seem to help - and i'm stuck in the middle.  Any pointers gratefully received, it's a fair chunk of my salary to lose

General_Grant

Did you provide a P45 from a former employer when starting this new job?
If not, what did you put on the New Starter Checklist form in relation to student loans - in sections 9 and 10?

crumblylancashire

Hmm good question, my p45 did only show the postgraduate loan and I sent it to them as soon as I received it.  The new starter form is a good question... I can't recall, but I did find an email I sent to HR (about 3 months before starting) saying that the form was a bit confusing - but that I did have a postgraduate loan and not a student loan.  Sigh.  No idea what happened, but I need to get it sorted ☹

Marcon

crumblylancashire said:

Hmm good question, my p45 did only show the postgraduate loan and I sent it to them as soon as I received it.  The new starter form is a good question... I can't recall, but I did find an email I sent to HR (about 3 months before starting) saying that the form was a bit confusing - but that I did have a postgraduate loan and not a student loan.  Sigh.  No idea what happened, but I need to get it sorted ☹

You might just have identified the problem. Did you fill in a new starter form and give them a P45?

crumblylancashire

Well, they requested both... but I don't think they really needed the P45 by the time I eventually got it.  Thing is, I need to stop this happening, I dont have a student loan at all, so not sure how to make that happen.

General_Grant

crumblylancashire said:

Well, they requested both... but I don't think they really needed the P45 by the time I eventually got it.  Thing is, I need to stop this happening, I dont have a student loan at all, so not sure how to make that happen.

Get HR/Payroll to give you a copy of the New Starter form (you have your copy P45, don't you).  If you have a PG loan I think you should be able to cope with ticking the correct boxes.

crumblylancashire

I've contacted HR again, will see what they say - as I explained to them at the time, the wording is a bit confusing around that area of the form, and I did explain the situation to them at the time - what's done is done.  But the problem I have is around how to stop it, when no one seems to know how to.

crumblylancashire

Thanks for all the help, though I was hoping for any hints about how to fix this, and not about a form that was not only badly worded, but filled in 5 months back.  I can't go back, I just want to sort this moving forwards... but none of HR, the HMRC or the SLC seem to be able to help, so I'm a bit stuck.  But thanks, going to nip this thread in the bud and try to find someone at one of the above who can help.

General_Grant

From the form:

8  Tell us if any of the following statements apply to you:
• you do not have any Student or Postgraduate Loans
• you’re still studying full-time on a course that your Student Loan relates to
• you completed or left your full-time course after the start of the current tax year, which started on 6 April
• you’re already making regular direct debit repayments from your bank, as agreed with the Student Loans Company
If No, tick this box and go to question 10
If Yes, tick this box and go straight to the Declaration

10 To avoid repaying more than you need to, tick the correct Student Loans that you have - use the guidance on the right to help you.
Please tick all that apply
Plan 1
 Plan 2
 Plan 4
 Postgraduate Loan (England and Wales only

I haven't repeated the whole of the form but if I had been in your situation it seems to me I would have ticked the No box for 9 and only (actually Plan 3) the PG box in 10 because the other Plans refer to ordinary student loans.

Is my logic flawed?

You need to find out what you did tick and what Payroll reported to HMRC in case they didn't inform HMRC correctly.

DiyVirgin

Hi, I had an issue with hmrc and student loan company when I started my job last year (not the same as yours) but I had to just keep trying speaking to people until I got someone (at hmrc for me) who would take the time to listen and do their best to help.

From what you have said I think you need to instruct your HR/payroll department to stop paying the student loan payments. I’m assuming the SLC does manage your post grad loan repayments? From my experience they get the details from HMRC what is being taken but this can take time so if this situation is new it might take a little while to filter through.

good luck!

crumblylancashire

OK, got to the bottom of it - the new starter form was filled in correctly... my previous employers had ticked the student loan box on the P45, I guess they got confused between Postgrad and Student loan.  Spoke to the HMRC, and they've issued a Stop and refund notice, so hopefully it'll be sorted soon.