Student loan payments stopped?!

kanilly

Hi,

I received my self assessment tax bill this week which is higher than expected. After querying this with my accountant we’ve noticed that my employer hasn’t been making my student loan deductions. I’ve raised this with the team and they’ve informed me that it seems for some reason my payments stopped in May 2020 and only started up again in May 2023. We’ve asked the payroll providers to look into this as I never received a notification to say my payments have/will be stopping. I also didn’t notice it on my payslips - FYI I’ve been with the same employer since September 2018.

at the moment the payroll providers are still looking into this but I’m just wondering where I stand with this?! I’ve calculated that I would have reduced my student loan by over £5k in the past 3 years, and at the moment it’s still sitting at £19k. Is there a body I could raise this with?

Devongardener

Can you check with the Student Loan Company, or whoever your provider is to confirm. I would have thought that they would have contacted you or your employer if payments suddenly stopped.  As it’s all linked to real time information from the payroll program linked to HMRC, and SL deductions kick in automatically at the appropriate salary level, it’s difficult to understand why deductions would stop.    

I doubt there is likely to be any claim to be made because you owe the payments whatever the situation and it would be hard to prove where the fault lies.

Checking payslips is important, particularly as you would have been over £100 a month better off, allowing for tax adjustments.

silvercar

Can you get a statement from the student loan company? 

kanilly

Devongardener said:

Can you check with the Student Loan Company, or whoever your provider is to confirm. I would have thought that they would have contacted you or your employer if payments suddenly stopped.  As it’s all linked to real time information from the payroll program linked to HMRC, and SL deductions kick in automatically at the appropriate salary level, it’s difficult to understand why deductions would stop.    

I doubt there is likely to be any claim to be made because you owe the payments whatever the situation and it would be hard to prove where the fault lies.

Checking payslips is important, particularly as you would have been over £100 a month better off, allowing for tax adjustments.

Thank you, our payroll provider is looking into it, and my accountant has said that I will be liable for the payments which I do understand, but it just feels unfair that 3 years worth of payments haven’t been taken and no one really seems to know why. Payrolls initial response hasn’t been overly helpful, and they’ve said they won’t be able to access audit reports that far back, but having someone senior look into it. 

I know, I’m kicking myself for not checking my payslips more thoroughly!

Savvy_Sue

Not only payslips, but do you not get an annual statement from SLC? That might have given a clue ...