Individual has been making repayments to the SLC through payroll for a number of years. She is sure (and can prove with payslips etc) that the loan has been fully repaid. However, the SLC says it hasn't received anything from HMRC for the two years to 5 April 2015. 10 months after the individual first contacted the SLC about this, the SLC says the issue is still under investigation with HMRC. The individual is still having repayments taken from her pay each month and the overpayment is now in excess of £2,500.
1. Can the employer stop deducting repayments? (I don't think so unless they are sent a stop notice by HMRC.)
2. Other than constantly chasing the SLC, is there anything the individual or the employer can do to sort this out?
I suspect the answer to both questions is no and that the whole student loan repayment system is shambolic!
Replies (8)
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Providing the student loan has actually been deducted from the employees salary and you have payslips to prove that I would ask HMRC to issue a stop notice and for the case to be reviewed pending the outcome of the investigation.
HMRC do not know size of debt and deductions from pay continue until SLC says loan has been repaid.
If student knows they have repaid loan they can phone SLC and ask them to put a stop flag on deductions mid-year.
HMRC do not know size of debt and deductions from pay continue until SLC says loan has been repaid.
If student knows they have repaid loan they can phone SLC and ask them to put a stop flag on deductions mid-year.
HMRC do not know size of debt and deductions from pay continue until SLC says loan has been repaid.
If student knows they have repaid loan they can phone SLC and ask them to put a stop flag on deductions mid-year.
The repayments should be shown on the P60 too.
Student Loan Repayments are something else the HMRC deal with very badly in the expansive portfolio of Not Really Knowing What We're Doing.