HMRC and Student Loans Company - Whose responsibility?
Discussion
Here's the scenario, When I first started at my current company in the 06/07 tax year, I was put on a BR tax code which meant no student loan deductions were taken via PAYE. I managed to sort out the tax code pay the tax that was due (owing to me being on the wrong code) and student loan contributions were taken automatically through PAYE monthly.
In the subsequent 12 months I have paid off the loan in full and in actual fact I've overpaid and am owed about £4k from Student Loans.
The challenge is HMRC are asking me for an amount outstanding (student loan contribution for when I was on a BR tax code) retrospectively for the 07/08 tax year but they are not taking into account the fact I have actually repaid the loan in full and am actually owed a rebate.
I call Student Loans and they confirm I have over-paid and am due a rebate but direct me to HMRC to sort it out, I then call HMRC and I'm met with a "Well I only did 3hrs training on Student Loans 10 years ago, it's complicated, you'll need to talk to Student Loans Company!"!!
Has anyone been in this situation, I'd appreciate any help/tips to resolve it!!
Thanks
Rich
In the subsequent 12 months I have paid off the loan in full and in actual fact I've overpaid and am owed about £4k from Student Loans.
The challenge is HMRC are asking me for an amount outstanding (student loan contribution for when I was on a BR tax code) retrospectively for the 07/08 tax year but they are not taking into account the fact I have actually repaid the loan in full and am actually owed a rebate.
I call Student Loans and they confirm I have over-paid and am due a rebate but direct me to HMRC to sort it out, I then call HMRC and I'm met with a "Well I only did 3hrs training on Student Loans 10 years ago, it's complicated, you'll need to talk to Student Loans Company!"!!
Has anyone been in this situation, I'd appreciate any help/tips to resolve it!!
Thanks
Rich
Was in a similar situation myself(-ish). Call the Student Loans Co again, they're really hit and miss but if you're lucky, you'll get one of the really good advisors. If still no joy, write them a letter. This way your query should find it's way to the person who can actually help you, rather than some bint with a FAQ on their PC screen, getting paid NMW to file their nails.
Seem to be making some progress, they are sending me a statement of account which will clearly show I have over-paid and am due a rebate from HMRC, I'm hoping this letter will be enough for HMRC to pull their finger out and provide the rebate.
Only issue is the letter is a "manual letter" so it appears to be taking more than a week to arrange, very frustrating must have called them 5 times just to get to this stage! Ah well, will keep persevering as the rebate is worth it!
Only issue is the letter is a "manual letter" so it appears to be taking more than a week to arrange, very frustrating must have called them 5 times just to get to this stage! Ah well, will keep persevering as the rebate is worth it!
soprano said:
How did you manage to over pay by £4k?!
Not sure in this case, but:The system is set up so that even if you have a balance of £2.50 left to pay, for the whole of the next tax year they will take full deductions off you. They then only credit the account at the end of the tax year - meanwhile interest accrues even though you've 'paid' the loan off.
So you build up a huge surplus, then have to pursue incompetent QUANGOS to get it back.
Mattt said:
soprano said:
How did you manage to over pay by £4k?!
Not sure in this case, but:The system is set up so that even if you have a balance of £2.50 left to pay, for the whole of the next tax year they will take full deductions off you. They then only credit the account at the end of the tax year - meanwhile interest accrues even though you've 'paid' the loan off.
So you build up a huge surplus, then have to pursue incompetent QUANGOS to get it back.
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