Student loan deduction not taken from pay...
Discussion
So, i've been merrily paying off my student loan for about 11 years, it's down to about £10k last i checked.
Checked my bank account two days ago and was pleasantly surprised to see my pay higher than expected...initially thought that work had sorted me a better payrise than previously agreed.
That was shortlived.... turns out as of this month our payroll is outsourced, looks like someone forgot to tick a box so my student loan payment wasn't deducted from Jan pay.
So I have two choices...clam up and take the extra £130 a month assuming they don't figure it out, money which I desperately need right now... or speak up and get it corrected.
Can my company/HMRC/SLC deduct a lump sum at a later date? trying to weigh up whether it's worth the risk or if i'll get hit later.
Not too fussed about not paying the loan for a few months, it's not going anywhere fast...and the interest shouldn't be too hideous.
Checked my bank account two days ago and was pleasantly surprised to see my pay higher than expected...initially thought that work had sorted me a better payrise than previously agreed.
That was shortlived.... turns out as of this month our payroll is outsourced, looks like someone forgot to tick a box so my student loan payment wasn't deducted from Jan pay.
So I have two choices...clam up and take the extra £130 a month assuming they don't figure it out, money which I desperately need right now... or speak up and get it corrected.
Can my company/HMRC/SLC deduct a lump sum at a later date? trying to weigh up whether it's worth the risk or if i'll get hit later.
Not too fussed about not paying the loan for a few months, it's not going anywhere fast...and the interest shouldn't be too hideous.
Not sure if at the end of the tax year they notice and demand the % that you should have paid for that year... technically I think they cant ever backdate, but dont know if there are any circumstances that means they can.
But as you know about it, why not just tell them or are you looking innocently for a pay holiday of X months and dont care of the % interest over that time?
If they cant backdate, then you have no worries, but if they can I wouldnt be spending that money until you know for certain.
But as you know about it, why not just tell them or are you looking innocently for a pay holiday of X months and dont care of the % interest over that time?
If they cant backdate, then you have no worries, but if they can I wouldnt be spending that money until you know for certain.
i'm currently paying off the remainder of a bank loan, so in the short term it makes sense to use this money to overpay that to get it knocked on the head...not overly fussed about incurring 6 months or so of interest on the student loan in the short term.
My only real worry is being hit with a lump sum deduction when someone realises they have messed up, I can't find any info anywhere on whether my employer can do that.
My only real worry is being hit with a lump sum deduction when someone realises they have messed up, I can't find any info anywhere on whether my employer can do that.
designforlife said:
i'm currently paying off the remainder of a bank loan, so in the short term it makes sense to use this money to overpay that to get it knocked on the head...not overly fussed about incurring 6 months or so of interest on the student loan in the short term.
My only real worry is being hit with a lump sum deduction when someone realises they have messed up, I can't find any info anywhere on whether my employer can do that.
I can't imagine either them or HMRC being overly fussed about the SLC deduction. There will be people who go above and below the threshold all the time so it will just be assumed that you were "below" for that month. My only real worry is being hit with a lump sum deduction when someone realises they have messed up, I can't find any info anywhere on whether my employer can do that.
CubanPete said:
I'd fess up.
It'll be a big enough mess for people to sort out as it is.
A number of people 'at a friends' work were incorrectly overpaid (mainly part time workers who were never pro-rata'd) and will be taking home less and repaying money back too.
It won't be a mess (In fact, given the way Payroll systems work) it'll probably be as much of a faff to correct it.It'll be a big enough mess for people to sort out as it is.
A number of people 'at a friends' work were incorrectly overpaid (mainly part time workers who were never pro-rata'd) and will be taking home less and repaying money back too.
The loan deduction will be set up to calculate automatically (just like your Tax, Ees NI, and Ees pension). If you want to pay your arrears AIUI they will need to process this as a manual deduction using the SLC element on Payroll (if one exists).
I'm 99% sure there would be no comeback on you and I'm 100% sure nobody really cares. It just means that you will have paid off less of your SLC this year than you planned.
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