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Original poster

Anyone know about HMRC/payroll? New employer deducted paid off student loans

44 replies

Lucia23 · 28/01/2022 10:04

Due to an error, my new employer has deducted student loan money from my first payslip. I paid this off a few years ago.

Before starting I was asked to complete a series of online forms. I had a problem with the HMRC online form which opened strangely although I did my best to complete it. I flagged this to an admin person and asked them to check over - they thanked me for the paperwork and said nothing about it.

I'm told I checked the wrong box and payroll cannot change this if/until HMRC tell them it is an error and recompense me. I find this worrying because I have to rely on someone noticing this error and I'm not convinced - is there anything I can do about this right now?

OP posts:
Original poster
Lucia23 · 28/01/2022 10:28

What I'm trying to understand is - is it correct that I can only wait for HMRC to flag this?

It seems like payroll should be fixing the mistake/updating: www.gov.uk/payroll-errors/correcting-your-fps-or-eps

I know this is a niche problem but any help is be grateful!

OP posts:
senua · 28/01/2022 10:45

Did you give your new employer a P45 from your old job? That should give them the instruction to deduct / not deduct for student loan.

Try to get this sorted before the year-end (March payslip) because it will be simpler.

Don't wait for HMRC to spot it - they have an awful lot of records to look at!. Be proactive and phone them up, go to this webpage for more details. They can then issue an instruction to your employer. For obvious backside-covering reasons your employer will want to work from HMRC's say-so rather than yours.

Inspectorslack · 28/01/2022 10:46

Ring HMRC they’ll be able to sort it for you

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Original poster
Lucia23 · 28/01/2022 11:38

Hi @senua yes I provided my p45 which shows no student loans to be deducted.

I don't trust HMRC to sort this so I will call today and hopefully be able to provide any info they need.

OP posts:
Haus1234 · 28/01/2022 11:40

I would call after Monday - it’s self assessment deadline and their lines will be very busy. However, it should be quick for them to sort if you ring from Tuesday onwards!

QuestionsorComments · 28/01/2022 11:42

You need to contact HMRC and get it changed. Payroll are correct, they can't change what they've been told by HMRC

Original poster
Lucia23 · 28/01/2022 11:56

@QuestionsorComments

You need to contact HMRC and get it changed. Payroll are correct, they can't change what they've been told by HMRC
But this isn't HMRC is it? I'm a new employee added to the payroll so they have added this information about me. But is incorrect. I understand why they can't change it though.

Thanks @Haus1234 I forgot about that. I'll try next week to resolve this.

OP posts:
ItWillBeDone · 28/01/2022 12:00

This happened to me. I told my payroll department and they fixed it. I got a refund the next month. It's probably worth asking payroll to double-check they can't help. My experience with HMRC's helpline is limited but really poor. On hold for over an hour each time too. Good luck.

Toanewstart22 · 28/01/2022 12:01

So absolutely no mention of your student loan on your p45

And yet you think your employer decided to provide information that you have a loan to pay back?

QuestionsorComments · 28/01/2022 12:04

But this isn't HMRC is it? I'm a new employee added to the payroll so they have added this information about me. But is incorrect. I understand why they can't change it though.

No. They will have input what HMRC told them to do and they can't change it without their say so. It's the same with any tax code issue.

QuestionsorComments · 28/01/2022 12:08

The employer hasn't invented a student loan if you gave them no indication that one existed.

TheDoveFromAboveCooCoo · 28/01/2022 12:09

Am I understanding correctly that they have added incorrectly from your new starter checklist?

The form has changed this year and it really isn't clear which box you are ticking, I have had this a few times with new starters this week.

Your payroll department should be correcting your record and paying the deductions back to you in the next pay run.

Rooma · 28/01/2022 12:11

A version of this happened to me. Can't remember exactly how I resolved it but in essence someone marked that I had student loans on a p45 when I didn't so new employer deducted it (I was educated abroad so absolutely no uk student loans)

When this was discovered HMRC told me to call the student loan folks (can't remember name) and get them to confirm formally that there's no outstanding loan from me and then I was reimbursed through my employer I think. Total madness for a box that was incorrectly ticked, but it got sorted

senua · 28/01/2022 13:01

I provided my p45 which shows no student loans to be deducted.
Chase this up with payroll; they might alter based on this.
Do it ASAP and you might be able to catch them before they finalise the January payroll and submit figures to HMRC (they do it over the internet, every payday).

TheDoveFromAboveCooCoo · 28/01/2022 13:07

@senua

I provided my p45 which shows no student loans to be deducted. Chase this up with payroll; they might alter based on this. Do it ASAP and you might be able to catch them before they finalise the January payroll and submit figures to HMRC (they do it over the internet, every payday).
Definitely won't be able to correct for January. Even if paid on very last day of the month it would need to have been submitted by the end of yesterday. Feb should give them plenty of time though.

Definitely push for it fixing before end of the tax year otherwise it's going to be more of a faff to get the money back

Original poster
Lucia23 · 28/01/2022 13:09

@TheDoveFromAboveCooCoo

Am I understanding correctly that they have added incorrectly from your new starter checklist?

The form has changed this year and it really isn't clear which box you are ticking, I have had this a few times with new starters this week.

Your payroll department should be correcting your record and paying the deductions back to you in the next pay run.

This is what I thought. I asked payroll guy to help/update this for me and he repeated this morning what he said yesterday - that he can't do anything. He then repeated 'you checked z box when you should have checked y box'. Yes I made a human error because the form was a nightmare to fill in, which I flagged at the time

I'm really stressed about this because the payroll rude (who is literally the only contact I can see for payroll) is clearly unwilling to help.

I can try calling HMRC next week but doesn't guarantee that will fix it.

OP posts:
Original poster
Lucia23 · 28/01/2022 13:11

@Toanewstart22

So absolutely no mention of your student loan on your p45

And yet you think your employer decided to provide information that you have a loan to pay back?

Student loan is mentioned in the p45. Only to say that I'm not required to pay it.
OP posts:
TheDoveFromAboveCooCoo · 28/01/2022 13:23

@Lucia23 yup thought so.

Up until the last tax year it's been dead simple with basically - do you have a student loan? Yes or no? Whereas with the new one if you are following the form that's been round for donkeys it's so easy to get it wrong!

Old and new below for comparison... (old is the green one)

If he is refusing to correct then yes your only course of action is HMRC. They will confirm that you have no student loan and instruct him to refund.

Anyone know about HMRC/payroll? New employer deducted paid off student loans
Anyone know about HMRC/payroll? New employer deducted paid off student loans
senua · 28/01/2022 13:38

Even if paid on very last day of the month it would need to have been submitted by the end of yesterday.
Can you quote a source for this, please. I thought it was "Send the FPS on or before your employees’ payday" (my bolding), to quote the current HMRC page that I found.

Toanewstart22 · 28/01/2022 13:39

Student loan is mentioned in the p45. Only to say that I'm not required to pay it.

That’s odd

Comefromaway · 28/01/2022 13:43

@senua

Even if paid on very last day of the month it would need to have been submitted by the end of yesterday. Can you quote a source for this, please. I thought it was "Send the FPS on or before your employees’ payday" (my bolding), to quote the current HMRC page that I found.
Exactly. Our FPS was due today for example.
JenniferWooley · 28/01/2022 13:50

@senua

Even if paid on very last day of the month it would need to have been submitted by the end of yesterday. Can you quote a source for this, please. I thought it was "Send the FPS on or before your employees’ payday" (my bolding), to quote the current HMRC page that I found.
Even if the FPS has been sent early this can still be corrected and an additional FPS can be sent with correction to an earlier submission selected as the reason.

If it isn't, in theory your employer should receive a notification from HMRC for the February pay run advising that no student loan is to be deducted - this may not refund the money deducted for January.

At this late stage, payroll people don't like faffing about with changes (I know this because I am one) but if it has been due to their error then they should sort it.

Original poster
Lucia23 · 28/01/2022 13:57

This is the impression I get @JenniferWooley. That he can't be bothered. And like you say, this doesn't fix the amount that has already been deducted

I've been in touch someone who works on payroll in another department as they are going to let me know what should happen - they are also quite senior so may be able to move this along

OP posts:
senua · 28/01/2022 13:57

At this late stage, payroll people don't like faffing about with changes (I know this because I am one) but if it has been due to their error then they should sort it.
Grin I'd rather faff now, in the same month, that faff in the subsequent month!

TheDoveFromAboveCooCoo · 28/01/2022 13:59

@senua

Even if paid on very last day of the month it would need to have been submitted by the end of yesterday. Can you quote a source for this, please. I thought it was "Send the FPS on or before your employees’ payday" (my bolding), to quote the current HMRC page that I found.
I am discussing payments and closing payroll - not the FPS.

If paying on the 31st BACS should have been sent yesterday.

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