Self Assessment and Student Loan Payments - they want £2000 NOW!?!?

[Tamashii]

OH was self employed up until 2 years ago. He has already been asked for about £2000 through the Self Assessment Tax forms and we had to get a bank loan to pay it as we are skint.

Now he has been paying Student Loans through PAYE as he is employed by a company now and no longer self employed. He has just had ANOTHER letter in demanding another £2000 for tax year ending April 2009. For the first 4 months of the year he was still self employed but then started paying Student Loan repayments through his new job.

We can not afford to pay this now and they are threatening daily interest so we are basically f*cked.

Can anyone help advise us on this? TIA

Can you call them and explain the situation and work out a payment plan with them? Companies are usually pretty good if you talk to them. It seems that if you try and work with them and show willing iyswim they tend to be nicer than if you just stonewall them (not saying that is what you are/going to doing/do.)

Thanks. Since it is the Tax Office that deal with this side of things and for some reason not the Student Loans Company OH is a bit worried. This is the second time they have asked for this kind of money - it makes no sense. Think your idea is def the only way to go though since we can not pay this amount. WTF do they think people are sitting on cash savings at all at the moment far less enough savings to go "Oh yeh, here you go have a couple of grand...." just like that?!? Am soooooo seething over this. He is already paying a tonne of his pay every month!

Sorry - just what a shit start to the weekend. Sucks ass. We are struggling to pay the f*cking mortgage far less hand over £2000 before 10th August! What planet do they live on? Argh!

If he was paying back student loans via PAYE you need to include this in his tax return, otherwise they will simply calculate any student loan repayment on his total income for that year. I would give the tax office a ring and explain that all PAYE sources for 2008/09 have alread had student loan amounts deducted. The total amount deducted for the full tax year should appear on his P60.

We were in a similar position when my husband's employer forgot to deduct his SL for 2 years. We ended up with a £1300 bill, they agreed am installment plan of £20 per week although they charged interest on the o/s amount but it is less than a banl loan. Another option is to get them to alter your hubby's tax code so he pays slighlty more tax via PAYE at work. This will smooth the impact. In our case the employer were completely at fault as they had received an instruction from HMRC to deduct SL repayments. They suffered no penalty. This was four years ago and thankfully it is all repaid.