Thanks Rory... I hadn't really thought of talking to hm rev. Will do that, rather than contact SLC. I don't think that I have been "allowed" to opt out of the PAYE payments. There's no reason why I should. Rather I think the whole system broke down when my last employer missed a box on P45... ah well!

Thanks for your answers rory and noomill060. rory32 - I'm not a contractor. I missed having my PAYE transferred as my previous employer didn't tick the box that permits this on my P45. I figure the only reason I haven't been asked to pay is that SLC are badly run, hence my getting no statement since '03, and no chase for what I could be paying. I was staggered that the £3000 I know I have paid to them hadn't registered in my account, and frankly dubious about transferring any more cash into this "black hole". I'm not proactively trying to avoid the debt, but am I actually obliged to pursue a creditor who isn't seeking payment?! I calculate I would be paying a min of around £500/month now, so was just a bit worried if they chased me for this amount backdated for 18 months! Oh and could you explain the tax bill thing? I though loans were out of post-tax earnings - why would that affect my bill?

Hi, I am the proud owner of a large new style student loan. I started repayments on this in late '04. In mid '06 I moved jobs, and ceased PAYE on the loan (HR didn't tick the box on my P45 and I didn't chase). At one stage I phoned SLC about this to find out how to start this up again and enquired about my balance (this was in late '06). They told me they had received nothing from HM Rev and customs. I know I have paid at least £2800. The other weird thing is that they have sent me nothing, not even a statement since my final statement when I left uni in '03. Disillusioned, I made no effort to re-start my PAYE, choosing instead to save the money. However as the interest rate on the loan has now risen to 4.8%, I am now considering restarting payment. If I phone them, will they demand full payment for the time I have lapsed, and will they have just cause to do so? Is it worth me holding out 12 years to try and get rid of it?! Thanks