Student Loan 'Notice to Emoployer to Start Student Loan Deductions'

[haggis1984]

Hi,

 

I trade through my own limited company.

 

 

My accountant has received a letter from HMRC, addressed to my company, stating that student loan deductions must start next month.

 

My position is that any alleged debt is statute barred. Reading through other threads on this forum has confirmed this.

 

What is my next step?

 

 

The letter says that a penalty can be charged to my company if the deductions do not start next month.

 

I would send the standard statute barred letter.

 

 

However since this has gone through my company is there any other action that I need to take to avoid incurring penalties?

[haggis1984]

Bump

[BazzaS]

Hi,

 

I trade through my own limited company. My accountant has received a letter from HMRC, addressed to my company, stating that student loan deductions must start next month.

 

My position is that any alleged debt is statute barred. Reading through other threads on this forum has confirmed this.

 

What is my next step? The letter says that a penalty can be charged to my company if the deductions do not start next month.

 

I would send the standard statute barred letter. However since this has gone through my company is there any other action that I need to take to avoid incurring penalties?

http://www.consumeractiongroup.co.uk/forum/showthread.php?114834-can-i-use-statute-barred-on-a-1998-student-loan/page2

 

When was your student loan taken out?

If that thread is correct they can pursue a post-98 loan through PAYE, even after 6 years.

 

 

http://www.freemanjones.co.uk/iva/when-does-a-debt-become-statute-barred-0-3839-0.htm Notes:

Student loans from after 1998 are 'income-contingent', and can therefore be automatically deducted from your salary.

 

If HMRC have instructed the company relating to PAYE : the company and then the directors may well incur liability if they fail to act.

[haggis1984]

Do you know how that applies to income drawn as dividends if the salary is below the student loan repayment threshold?

[BazzaS]

Do you know how that applies to income drawn as dividends if the salary is below the student loan repayment threshold?

 

No, at least no for how it affects your PAYE through the company

 

Have HMRC set a schedule for the company?

Amended your tax code??

 

Dividend shoudn't be directly affected (as far as the company is concerned) by an amended PAYE tax code, but it may catch up with you personally when you have to do your personal return for tax on dividends ....