Ceased employment and student loans

This sounds like a known issue with HMRC’s systems; a very small number of students' employments have been incorrectly ceased.

This has prompted HMRC's systems to automatically inform the Student Loans Company (SLC) that those individuals had left their employment. As a result, SLC have issued letters to these borrowers, querying their employment status.

HMRC’s advice is to respond to the SLC saying you have not ceased employment or changed employer.

HMRC are now in the process of correcting their systems and are due to complete this within the next few weeks.

Date published 1 Sep 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.