Difference in earning in Payslips and P60 ... please Help

[destiniation_london]

Hi,

I just have been going through this Forum from quite a long time ... This forum and the forum members really rocks !!!

I have been thinking to apply for HSMP somewhere in the month of october, just wondering if some one can please help me in clarifying my doubt.

I am here on UK assignment from my indian company. While my stay in UK, i am been paid allowance and no salary in india. My company pays UK taxes on our behalf and at the end of the month we just receives net salary in hand.
My Employer do gives us P60 form at the end of the financial year.

The allowance component in payslips is broken into "Allowance1' and "Allowance2".. and the company just pays tax for "Allowance2" component .... hence the earning shown in P60 is the summation of "Allowance2"...

My concern is that considering just allowance 2 figure (as shown in P60) i do not earn enough point for HSMP approval...

However I earn enough points if considered my net salary (Allowance 1 + Allowance 2) for HSMP approval ...

Would that be a issue while considering my application or I am just been too much worried


I hope I am clear...

[destiniation_london]

Any help with regard to this would be appreciated

[SYH]

this has been discussed before and yes it would be a problem
Check prior thhreads

[destiniation_london]

kindly can you give me the link of the thread where this has been discussed... aneways thanks for your prompt answer ....

[pantaiema]

If the difference just alittle bit beacuse of Pension contibution, I believe it will not be a problem. Caseworker know that pension controbution is non taxable.

However if the difference is significant, and I believe U & you company know the answer why ? then it will be a problem

Hi,

I just have been going through this Forum from quite a long time ... This forum and the forum members really rocks !!!

I have been thinking to apply for HSMP somewhere in the month of october, just wondering if some one can please help me in clarifying my doubt.

I am here on UK assignment from my indian company. While my stay in UK, i am been paid allowance and no salary in india. My company pays UK taxes on our behalf and at the end of the month we just receives net salary in hand.
My Employer do gives us P60 form at the end of the financial year.

The allowance component in payslips is broken into "Allowance1' and "Allowance2".. and the company just pays tax for "Allowance2" component .... hence the earning shown in P60 is the summation of "Allowance2"...

My concern is that considering just allowance 2 figure (as shown in P60) i do not earn enough point for HSMP approval...

However I earn enough points if considered my net salary (Allowance 1 + Allowance 2) for HSMP approval ...

Would that be a issue while considering my application or I am just been too much worried


I hope I am clear...

[destiniation_london]

Thanks a lot Panteima for your reply.

Don't know whether the allowance 2 is for 'pension'...it's just printed as "allowance 2" on the payslips and allowance 2 is almost the same as allowance 1 ...

so on the last payslip of the financial year the amount corresponding to "Total Gross Pay YTD" is 12K and "Taxable Pay YTD" is 6K... and this 6K is the amount shown on the P60...

[mepals]

Hi destiniation_london

Have you applied for HSMP? Just wanted to know how did you manage the difference between P60 and Wage slips?

Thanks,

[destiniation_london]

No, i am planning to apply at the end of the month .. at the moment i am in the process of clarifying my doubts and gathering all documents..

Can you shed some light on the issue ... do you think wud that be any isseu with the case worker. ..

[mepals]

Even I am not sure on this. My feeling is that it should not be an issue if we provide bank slips and employer letter. I think we will have to take that chance.

[pantaiema]

It is not common that the difference is 50%. TH pesnion contirbution is nomally around 5% NOT 50%.

Like any other people in this forum, you or probably your company need to be able to explain whay it is so ?

Thanks a lot Panteima for your reply.

Don't know whether the allowance 2 is for 'pension'...it's just printed as "allowance 2" on the payslips and allowance 2 is almost the same as allowance 1 ...

so on the last payslip of the financial year the amount corresponding to "Total Gross Pay YTD" is 12K and "Taxable Pay YTD" is 6K... and this 6K is the amount shown on the P60...

[mepals]

I checked with my company and they say that they have agreement with UK IR which gives special exemption on the employee compensation. This is only because the company is a foreign employer.

[pantaiema]

I do not know about your company special exemption fpr tax. I have read in this forum that some indian companies got tax exemption but whether it is acceptable by HSMP I do not know.

I have not read any on theguide lines or FAQ mentioning about tax exemption. But what U could do is, Explain in in the cover letter. If it is legal then the caseworker must know about it.

I checked with my company and they say that they have agreement with UK IR which gives special exemption on the employee compensation. This is only because the company is a foreign employer.

[hussainkothari]

I have the same problem as yours. My p60 shows very less income to what I have actually earned. Could you please let me know how you have submitted your case.

Hussain

Hi,

I just have been going through this Forum from quite a long time ... This forum and the forum members really rocks !!!

I have been thinking to apply for HSMP somewhere in the month of october, just wondering if some one can please help me in clarifying my doubt.

I am here on UK assignment from my indian company. While my stay in UK, i am been paid allowance and no salary in india. My company pays UK taxes on our behalf and at the end of the month we just receives net salary in hand.
My Employer do gives us P60 form at the end of the financial year.

The allowance component in payslips is broken into "Allowance1' and "Allowance2".. and the company just pays tax for "Allowance2" component .... hence the earning shown in P60 is the summation of "Allowance2"...

My concern is that considering just allowance 2 figure (as shown in P60) i do not earn enough point for HSMP approval...

However I earn enough points if considered my net salary (Allowance 1 + Allowance 2) for HSMP approval ...

Would that be a issue while considering my application or I am just been too much worried


I hope I am clear...

[Chirping_Bird]

Guys,

Read thru ur query and thought of providing some piece of mind ot u ppl. I applied for HSMP under the same scenario. However in my case I did not even have a P60 form with me. My employer does not return this to me. So I opted for the exceptional consideration. Provide ur bank statements and payslips. If you can tally both these amounts, the case worker might be willing to consider. Provide a covering letter to state why you are opting for exceptions. Many Indian companies have tax exception for the first 2 years of ur employment in the UK. This is a common practice and the caseworkers should logically be advised about the same. In ur covering letter u cld state any websites for ur company and HR contact name/phone number. This cld give the case worker a chance to cross verify if he needs to and also a confidence that u r not trying to bluff.

But do remember exceptions are fully at the mercy of the caseworker considering ur proofs. So keep ur fingers crossed.

If u r working for one of those Indian Biggies... u can relax as they will be prompt with the rules and regulations in UK. They cannot afford to viloate any norms for their reputation will be at stake if they do anything silly.

btw, I have confirmed my HSMP approval on phone and my documents were sent via airmail to me. It has been close to 4 weeks now and the documents are yet to reach me. Still waiting with fingers crossed. Is there anyone else under similar scenario? If u can provide me some link in this forum related to this... I can find wats happening with the rest of the crowd