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Confused about hours and hourly rate

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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empire
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Confused about hours and hourly rate

Post by empire » Thu Mar 16, 2017 12:34 am

Hi
I have a confusion about hours and rate,can some one specially senior members can help me out to solve this.

1.One of my employee worked for 12 months and salary was £ 1000
2. Second employee worked for 12 months and salary was £ 1266.66

Problem is on payslip accountant never showed the hourly rate and hours for both of them,now i dont know how to adjust this because i tried to multiply different hours and minimum rate but could not get to accurate figure of £ 1000 or £ 1266.66.

Please help me to solve this problem as i have to apply for my extension in one month time.

sm12
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Re: Confused about hours and hourly rate

Post by sm12 » Thu Mar 16, 2017 1:08 am

How many hours of work did your employees put in per month/year?

You can divide the yearly pay by the total number of hours worked in the year.

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zimba
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Re: Confused about hours and hourly rate

Post by zimba » Thu Mar 16, 2017 1:25 am

If you paid the employee £12,000 annually, divided that by 52 weeks you get £230.77 per week.
Divide that by the hours worked a week (min is 30 hours per week for full time) you get the hourly rate of £7.69
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

Amz
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Re: Confused about hours and hourly rate

Post by Amz » Thu Mar 16, 2017 2:23 pm

one of my friends got his visa approved. In the letter from accountant he just mentioned the annual salary (they were paid a fixed annual salary) and the contracted hours per week (35 hours per week) and nothing else. It was for HO to calculate the number of hours and hourly rate and his visa was accepted.

I an not 100% if this is the minimum requirement or you have to mention the number of hours and hourly rate separately as well on accountant letter.

*** Employee contracts were attached with the application as well.

empire
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Re: Confused about hours and hourly rate

Post by empire » Thu Mar 16, 2017 3:05 pm

Sam,both employees were doing marketing job and were on annual contract.
Zimba88,thanks for your reply.Problem which i see is that £ 1000 was gross salary and after deducting Ni net salary comes to £959.56 where Ni already paid to hmrc.If i make calculation according what you told then there comes difference in pens which will change the net salary as well while my business bank account showing £ 959.56 paid for 12 months.
Can you please further explain me. thanks

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zimba
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Re: Confused about hours and hourly rate

Post by zimba » Thu Mar 16, 2017 3:21 pm

Hourly rate is calculated based on the gross salary.
The payslip shows clearly what was the net pay to an employee after the various deductions.
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Rox123
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Re: Confused about hours and hourly rate

Post by Rox123 » Thu Mar 16, 2017 4:10 pm

empire wrote:Sam,both employees were doing marketing job and were on annual contract.
Zimba88,thanks for your reply.Problem which i see is that £ 1000 was gross salary and after deducting Ni net salary comes to £959.56 where Ni already paid to hmrc.If i make calculation according what you told then there comes difference in pens which will change the net salary as well while my business bank account showing £ 959.56 paid for 12 months.
Can you please further explain me. thanks
Zimba is correct on this.

I will advise you seek another Accountant to help you look into your current accountant's record and use it to come up with the figures you need. Some of them have customised softwares that will figure all out showing you the rate, both employer and emloyee NIC, tax, monthly pay, total salary paid to date, total tax/NIC paid to date etc.

From these figures, the new Accountant will be able to help you draw up payslips that would cover the entire period as this is one of the requirements.

It should not cost must for a good Accountant to do the new sets of payslips for you. It's better than going through the emotional pains of refusal and also paying a huge some of money for another application.

These are my thoughts and I hope you'll find it useful.

empire
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Re: Confused about hours and hourly rate

Post by empire » Fri Mar 17, 2017 11:37 am

Zimba88 thanks for further explanation
Amz making annual contract for employees and attaching them with application really make sense.
I have consulted with my accountant and he finds this solution very logical because by doing this we can
solve hours and rate issues.Thanks for your contribution.
Rox123 appreciate your concern about accountant eventually i have to change my accountant for upgrading
all records.

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