Payslips for ILR with backdated salary sacrifice

[isu_bk]

Hi All,

I've have question regarding salary sacrifice in my payslip. Currently my salary is slightly above 35K limit. My employer lets us sacrifice £243 a month for childcare vouchers. However I forgot to do this at the start of the financial year. Anyway we can backdate it within a financial year, which I did in January 2018. I asked them to backdate it to April 2017, meaning a sacrifice of £2430 (10 * £243). Therefore my take home pay in January is £600. Will that be a problem in my ILR application?

Many thanks for your help, it is always much appreciated.

[isu_bk]

Could someone please help, going into panic mode.
As always your help is much appreciated.

[lanrezy]

Hi All,

I've have question regarding salary sacrifice in my payslip. Currently my salary is slightly above 35K limit. My employer lets us sacrifice £243 a month for childcare vouchers. However I forgot to do this at the start of the financial year. Anyway we can backdate it within a financial year, which I did in January 2018. I asked them to backdate it to April 2017, meaning a sacrifice of £2430 (10 * £243). Therefore my take home pay in January is £600. Will that be a problem in my ILR application?

Many thanks for your help, it is always much appreciated.

Hi,

There is no need to go into panic mode since it is a genuine work related adjustment but you do need to be careful.

1. Home office will look at your gross salary which is salary before any deductions. The gross salary should be at £35K or above if applying before April(assuming you are on Tier 2).

Question: Was the deduction done before the monthly gross salary or after?

Reason being that I had a similar situation where the salary sacrifice was done before the monthly gross salary and if you multiply that by 12 it will fall short of £35K. So I had to opt out of that so that everytime the gross salary is calculated, it reaches the £35K threshold by having the all deductions done after monthly gross salary. Your take home pay of £600 will not matter.

Just multiply your gross salary on the payslip before deduction by 12. If the answer is at or above £35K and you are applying before april, then you will be fine.

Cheers

[isu_bk]

Many thanks for coming to rescue, much appreciated.

My salary sacrifice is done before tax.

In my January salary slip it says,

Salary : 3108.00
CCV Sacrifice: 2430.00
Pension Sacrifice: 62.00

Payment: 616.00

In my February salary slip it says,

Salary : 3108.00
CCV Sacrifice: 243.00
Pension Sacrifice: 62.00

Payment: 2803.00

Tax and NI information is in the next column.

So am I correct in thinking my gross salary is £2803.00 which gives me a gross salary of £33,636. So I guess its a bit risky to apply for ILR with these scarifies in my payslip?

Many thanks,

[lanrezy]

Many thanks for coming to rescue, much appreciated.

My salary sacrifice is done before tax.

In my January salary slip it says,

Salary : 3108.00
CCV Sacrifice: 2430.00
Pension Sacrifice: 62.00

Payment: 616.00

In my February salary slip it says,

Salary : 3108.00
CCV Sacrifice: 243.00
Pension Sacrifice: 62.00

Payment: 2803.00

Tax and NI information is in the next column.

So am I correct in thinking my gross salary is £2803.00 which gives me a gross salary of £33,636. So I guess its a bit risky to apply for ILR with these scarifies in my payslip?

Many thanks,

In January, was the tax and NI deducted from £616?
In February, was the tax and NI deducted from £2803?
If these values (£616 and £2803) are what goes into ur bank account then your gross salary is actually £3108 and you should be fine. Although there is no record of tax or NI being taken from your calculation.
If you can try and type out how ur payslip is done with the percentages taken without ur personal details, I can help analyse it for you.

Like I said earlier, I was in similar situation about 10 months to my ILR.

Cheers

[Akorotaeva]

Salary sacrifices are always deducted before tax.

I don’t think it matters: what counts is your GROSS salary BEFORE any deductions are taken. I.e what would your employer say is your annual gross salary?

[lanrezy]

So I guess its a bit risky to apply for ILR with these scarifies in my payslip?

Just so it is clear, it is not risky having salary sacrifice on payslip. It is allowed and will not affect ILR. I can tell you that I still had salary sacrifice for pension and childcare on my payslip when I did my ILR about a month ago.
What is important is making sure that the salary sacrifice is done at the appropriate stage i.e after gross salary is mentioned.

My advice again, check your payslip look for where it is written gross salary. If gross salary is not written anywhere then make sure that your
total salary - childcare - pension - NI - tax = take home salary

total salary multiply by 12 = your annual salary = greater than £35K (if applying before april)
The payslip should normally be self explanatory.

[isu_bk]

Thank you both for helping me.

My pay slip do not have the word "gross salary".
Left column looks like this

Code: Select all

Pay Item                This Period
SALARY                   3108.33
CCV SACRIFICE             243.00- 
SAL SAC PEN % 1            62.17-
PAYMENT TOTAL            2803.16

Right column looks like this.

Code: Select all

Deduction Item       This Period
TAX                   378.00
N.I.                  254.78 
DEDUCTION TOTAL       632.78

I have few questions hoping to get your help:

• In the above payslip should I use 3108.33 or 2803.16 as my gross salary?

• How many payslips should I submit?

• In terms of bank statements, do I need to show my account where the salary goes or if I have a separate account for savings account should I show that?

• In the application form, for question 5.3 "If so, what is your pay each month after income tax and other deductions?" should I put £ 2803

• For question 5.4, "Does a relative or friend of you or your partner, or both of you, regularly
  give you money?" If I say yes, will it be a problem? Basically my wife and I share the cost of rent and childcare. I do all the payments and she transfers some money (£1000) to my account as the payments are set to take money from my account.

Thanks a lot all for helping me out, it started to feel a bit crazy.

[lanrezy]

My pay slip do not have the word "gross salary".
Left column looks like this

Code: Select all

Pay Item                This Period
SALARY                   3108.33
CCV SACRIFICE             243.00- 
SAL SAC PEN % 1            62.17-
PAYMENT TOTAL            2803.16

Right column looks like this.

Code: Select all

Deduction Item       This Period
TAX                   378.00
N.I.                  254.78 
DEDUCTION TOTAL       632.78

From this information. You did not state exactly the money that goes into your bank account but by my calculation,
Gross Salary = 3108.33
Salary after all deductions = 3108.33 - 243 - 62.17 - 378 - 254.78 = 2170.38

I have few questions hoping to get your help:

• In the above payslip should I use 3108.33 or 2803.16 as my gross salary?

Gross Salary = 3108.33

• How many payslips should I submit?

3 Months Payslip should be okay

• In terms of bank statements, do I need to show my account where the salary goes or if I have a separate account for savings account should I show that?

The account where the salary goes.

• In the application form, for question 5.3 "If so, what is your pay each month after income tax and other deductions?" should I put £ 2803

That should be the amount that goes directly into your bank account.
Considering the payslip shown above and by my calculation,
that should be Salary after all deductions = 3108.33 - 243 - 62.17 - 378 - 254.78 = 2170.38
Correct me if I am wrong about my calculations

• For question 5.4, "Does a relative or friend of you or your partner, or both of you, regularly
  give you money?" If I say yes, will it be a problem? Basically my wife and I share the cost of rent and childcare. I do all the payments and she transfers some money (£1000) to my account as the payments are set to take money from my account.

That should be No. The question is quite self explanatory, Relative or friend of (you or your partner). You or your partner stands as one entity.

[isu_bk]

Thanks a lot Lanrezy for your support. Sorry for missing out that information, your calculation is correct.

At the bottom of my payslip it says,

Code: Select all

Payment Method	NET PAY
Bank		2170.38

So for the question 5.3, I'll put £ 2170.38

And I clearly misunderstood the question 5.4. I interpreted the question as "Does a relative or friend or your partner, regularly give you money?" And thanks a lot for clarifying this for me.

Many thanks

[lanrezy]

So for the question 5.3, I'll put £ 2170.38

Correct

Feel free to ask any more questions. If I cannot help, I am sure other members will be able to help.
I wish you the best of luck in your application.

[isu_bk]

Thanks a lot Lanrezy. It is a good feeling knowing that there are people out there to help. Will keep you and rest of the forum members updated about how it went. Anyway, I'm long way from applying, currently preparing for the test. Hopefully try to submit the application before end of March.