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Can redundant payment count as previous earnings under hsmp?

Archived UK Tier 1 (General) points system forum. This route no longer exists.

Moderators: Casa, Amber, archigabe, batleykhan, ca.funke, ChetanOjha, EUsmileWEallsmile, JAJ, John, Obie, push, geriatrix, vinny, CR001, zimba, meself2, Administrator

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caling97
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Can redundant payment count as previous earnings under hsmp?

Post by caling97 » Wed Jun 25, 2008 7:37 pm

Dear ALL,

I have a doubt about previsou earnings, i saw in the Tier 1 guidence, that the redundant payment cannot be counted as previous earnings while the payment in lieu of notice is part of the earnings.

But in the gudiance of HSMP, there is no instructions that whether redundant payment can be counted.

Has anyone know whether redundant payment can be counted as previous earnings under HSMP, or has anyone already got approved by claiming redundant payment as part of earning under HSMP?

Thank you very much in advance! Really appreciate any guidence!

Best regards :-)

vnvijay
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Re: Can redundant payment count as previous earnings under h

Post by vnvijay » Thu Jun 26, 2008 2:39 pm

could you be little more clear on wat your question is?
caling97 wrote:Dear ALL,

I have a doubt about previsou earnings, i saw in the Tier 1 guidence, that the redundant payment cannot be counted as previous earnings while the payment in lieu of notice is part of the earnings.

But in the gudiance of HSMP, there is no instructions that whether redundant payment can be counted.

Has anyone know whether redundant payment can be counted as previous earnings under HSMP, or has anyone already got approved by claiming redundant payment as part of earning under HSMP?

Thank you very much in advance! Really appreciate any guidence!

Best regards :-)

caling97
Newbie
Posts: 32
Joined: Thu May 01, 2008 12:12 am

Re: Can redundant payment count as previous earnings under h

Post by caling97 » Thu Jun 26, 2008 2:46 pm

I mean, if one apply for hsmp, can his redundant payment be considered as part of the previous earnings of salaried employment categoriry?

Anyone can suggest? Thank you very much in advance!

vnvijay wrote:could you be little more clear on wat your question is?
caling97 wrote:Dear ALL,

I have a doubt about previsou earnings, i saw in the Tier 1 guidence, that the redundant payment cannot be counted as previous earnings while the payment in lieu of notice is part of the earnings.

But in the gudiance of HSMP, there is no instructions that whether redundant payment can be counted.

Has anyone know whether redundant payment can be counted as previous earnings under HSMP, or has anyone already got approved by claiming redundant payment as part of earning under HSMP?

Thank you very much in advance! Really appreciate any guidence!

Best regards :-)

vnvijay
Member
Posts: 133
Joined: Thu Sep 20, 2007 12:45 pm
Location: Bangalore
Contact:

Re: Can redundant payment count as previous earnings under h

Post by vnvijay » Thu Jun 26, 2008 2:49 pm

Hi,

my question is re-frame the sentence without using the word "Redundant"?

I want to know what exactly your looking for? wat do you consider as Redundant payment
VJ
caling97 wrote:I mean, if one apply for hsmp, can his redundant payment be considered as part of the previous earnings of salaried employment categoriry?

Anyone can suggest? Thank you very much in advance!

vnvijay wrote:could you be little more clear on wat your question is?
caling97 wrote:Dear ALL,

I have a doubt about previsou earnings, i saw in the Tier 1 guidence, that the redundant payment cannot be counted as previous earnings while the payment in lieu of notice is part of the earnings.

But in the gudiance of HSMP, there is no instructions that whether redundant payment can be counted.

Has anyone know whether redundant payment can be counted as previous earnings under HSMP, or has anyone already got approved by claiming redundant payment as part of earning under HSMP?

Thank you very much in advance! Really appreciate any guidence!

Best regards :-)

caling97
Newbie
Posts: 32
Joined: Thu May 01, 2008 12:12 am

Re: Can redundant payment count as previous earnings under h

Post by caling97 » Thu Jun 26, 2008 2:53 pm

Hello, Redundant payment is the money companies need to pay the employees if they go bankrupt or fire employees who still have a valid contract.
vnvijay wrote:Hi,

my question is re-frame the sentence without using the word "Redundant"?

I want to know what exactly your looking for? wat do you consider as Redundant payment
VJ
caling97 wrote:I mean, if one apply for hsmp, can his redundant payment be considered as part of the previous earnings of salaried employment categoriry?

Anyone can suggest? Thank you very much in advance!

vnvijay wrote:could you be little more clear on wat your question is?
caling97 wrote:Dear ALL,

I have a doubt about previsou earnings, i saw in the Tier 1 guidence, that the redundant payment cannot be counted as previous earnings while the payment in lieu of notice is part of the earnings.

But in the gudiance of HSMP, there is no instructions that whether redundant payment can be counted.

Has anyone know whether redundant payment can be counted as previous earnings under HSMP, or has anyone already got approved by claiming redundant payment as part of earning under HSMP?

Thank you very much in advance! Really appreciate any guidence!

Best regards :-)

geriatrix
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Post by geriatrix » Thu Jun 26, 2008 2:55 pm

vnvijay wrote:my question is re-frame the sentence without using the word "Redundant"?I want to know what exactly your looking for? wat do you consider as Redundant payment
What would the OP ask if you don't want him to use the word which forms the basis of his query?? :lol:

This should enlighten you:
Scots law debt dictionary wrote:Redundancy payment - Compensation payable under statute by an employer to an employee who is dismissed because his job has ceased to exist through contraction, mechanisation and reorganisation etc.
regards
Last edited by geriatrix on Thu Jun 26, 2008 3:01 pm, edited 1 time in total.
Life isn't fair, but you can be!

caling97
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Post by caling97 » Thu Jun 26, 2008 3:01 pm

Hello, yeah, maybe, whatever, anyone knows could this kind of money be considered as previous earning when you claim points in Hsmp? Thank you very much! :-)


sushdmehta wrote:I guess it it payment in lieu of being made redundant - redundancy pay / payment - and is a statutory requirement in some countries (or maybe all, not too sure).

regards

geriatrix
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Post by geriatrix » Thu Jun 26, 2008 3:07 pm

Does your salary slip reflect the payment as "redundancy payment"?

I guess if it is mentioned in the Tier 1 guidance that redundancy payments are not considered as previous income, then my guess is that will not be considered as evidence for HSMP too (even though it might not be so clearly mentioned in HSMP guidance). But this is my personal opinion and not based on actual experience.

Unless you have already filed an HSMP application or are going to do so in the next 2 days, I am afraid Tier 1 roll-out on 30-Jun worldwide would mean that you won't be able to consider it as previous earnings.

regards
Life isn't fair, but you can be!

caling97
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Post by caling97 » Thu Jun 26, 2008 3:15 pm

Hello, Thank you very much for your detailed answer! :-)

It's not reflected as "redundancy payment" in my salary slip, but i don't want to bear the risk if it's obviously cannot be considered as earnings.

i have every documents on hands, so if i can confirm in Hsmp this kind of money is okay for claiming points, i want to post my application right tomorrow:)

sushdmehta wrote:Does your salary slip reflect the payment as "redundancy payment"?

I guess if it is mentioned in the Tier 1 guidance that redundancy payments are not considered as previous income, then my guess is that will not be considered as evidence for HSMP too (even though it might not be so clearly mentioned in HSMP guidance). But this is my personal opinion and not based on actual experience.

Unless you have already filed an HSMP application or are going to do so in the next 2 days, I am afraid Tier 1 roll-out on 30-Jun worldwide would mean that you won't be able to consider it as previous earnings.

regards

geriatrix
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Post by geriatrix » Thu Jun 26, 2008 3:34 pm

caling97 wrote:It's not reflected as "redundancy payment" in my salary slip, but i don't want to bear the risk if it's obviously cannot be considered as earnings.
Then how would UKBA even get to know in their dreams that it is redundancy payment??

Unless someone calls your employer and the person on the phone from your employer end is *stupid* enough to *bring up and highlight* the fact that you are amongst those employees who were given a redundancy payment.

regards
Life isn't fair, but you can be!

caling97
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Post by caling97 » Thu Jun 26, 2008 3:40 pm

Yeah, thank you very much for your comments!

I just want to make everything i submited is genuine to avoid any possible trouble. :)

sushdmehta wrote:
caling97 wrote:It's not reflected as "redundancy payment" in my salary slip, but i don't want to bear the risk if it's obviously cannot be considered as earnings.
Then how would UKBA even get to know in their dreams that it is redundancy payment??

Unless someone calls your employer and the person on the phone from your employer end is *stupid* enough to *bring up and highlight* the fact that you are amongst those employees who were given a redundancy payment.

regards

geriatrix
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Post by geriatrix » Thu Jun 26, 2008 3:46 pm

As long as there is no mention of "redundancy pay" in any of the documentray evidence you are submitting, and no one from your employer's end starts blabbing as explained above, I believe there will be no issue (other than your own conscience hurting you for lying) :wink: .

regards
Life isn't fair, but you can be!

vnvijay
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Post by vnvijay » Thu Jun 26, 2008 4:17 pm

Hey Sir,

I was not able to get the meaning of Redundancy, before i advise. I wanted to make sure i am giving correct advise.
that's ok i learnt some thing!
However i see you very much often replying all of the queries in this board, would like know some information about your self. Like you have UK visa, your nature of work.

VJ

sushdmehta wrote:As long as there is no mention of "redundancy pay" in any of the documentray evidence you are submitting, and no one from your employer's end starts blabbing as explained above, I believe there will be no issue (other than your own conscience hurting you for lying) :wink: .

regards

WoodieG
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Post by WoodieG » Thu Jun 26, 2008 5:48 pm

sushdmehta wrote:
caling97 wrote:It's not reflected as "redundancy payment" in my salary slip, but i don't want to bear the risk if it's obviously cannot be considered as earnings.
Then how would UKBA even get to know in their dreams that it is redundancy payment??

Unless someone calls your employer and the person on the phone from your employer end is *stupid* enough to *bring up and highlight* the fact that you are amongst those employees who were given a redundancy payment.

regards
I'm no expert but if the Home Office see a large one-off payment I'd expect an alarm bell would ring in the caseworker's head and he or she would look into. For what it's worth, I don't believe this can be claimed as income as it hasn't been earned.
________
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Last edited by WoodieG on Tue Mar 08, 2011 5:06 pm, edited 1 time in total.

geriatrix
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Post by geriatrix » Thu Jun 26, 2008 6:17 pm

I would imagine annual bonuses can be, in some cases / industry sectors, pretty high as compared to a monthly salary. So are joining incentives too.

My personal experience says that how these *significant* payments are reflected (or named) in your payslips makes the difference. For example, a significant payment termed as "arrears" or "bonus" won't ring any bells. But yes a "redundancy payment" on the payslip will raise alarm bells, no doubt! And that is why I asked the OP if the payment is specifically noted as such in his payslip.

Please note that I haven't questioned whether redundancy payments can be termed as previous earnings or not. I have only highlighted a loophole in the system. which can help him in his application. At the end of the day, it is OP's decision to include or exclude the redundancy payment from his income calculations.

regards
Life isn't fair, but you can be!

republique
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Post by republique » Thu Jun 26, 2008 8:28 pm

Under Tier 1, redundancy payments can not be included as previous income if it is given in lieu of notice.
If the payment is to cover the salary you were still entitled to under contract, then it can be considered as previous income. So far instance, your contract had 3 months to go but they said you don't have to come in but you will still get paid as normal in the next 3 months, then no problem.
a clue to look for is did they take out NIC out of the payment, if so, then it is income.

caling97
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Post by caling97 » Thu Jun 26, 2008 10:01 pm

Hi everyone,

Thank you very much for all your suggestions and helps! I really appreciate all your comments!

By the way, what is "NIC"? I'm sorry i don't know what does it mean?
republique wrote:Under Tier 1, redundancy payments can not be included as previous income if it is given in lieu of notice.
If the payment is to cover the salary you were still entitled to under contract, then it can be considered as previous income. So far instance, your contract had 3 months to go but they said you don't have to come in but you will still get paid as normal in the next 3 months, then no problem.
a clue to look for is did they take out NIC out of the payment, if so, then it is income.

CoolestGuyC
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Post by CoolestGuyC » Thu Jun 26, 2008 10:12 pm

NIC=National Insurance Contribution

caling97
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Post by caling97 » Thu Jun 26, 2008 10:23 pm

Thank you very much! :)
CoolestGuyC wrote:NIC=National Insurance Contribution

inputsOnHSMP
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Earnings

Post by inputsOnHSMP » Mon Feb 16, 2009 6:14 pm

Earnings may include, among other things:

* salaries (including full-time, part-time, and bonuses);
* earnings from self-employment;
* earnings from business activities;
* statutory maternity pay and contractual maternity pay;
* allowances (such as accommodation, schooling or car allowances) that form part of your remuneration package;
* dividends paid by a company, where it is a company in which you are active in the day-to-day management, or where you receive the dividend as part or all of your remuneration package;
* income from property rental, where this forms part of your business; and
* payment in lieu of notice (a payment made instead of requiring an employee to work the normal period of notice when leaving a job).


Further, the redundancy payment that is not considered for earning is the statutory one.

That still leaves other payments like the ones that you get in lieu of salary when the company goes into administration..
if anyone can throw more light on it, it would be helpful

Sky_High
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Post by Sky_High » Mon Feb 16, 2009 6:42 pm

In UK you do not pay tax on redundancy so your payslip will show it clearly. If you have big and unusual amount on one of your payslip than case worker will be interested to investigate.

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