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John wrote:Not sure I understand the reason for your question. If your employer is paying you a salary then it is a legal requirement for that employer to issue you with a payslip, detailing any deductions. Are you saying that your employer is failing as regards that requirement?
John wrote:I can't see how that helps. Indeed it is liable to confuse and cause queries to be raised.
You do get payslips, don't you?
John wrote:Why on earth do you think that showing expenses might cause a problem?
But those which are part of salary plan and are present in your payslip.John wrote:Ah I see! An interpretation of that is that you are trying to give the impression that you are earning more than you actually are earning from your employer.
Expenses are not earnings!
John wrote:So are we talking about allowances, or about expenses?
I suspect we are talking about things like traveling expenses, and in my opinion, absolutely no way could that be classed as an allowance.
Indeed :-
...... and are not paid to reimburse the applicant for money he/she has previously spent.
-: so it seems pretty clear to me, and no one on this board forced him/her to write those words, that those amounts cannot possibly be treated as allowances. They are expenses ... pure and simple.The problem is that the payslips will show some small reimbursed expenses I do not want to show.
John wrote:The OP has told us :-
-: so it seems pretty clear to me, and no one on this board forced him/her to write those words, that those amounts cannot possibly be treated as allowances. They are expenses ... pure and simple.The problem is that the payslips will show some small reimbursed expenses I do not want to show.
mvent00 wrote:You are right John, but there are exceptions. Such as, if these are part of salary plan, whether you do traveling/schooling/take an accommodation or not, these will be deposited in your account, and will be part of your payslip. These are not a reimbursement of previously spent money. I think in this case, these allowances are part of income and fulfill these criteria:
123. We will only include allowances (such as those for accommodation or schooling for an applicant’s children) in the assessment of an applicant’s previous earnings if they are part of an applicant’s remuneration package and are not paid to reimburse the applicant for money he/she has previously spent.
http://www.ukba.homeoffice.gov.uk/sitec ... 310309.pdf page 23 of 44.
chetanojha wrote:If I am getting the context right if OP get letter from employer(which only contain gross figure and net figure as mentioned in this link) this should solve his problem without making it complex. It would be straight forward way to put the details without revealing reimbursement details.
Yes, I would agree with mvent when reimbursement is part of salary package it can be used. When I applied for my initial HSMP i presented payslips with reimbursements amount(adding up in gross) and it was accepted(and many other people applied the same way for Tier 1 from the same company). I mainly reimbursed annually fly-back to india which was paid by my company(part of my renumeration package). The reimbursement raised my gross figure by approx £1700 and i sail through. I don't understand why this would not considered now. In fact to reach the threshold many people even book their flight in higher class so they can get more amount reimbursed
mvent00 wrote:You are right John, but there are exceptions. Such as, if these are part of salary plan, whether you do traveling/schooling/take an accommodation or not, these will be deposited in your account, and will be part of your payslip. These are not a reimbursement of previously spent money. I think in this case, these allowances are part of income and fulfill these criteria:
123. We will only include allowances (such as those for accommodation or schooling for an applicant’s children) in the assessment of an applicant’s previous earnings if they are part of an applicant’s remuneration package and are not paid to reimburse the applicant for money he/she has previously spent.
http://www.ukba.homeoffice.gov.uk/sitec ... 310309.pdf page 23 of 44.
Don't know how company calculated NI or tax but people always received the correct salary without any deduction for example if somebody is receiving £2100 (net), after £500 reimbursement he will get £2600. Though gross varies in both the case Obviuosly companies are taking care of NI and tax issue to make sure it is legal and as per the HMRC regulations. Also note clause from guidance notes for this travel allowance (which you can call expenses if needed).Sushil-ACCA wrote: IF reimbursement is not part of taxable income or tax and NI is not deducted than no way reimbursement is part of salary even on employer letter it is so
chetanojha wrote:Don't know how company calculated NI or tax but people always received the correct salary without any deduction for example if somebody is receiving £2100 (net), after £500 reimbursement he will get £2600. Though gross varies in both the case Obviuosly companies are taking care of NI and tax issue to make sure it is legal and as per the HMRC regulations. Also note clause from guidance notes for this travel allowance (which you can call expenses if needed).Sushil-ACCA wrote: IF reimbursement is not part of taxable income or tax and NI is not deducted than no way reimbursement is part of salary even on employer letter it is so
124. We will only accept allowances as earnings if they are declared in the applicant’s payslips and there is a contractual obligation on the employer’s part to make these payments.
As long as you can provide corroborative evidences it is fine.shubi81 wrote:It very much looked like from the original post ..that he was quering abt showing salary while contracting here.
My query is similar & rather straightforward, these accountants stuff , expenses doesn't come normally in perm roles ..it comes only when you contract .. & probably I read somewhr when someone did have some trouble in extending his Visa after submitting his contract docs !
Can someone share their views whether payslips provided by Umbrella companies are acceptable for extention of Tier1 ? I presume they'll show only the salary part in the payslip excluding the expenses .. ?
Many Thanks
Sabi
So how would that help you? As you readily admit, your earnings do not include the amount of reimbursed expenses.These explanations should include a breakdown of the gross salary, tax deductions and dividend payments made to the applicant. The total gross salary and dividend payments should be the same as the applicant’s earnings
John wrote: So how would that help you? As you readily admit, your earnings do not include the amount of reimbursed expenses.
For the future, and for others, you are not required to claim the expenses deduction direct from your employer, the umbrella company. If you don't claim those expenses the earnings will be higher!
After the end of the tax year, nothing to stop you claiming the expense deduction direct from HMRC, and getting a tax rebate. The result, just looking at tax, will be the same, eventually, but there will still be a detrimental effect as far as NI is concerned.