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Tier 1 Policy Guidance wrote:121. Earnings may include, among other things:
• salaries (includes 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 an applicant’s remuneration package;
• dividends paid by a company in which the applicant is active in the day-to-day management, or where the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, where this forms part of the applicant’s 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).
122. Unearned sources of income that we will not consider as previous earnings include:
• expenses (such as accommodation, schooling or car allowances) that reimburse the applicant for money he/she has previously spent;
• dividends, unless paid by a company in which the applicant is active in the day-to-day management, or unless the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, unless this forms part of the applicant’s business;
• interest on savings and investments;
• funds that were inheritedpaid to the applicant as a pension;
• expenses where the payment reimburses the applicant for money he/she has previously spent;
• redundancy payment;
• sponsorship for periods of study;
• state benefits; or
• prize money or competition winnings, other than where they are directly related to the applicant’s main profession or occupation.
Allowances
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.
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.
