Query regarding Per Diem

[UKVisit]

Hello Everyone,

I have a quick question regarding per diem:

Apart from regular salary, I get per diem every month from my company which is not taxable. But it is not a reimbursement for any expenses made. These Per Diem do appear in my bank statement along with the regular earnings with similar name 'company name-deposit pay date'.

Please note it is not for any expenses and neither it is a reimbursement.

As I am aware, Non taxable component(s) of salary can be included in earnings to claim points, if the expenses are not reimbursed to applicant for money they had previously spend. It is as per point 121 & 122 of T 1(G) guideance.

Since my Per Diem is not a reimbursement and is given by company to cover the living costs. Can I consider it in my previous earning?


Apart from expenses re-imbursed (which cannot be claimed), can overtime be considered into previous earning?


Thanks in advance.

[geriatrix]

Read para 122 & 123 also.

Is this per diem included in your payslip? If so, under what heading? Were you not posted in UK (or any place other than your base office) would the company pay you per diem??

Per Diem, technically, refers to daily employee expenses or reimbursements. Whether you can use it to claim points or not depends on how it is shown on your payslips.


regards

[UKVisit]

Hi

My per diem is not included into my payslip but it is clearly mentioned into my employement letter? I am posted into UK on Tier 2 (Intra Company), my base location is India.

Since my Per Diem is not a reimbursement and is given by company to cover the living costs. Can I consider it in my previous earning?


Apart from expenses re-imbursed (which cannot be claimed), can overtime be considered into previous earning?

Thanks

[geriatrix]

My per diem is not included into my payslip

If payslips is one of the 2 evidences you wish to submit to prove your earnings, then I think you answered your own question!

Company pays you per diem for your expenses in UK (living cost, travelling cost, food etc.) and not because it is part of your "income or salary". Does your company pay per diem to employees posted in India? Because if it is part of "salary" then every employee should be paid! Right??

This said, it's not that it cannot be claimed! But in order to claim it, it must either be shown in the payslips (if using payslip as evidence) or clearly mentioned in an employer letter, and perhaps also guised under a fancy heading other than "per diem".


regards

[UKVisit]

Hi,

My per diem is not included into my salary slip and I have separate slip for it. Every employee who is coming to UK payroll from India on Tier 2 (Intra Company Transfer) are supposed to get it.

Tier 1General Guidance:

point 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;


122. 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;

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.

My per diem is part of my remuneration package for which there is a contractual obligation on employer#s part to make these payments and these are not reimbursed for money I have already spend. I believe "such as" in points 121 to 124 is not specific to only accommmodation, car allowance or schooling of applicant's children.

Please note It is a part of total remuneration package and while applying Tier 2 (Intra Company Transfer), it is considered into earning. Since I got 20 points of earning > £24,000 which is only if I include my per diem into this.

Please advise.[/list]

[crowbar6]

Hi,

My per diem is not included into my salary slip and I have separate slip for it. Every employee who is coming to UK payroll from India on Tier 2 (Intra Company Transfer) are supposed to get it.

Tier 1General Guidance:

point 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;


122. 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;

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.

My per diem is part of my remuneration package for which there is a contractual obligation on employer#s part to make these payments and these are not reimbursed for money I have already spend. I believe "such as" in points 121 to 124 is not specific to only accommmodation, car allowance or schooling of applicant's children.

Please note It is a part of total remuneration package and while applying Tier 2 (Intra Company Transfer), it is considered into earning. Since I got 20 points of earning > £24,000 which is only if I include my per diem into this.

Please advise.[/list]

As your per diem is fixed for each month and it is not used to reimburse monies previously spent, you are allowed to include it in previous earnings. Now the tricky part is that you have to show 2 evidences for each of pay slips and bank statements:
- One set of pay slips for your base salary with corresponding bank statement.
- Second set of pay slips for your per diem with corresponding bank statement.

The above worked for me when I first applied for HSMP way back in 2007. I too got paid a base salary in India and a per diem in UK as part of my compensation package. As long as you are able to source the pay slips and bank statements for both the base salary and per diem, you will be fine.

[robbyuk]

Hello Friends,

I have a similar query.

I also get per diems from my employer and in addition to the per diems, I get another allowance for my HRA. The amount has to be reimbursed from it and the balance amount is paid to me after tax.

Can I include this component as a part of my earnings?
Guys please help because if I cant include this, I am gone... I wouldn't be able to claim enought points