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Bonus and commission

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

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ozgrant
Newbie
Posts: 33
Joined: Thu Mar 04, 2010 10:50 am

Bonus and commission

Post by ozgrant » Wed Apr 07, 2010 1:12 am

There is no mention of bonus and commission in the new guidance doc as being allowed for inclusion in past earnings. I assume they are but wanted advice from experienced members. Both items are separated on my pay slip. Thanks in advance.

GeneNZ
Member
Posts: 113
Joined: Fri Feb 05, 2010 12:06 am

Re: Bonus and commission

Post by GeneNZ » Wed Apr 07, 2010 1:36 am

ozgrant wrote:There is no mention of bonus and commission in the new guidance doc as being allowed for inclusion in past earnings. I assume they are but wanted advice from experienced members. Both items are separated on my pay slip. Thanks in advance.
Bonuses are allowed. It says it in the new guidance notes:
123. Earnings may include, among other things:
salaries (includes full-time, part-time, and bonuses);
I personally would consider the term commission and dividends about the same thing. But because I'm not claiming commission or dividends, I am not 100% sure.

crowbar6
Member of Standing
Posts: 401
Joined: Tue Dec 11, 2007 5:33 pm
Location: London
India

Re: Bonus and commission

Post by crowbar6 » Wed Apr 07, 2010 2:42 pm

GeneNZ wrote:
ozgrant wrote:There is no mention of bonus and commission in the new guidance doc as being allowed for inclusion in past earnings. I assume they are but wanted advice from experienced members. Both items are separated on my pay slip. Thanks in advance.
Bonuses are allowed. It says it in the new guidance notes:
123. Earnings may include, among other things:
salaries (includes full-time, part-time, and bonuses);
I personally would consider the term commission and dividends about the same thing. But because I'm not claiming commission or dividends, I am not 100% sure.
If you pay income tax on Commissions (i.e., non-expense) then these can be included as well. An example would be the Sales Commission paid to Sales Manager depending on quota target achieved at end of the year. Here, the income tax is deducted from the earned Commission and paid as income to the employee. Ditto for bonuses as explained above.

You can't include any reimbursable expenses.
Regards,
crowbar6

ozgrant
Newbie
Posts: 33
Joined: Thu Mar 04, 2010 10:50 am

Re: Bonus and commission

Post by ozgrant » Wed Apr 07, 2010 2:49 pm

crowbar6 wrote:
GeneNZ wrote:
ozgrant wrote:There is no mention of bonus and commission in the new guidance doc as being allowed for inclusion in past earnings. I assume they are but wanted advice from experienced members. Both items are separated on my pay slip. Thanks in advance.
Bonuses are allowed. It says it in the new guidance notes:
123. Earnings may include, among other things:
salaries (includes full-time, part-time, and bonuses);
I personally would consider the term commission and dividends about the same thing. But because I'm not claiming commission or dividends, I am not 100% sure.
If you pay income tax on Commissions (i.e., non-expense) then these can be included as well. An example would be the Sales Commission paid to Sales Manager depending on quota target achieved at end of the year. Here, the income tax is deducted from the earned Commission and paid as income to the employee. Ditto for bonuses as explained above.

You can't include any reimbursable expenses.
Thankyou everyone. It is reasonable to assume then that any component on my payslip which contributes to the "gross for tax" amount, i.e. it is taxable, can be included in earnings? My employer has separated out annual leave from normal working days as amounts for example. Also allowances for being on call.

crowbar6
Member of Standing
Posts: 401
Joined: Tue Dec 11, 2007 5:33 pm
Location: London
India

Re: Bonus and commission

Post by crowbar6 » Wed Apr 07, 2010 3:00 pm

ozgrant wrote:
crowbar6 wrote:
GeneNZ wrote:
ozgrant wrote:There is no mention of bonus and commission in the new guidance doc as being allowed for inclusion in past earnings. I assume they are but wanted advice from experienced members. Both items are separated on my pay slip. Thanks in advance.
Bonuses are allowed. It says it in the new guidance notes:
123. Earnings may include, among other things:
salaries (includes full-time, part-time, and bonuses);
I personally would consider the term commission and dividends about the same thing. But because I'm not claiming commission or dividends, I am not 100% sure.
If you pay income tax on Commissions (i.e., non-expense) then these can be included as well. An example would be the Sales Commission paid to Sales Manager depending on quota target achieved at end of the year. Here, the income tax is deducted from the earned Commission and paid as income to the employee. Ditto for bonuses as explained above.

You can't include any reimbursable expenses.
Thankyou everyone. It is reasonable to assume then that any component on my payslip which contributes to the "gross for tax" amount, i.e. it is taxable, can be included in earnings? My employer has separated out annual leave from normal working days as amounts for example. Also allowances for being on call.
Yes, this is correct.
Regards,
crowbar6

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