severance pay

[travelerzee]

Hi,

My company paid me a severance pay at the end of my first year. this is in my contract and i pay tax on it.
however, I was given a separate pay slip for this, where the severance is not included in my regular pay, but in 'other (severance pay)'. it does not explicitly show the tax deduction, only the final amount which does not include tax.

how do I explain this and can i include this in my previous earnings calculation?

thanks.

[travelerzee]

anyone?

[[iD]]

Instead of going with payslips the best way would be to get a letter from your employer with the list of all your earnings including any bonuses you received during the period. Make sure the letter has all the deductions too
hope this help

[travelerzee]

thanks for the reply.

Thats what I thought. But doesnt the HO call the employer to confirm the salary? i'm worried that if they call and find out its a severance pay, then my application may be denied.

[[iD]]

thanks for the reply.

Thats what I thought. But doesnt the HO call the employer to confirm the salary? i'm worried that if they call and find out its a severance pay, then my application may be denied.

I think HO consider all taxable income so if you paid tax on your severance pay you should be ok to claim it, though please confirm with others

[travelerzee]

can anyone give me a link for where it says that any taxable income is included? The immigration consultant i'm using doesn't seem to believe when I say that I can include my severance pay in my previous income because i get taxed on it.

please help!

[Raji_karmlaw]

Hi,
So far as it is salaried income, and u have earned it, u can use it it calculate ur earnings.

[sdr]

I would be interested in this too.
The UKBA site mentions statutory redundancy payment is not included as income, but what about taxable severance pay that is part of a contract between employees and employers.

[geriatrix]

Whether statutory redundancy payment is taxable (or not) depends on your total earnings in that financial year.

Just because you had to pay tax on statutory redundancy payment doesn't mean that you can include it in your earnings (if it is not allowed as per policy guidance).



regards

[sdr]

Whether statutory redundancy payment is taxable (or not) depends on your total earnings in that financial year.

Just because you had to pay tax on statutory redundancy payment doesn't mean that you can include it in your earnings (if it is not allowed as per policy guidance).



regards

By statutory do you mean required by law under a statute? If you pay tax on it I think depends on the tax laws of what country you come from. So if it part of a contractual agreement is that still considered statutory?