niranhopper wrote:Thanks for the quick reply. Actually the calculation is not reflected in the sheet. It simply says, Gross Pay, Taxable Pay and Net Pay (net pay is the gross pay minus deductions like income tax, NI contribution).
My company has sent me on an onsite deputation and i qualify easily using the gross pay. What i do is declare my claims in the beginning of each month and sumit the bills for each quarter. My salary gets adjusted every month based on the declared amount and the bills submitted. So if i fail to submit for a quarter, i get taxed heavily on that last month in the quarter. If this happens, then my taxable pay is greater than the gross pay. This looks very odd and suspicious in my statement.
Anyone had a similar pay structure? Can i check with HMRC on what they would consider? I am not sure if i can take their word as i dont trust call center people.
Read below, or read the entire section for better idea
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124. 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 inherited; • money paid 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.
-Source: Tier 1 (General) Policy Guidance page 23 of 48
Looks like they do not consider expenses included in your gross salary. So it'll have to be actual taxable income on which you paid income tax.
Goodluck.