Hey all i came across the internal caseworker guidance (old one) and thought I'd share it with all of you so would know what the caseworkers expect
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HSMP INTERNAL CASEWORKER GUIDANCE V4.0
HSMP PAST EARNINGS 1
PAST EARNINGS
Contents
• General comments
• Past earning country bands
• How to consider earnings
• What if only one piece of evidence has been provided?
• The 12 month period
• Converting the currency
• Which country code?
• Which country code? – secondment earnings
• Minimum income levels and income bands
• Past earnings for applicants who have taken time out of employment
for study
• Income that can’t be considered
• Evidence for past earnings
• Why do we need two pieces of evidence?
• Does the evidence provided cover the correct period?
• Why are tax documents the most suitable evidence?
• What if the applicant hasn’t paid tax?
• Past earnings for those who are not self employed?
• Wage slips
• Letter from employer
• Income tax documents
• Letter from Accountants
• Dividends
• Past earnings evidence for those who are self employed
• Company accounts
• Tax return
• Dividends
• Letter from accountant
• Invoices
General comments
This guidance covers paragraphs 21 - 34 for under 28 applications and 16 -
29 for over 28 applications of Annex C of the respective guidance notes and
page 5 of the application form.
Past earning country bands
Table 1 - Under 28 years of age criteria
Young Persons Minimum
Income level (under 28 year
olds)
Code Countries requiring this income level.
£27,000 per annum = 25 points A Andorra, Aruba, Australia, Austria, Belgium,
Bermuda, Canada, Cayman Islands, Channel
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£40,000 per annum = 35 points
£60,000 per annum = 50 points
Islands, Denmark, Finland, France, French
Polynesia, Germany, Gibraltar, Guam, Hong
Kong, Iceland, Ireland, Italy, Japan, Kuwait,
Liechtenstein, Luxembourg, Monaco,
Netherlands, Norway, Qatar, San Marino,
Singapore, Sweden, Switzerland, UAE, United
Kingdom, United States of America, Vatican
£11,800 per annum = 25 points
£17,500 per annum = 35 points
£26,250 per annum = 50 points
B
American Samoa, Antigua and Barbuda,
Argentina, Bahamas, Bahrain, Barbados,
Botswana, Brunei, Chile, Costa Rica, Croatia,
Cyprus, Czech Republic, Estonia, Faeroe
Islands, Greece, Greenland, Grenada, Hungary,
Israel, Korea, Rep. of (South Korea), Latvia,
Lebanon, Libya, Macao, China, Malaysia, Malta,
Mauritius, Mexico, Netherlands Antilles, New
Caledonia, New Zealand, Northern Mariana
Islands, Oman, Palau, Panama, Poland,
Portugal, Puerto Rico, Saudi Arabia, Seychelles,
Slovak Republic, Slovenia, Spain, St. Kitts and
Nevis, St. Lucia, Taiwan (Territory of),Trinidad
and Tobago, Uruguay, Venezuela, Virgin
Islands,
£8,450 per annum = 25 points
£12,500 per annum = 35 points
£18,750 per annum = 50 points
C
Albania, Algeria, Belarus, Belize, Bolivia, Bosnia
and Herzegovina, Brazil, Bulgaria, Cape Verde,
China (excluding Hong Kong), Colombia,
Dominica, Dominican Republic, Ecuador, Egypt,
El Salvador, Fiji, Gabon, Guatemala, Honduras,
Iran, Jamaica, Jordan, Kazakhstan, Lithuania,
Macedonia, Maldives, Marshall Islands,
Micronesia, Morocco, Namibia, Nauru,
Paraguay, Peru, Philippines, Romania, Russian
Federation, Samoa, South Africa, St. Vincent
and the Grenadines, Suriname, Swaziland,
Syrian Arab Republic, Thailand, Tonga, Tunisia,
Turkey, Turkmenistan, Vanuatu, West Bank and
Gaza, Yugoslavia
£5,000 per annum = 25 points
£7,500 per annum = 35 points
£11,250 per annum = 50 points
D
Angola, Armenia, Azerbaijan, Bangladesh,
Benin,
Bhutan, Cameroon, Comoros, Congo, Republic
of the, Cote d’Ivoire, Cuba, Djibouti, Equatorial
Guinea, Gambia, Georgia, Guinea, Guyana,
Haiti, India, Indonesia, Iraq, Kenya, Kiribati,
Lesotho, Mauritania, Moldova, Mongolia,
Myanmar, Nicaragua, Pakistan, Papua New
Guinea, Senegal, Solomon Islands, Sri Lanka,
Sudan, Ukraine, Uzbekistan, Vietnam, Yemen,
Zambia, Zimbabwe,
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£2,350 per annum = 25 points
£3,500 per annum = 35 points
£5,250 per annum = 50 points
E
Afghanistan, Burkina Faso, Burundi, Cambodia,
Central African Republic, Congo, Democratic
Republic of the, Chad, Eritrea, Ethiopia, Ghana,
Guinea-Bissau,Korea (N), Kyrgyz Republic, Lao
PDR, Liberia, Madagascar, Malawi, Mali,
Mayotte, Mozambique, Nepal, Niger, Nigeria,
Rwanda, Sao Tome and Principe, Sierra Leone,
Somalia, Tajikistan, Tanzania,Togo, Uganda,
Table 2 - 28 years of age and over criteria
Minimum Income Level (aged
28 year and over)
Code Countries requiring this income level.
£40,000 per annum = 25 Points
£100,000 per annum = 35 Points
£250,000 per annum = 50 Points
A
Andorra, Aruba, Australia, Austria, Belgium,
Bermuda, Canada, Cayman Islands, Channel
Islands, Denmark, Finland, France, French
Polynesia, Germany, Gibraltar, Guam, Hong
Kong, Iceland, Ireland, Italy, Japan, Kuwait,
Liechtenstein, Luxembourg, Monaco,
Netherlands, Norway, Qatar, San Marino,
Singapore, Sweden, Switzerland, UAE, United
Kingdom, United States of America, Vatican
£17,500 per annum = 25 Points
£43,750 per annum = 35 Points
£109,375 per annum = 50 Points
B
American Samoa, Antigua and Barbuda,
Argentina, Bahamas, Bahrain, Barbados,
Botswana, Brunei, Chile, Costa Rica, Croatia,
Cyprus, Czech Republic, Estonia, Faeroe
Islands, Greece, Greenland, Grenada,
Hungary, Israel, Korea, Rep. of (South Korea),
Latvia, Lebanon, Libya, Macao, China,
Malaysia, Malta, Mauritius, Mexico,
Netherlands Antilles, New Caledonia, New
Zealand, Northern Mariana Islands, Oman,
Palau, Panama, Poland, Portugal, Puerto Rico,
Saudi Arabia, Seychelles, Slovak Republic,
Slovenia, Spain, St. Kitts and Nevis, St. Lucia,
Taiwan (Territory of),Trinidad and Tobago,
Uruguay, Venezuela, Virgin Islands,
£12,500 per annum = 25 Points
£31,250 per annum = 35 Points
£78,125 per annum = 50 Points
C
Albania, Algeria, Belarus, Belize, Bolivia,
Bosnia and Herzegovina, Brazil, Bulgaria,
Cape Verde, China (excluding Hong Kong),
Colombia, Dominica, Dominican Republic,
Ecuador, Egypt, El Salvador, Fiji, Gabon,
Guatemala, Honduras, Iran, Jamaica, Jordan,
Kazakhstan, Lithuania, Macedonia, Maldives,
Marshall Islands, Micronesia, Morocco,
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Namibia, Nauru, Paraguay, Peru, Philippines,
Romania, Russian Federation, Samoa, South
Africa, St. Vincent and the Grenadines,
Suriname, Swaziland, Syrian Arab Republic,
Thailand, Tonga, Tunisia, Turkey,
Turkmenistan, Vanuatu, West Bank and Gaza,
Yugoslavia
£7,500 per annum = 25 Points
£18,750 per annum = 35 Points
£46,875 per annum = 50 Points
D
Angola, Armenia, Azerbaijan, Bangladesh,
Benin,
Bhutan, Cameroon, Comoros, Congo,
Republic of the, Cote d’Ivoire, Cuba, Djibouti,
Equatorial Guinea, Gambia, Georgia, Guinea,
Guyana, Haiti, India, Indonesia, Iraq, Kenya,
Kiribati, Lesotho, Mauritania, Moldova,
Mongolia, Myanmar, Nicaragua, Pakistan,
Papua New Guinea, Senegal, Solomon
Islands, Sri Lanka, Sudan, Ukraine,
Uzbekistan, Vietnam, Yemen, Zambia,
Zimbabwe,
£3,500 per annum = 25 Points
£8,750 per annum = 35 Points
£21,875 per annum = 50 Points
E
Afghanistan, Burkina Faso, Burundi,
Cambodia, Central African Republic, Congo,
Democratic Republic of the, Chad, Eritrea,
Ethiopia, Ghana, Guinea-Bissau, Korea (N),
Kyrgyz Republic, Lao PDR, Liberia,
Madagascar, Malawi, Mali, Mayotte,
Mozambique, Nepal, Niger, Nigeria, Rwanda,
Sao Tome and Principe, Sierra Leone,
Somalia, Tajikistan, Tanzania, Togo, Uganda
The categories in the Country Earning Band tables reflect that income levels
across the world vary and give a relative comparison of earnings in different
countries. They are broadly equivalent to the top earnings of all full time
workers in their respective countries and age group.
The minimum past earnings for the under 28 category have been reduced to
reflect the lower earnings that young highly skilled individuals earn, on
average, in comparison with their older counterparts.
The caseworker must make sure they are using the correct age category
(under 28 or over 28) to assess the income level as, if the wrong one is used,
it will affect the overall consideration.
How to consider the earnings
In order to award the appropriate points in this section the caseworker
has to be satisfied that sufficient evidence has been provided to clearly
demonstrate the amount the applicant has earned during the past 12
months.
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The assessment should be made on the applicant’s gross income for the
period. If the applicant is self employed, and does not pay themselves a
salary, then the earnings should be calculated on the net profit of the
company and not the company’s takings (as all expenses have to be
deducted first to establish the actual money available for earnings)
Before points are awarded the caseworker must be satisfied that the
evidence provided is acceptable by following these guidelines.
What if only one piece of evidence has been provided?
If the applicant has only provided one piece of evidence then the caseworker
must decide whether the evidence supplied is sufficient to accept. For
example, if the piece of evidence supplied is an official earnings document,
such as a tax return or a P60, and the caseworker is satisfied that piece of
evidence demonstrates the earnings, it can be accepted (the risk level on this
must be judged on an individual case basis)
The 12 month period
The period assessed for past earnings is the 12 months prior to the date the
application was received by Work Permits (UK) and all the evidence
considered must be relevant to that period. If the applicant has been studying
during this period please see paragraph below on time out of employment for
study for more details.
Converting the currency
The first step is to work out how much the applicant has earned over the 12
month period (from the evidence provided). If it is in a foreign currency the
final calculated figure must be converted into British Pounds (£) to establish
the amount of points to be awarded.
Useful currency conversion websites to use are:
www.oanda.com
http://www.geres.ge/currency/currcalc.html?lang=en
www.xe.com
When making the conversion the exchange rate of the date of the last payslip
should be used.
However, if the applicant has been a student and is supplying evidence from
before they started studying then the conversion should be based on the date
of the last earnings. The conversion can be accurate to whatever date you
require as the conversion websites allow you to select the exact date for the
conversion.
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If an applicant is requesting that we use a date in the past for making the
conversion because of economic problems in that particular country then you
should discuss what evidence has been provided with a manager.
Once the caseworker has an amount in British Pounds they should then:
(i) Decide which country code the applicant has been earning under
(ii) Decide which earning band the amount comes under
Which country code?
The caseworker should use the appropriate table depending whether the
application is from a person that is either under 28 years of age (table 1) or 28
years and over (table 2). See paragraph ‘Past earnings country bands’ above
for both tables.
The earnings are considered against the country where the applicant has
been working/residing during the 12 months prior to the application being
made. It is not based on the applicant’s nationality.
If the applicant has being living/working in more than one country over the 12
month period you should use the country band that the applicant has spent
the majority of the period in and pro rata the income over 12 months (see next
paragraph on how to calculate this). So, if someone has spent 8 months in
the UK (country code A) and 4 months in New Zealand (country code B) you
would assess under country code A, as that is where the applicant has spent
the majority of the 12 month period. This is the only circumstances where we
can pro-rata an applicant’s earnings. If an applicant has worked for less than
12 months in the 12 month period before the application then their earnings
cannot be calculated on a pro rata basis. For example where an applicant
has only worked for three months out of the whole 12 month period before the
application a caseworker cannot pro rata that figure to use as potential
earnings.
To pro rata the income a caseworker would use the following calculation. The
total earned income in the country where the larger amount of time has been
spent would be divided by the number of months the applicant worked there.
This would give a monthly earning, and then that figure would be multiplied by
12 to find out what they would have earned over the full 12 month period.
If the situation should arise where the applicant has spent exactly 6 months in
each country then the earnings should still be calculated on a pro rata basis
for both and the income that benefits the applicant most should be the figure
that is considered.
Which country code? - Secondment earnings
If the applicant has been seconded overseas during the past 12 months but
their salary has continued to be paid in another country, the country where the
applicant has worked is the country code to use.
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Minimum income levels and income bands
For each country code there are 3 income bands (please see tables in
paragraph ‘Past earnings country bands’ above) that are awarded 25 points
for the lowest band, 35 points for the middle band and 50 points for the top
earning band. Once the amount earned has been calculated the points in the
appropriate band should be awarded if the evidence is satisfactory. If the
income falls below the minimum level then no points should be awarded.
Past earnings for applicants who have taken time out of employment for
study
If the applicant has been unable to earn an income for the last 12 months, due
to undertaking full time study at university, we will consider their earnings for
the 12 month period immediately prior to them becoming a full time student.
In order for an applicant to be considered for this they should supply
• evidence of earnings for the 12 months immediately prior to the beginning
of the study
• evidence of the period of study
• evidence of the attendance requirements (hours per week)
Income that can’t be considered
Not all income can be calculated as part of the applicant’s past earnings.
Unearned income, such as those below, will not be considered, as it is not
earnings from employment.
• Dividends from investments (unless the applicant is working for the
company on a full time basis, or the payment is directly related to their
employment)
• Property rental income
• Interest on savings
• Funds received through an inheritance
Evidence for past earnings
For this section the applicant will need to submit two forms of evidence from
the list below to demonstrate what their earnings have been during the 12
months prior to the application being made. The evidence supplied should
clearly confirm the applicant’s gross earnings over the period.
Why do we need two pieces of evidence?
Two forms of evidence are requested as it is often found that a piece of
evidence for earnings on its own does not always confirm the amount claimed
on the application form. An example of this is a letter from the employer that
doesn’t state the same figure as on the application form, or a tax return, which
only covers part of the 12 month period. Two pieces of evidence provided
could confirm the actual amount that the applicant has been paid over the 12
month period.
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However, if the applicant provides only one piece of evidence that is an official
document, such as a tax return or a P60, this can be considered on its own as
it is a document that has been produced by an official body such as a tax
office.
Does the evidence provided cover the correct period?
When looking at the evidence the first thing that should be checked is that the
evidence provided covers the correct 12 month period. This should be the 12
months prior to the application being received (this should be taken on the
date received stamped on the front of the application form). If the applicant
has submitted any evidence that doesn’t cover the correct period it cannot be
used to assess the application.
Why are tax documents the most suitable evidence?
We ask for tax documents as evidence as they are official documents that
clearly state the amount of earnings an applicant has earned in the last tax
period from wages/salary.
The tax return clearly itemises earnings that have been earned by
salary/wages and that that has been earned from property rental/investments.
We also use this kind of evidence as a source because it officially confirms
the applicant’s earnings when other pieces of evidence often contradict each
other. This can save time on the consideration of applications as there is less
necessity for the caseworker to request further information if the pieces of
evidence do not clearly show the amount earned.
What if the applicant hasn’t paid tax?
There are some countries that do not have a tax system, such as Saudi
Arabia. If an applicant has worked in a country where tax is not paid then you
should consider the evidence supplied. The evidence should still be of the
kind listed in this guidance, but more than the two pieces of evidence may be
required to clearly demonstrate the amount earned.
For instance, an applicant may have supplied a letter from the employer and
wage slips, but the figures are not consistent. This would require further
evidence, such as bank statements, to illustrate what amount has been paid
to the applicant.
If the applicant has been exempt from paying tax in a country they have been
working in, and therefore have no tax documentation as evidence, then they
will need to provide two other forms of evidence of their earnings
Wage slips
If the applicant wishes to use wage slips as evidence. The applicant should
have supplied wage slips to cover the 12 month period. The caseworker
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should check that they cover the 12 months prior to the application being
made.
Things to check –
• Are the payslips for the applicant?
• Do they cover the correct period?
• Are they in an acceptable format? (i.e. are they on formal wage slips/been
endorsed by the employer)
If the applicant cannot provide all the payslips, bank statements could be used
to back the wage slips up as confirmation that the salary has been paid over
the period in question. If bank statements are used as evidence the
statements must clearly show the payment has come from the employer.
The wage slips should either be on formal payslips or on company letter
headed paper. If they are on plain A4 paper then they should be clearly
stamped and signed by the employer. Any wage slips that are on plain paper,
that have not been endorsed by the employer, are not acceptable.
The caseworker should either, add up the gross earnings from each payslip to
establish the total income, or use the ‘Gross earnings to date’ figure. The
caseworker should use that which is most accurate for the individual case.
For instance, if the ‘Year to date’ figure is on the first wage slip of the period it
is not relevant to the period in question.
Letter from employer
The letter should be on company letter headed paper clearly stating what the
applicant earned during the 12 month period. An annual salary figure is
acceptable if it covers the 12 month period. However, it will not be acceptable
if the applicant, for example, has only been in the post for a few months and
so will have only earned a small proportion of that salary.
Income tax documents
Income Tax Return - This is one of the most useful piece of evidence for past
earnings as it is an independent official document that confirms what earnings
have been declared for tax. On the tax return you should be looking for the
amount under ‘salary/earned income/wages’ (it will vary from country to
country).
Things to check –
Is the tax return for the applicant?
Does it cover the relevant period?
The applicant should send in the most recent tax return. The caseworker
should be aware that taxation periods vary across the world and therefore the
return may not cover the whole 12 month period. In cases like these the
wage slips should used to confirm earnings.
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A tax document that has been filled in by the applicant (such as the selfassessment
tax form) is not acceptable as it has not been independently
confirmed by the tax office.
Letter from Accountants
This is usually more relevant for self employed. However, occasionally
individuals have an accountant to manage their money. The letter should be
on the accountant’s company paper and state what the applicant’s earned
income has been for the 12 month period. This must include a breakdown of
earning so that the caseworker can clearly see what can be included in the
earnings. For example, it may include earnings from investment, which
cannot be considered.
Dividends
All employed workers in the UK who receive income from their employer in
dividends and under the P.A.Y.E. scheme must receive a dividend voucher
from their employer each time a dividend is paid. This voucher is a document
that gives the amount of dividend paid plus the amount of corporate tax paid
on the dividend by the company. This is an acceptable piece of evidence
providing that the original voucher is submitted and it corresponds with the
second piece of evidence to show it has been paid (i.e bank statements/tax
documents).
Past earnings evidence for those who are self employed
Past earnings for self-employed applicants may have been paid in a number
of ways.
• They could pay themselves a salary out of the company funds or
• They could take the profits as their earnings.
If the applicant is not paid a set salary the caseworker must establish how
much of the net profit of the company will be paid to the applicant. The
assessment must work on the net profit, as this is the figure that is available
as potential earnings (after all the company expenditure has been deducted –
which is not potential earnings)
The caseworker must also establish whether the applicant is the sole owner
or is a partner. If the applicant is sole owner the assessment for the past
earnings can be on the whole amount of the net profit. However, if the
applicant is one of a group of partners the applicant should provide evidence
of what share of the profits he/she is entitled to as earnings.
Company accounts
The most appropriate form of evidence to indicate whether the applicant is
sole owner or not and the company’s net profit are the company accounts.
The applicant should provide a copy of the company’s most up to date (to
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cover the 12 month period) accounts. This should indicate the net profit and
whether the applicant is the sole owner or a joint partner.
Tax Return
This must be the applicant’s individual tax return as the consideration is to
assess the amount that individual has earned and not the company’s
earnings/takings before the expenditure has been deducted. (If the applicant
has not paid tax see paragraph ‘what if the applicant hasn’t paid tax?’). For
the document to be acceptable it should have been seen by the tax authority
to confirm that the information on the form is valid.
Self-employed people, working in the UK, have to submit a tax return 6
months before the end of the tax year. Tax payments are made in 3
instalments, one advanced payment in January, the second in July and the
third in the following January.
How useful this information is will depend on what proportion of the 12 month
period the tax return covers. If it only covers a very small part of the 12
months then the applicant would have to provide additional pieces of evidence
(such as up to date accounts or an accountant’s statement to demonstrate
earnings).
Dividends
All self-employed applicants in the UK that pay themselves in dividends must
fill in a tax return and declare the dividends. If they have paid themselves
dividends and have yet to complete their tax return they should have the
dividend voucher that declares how much they have paid themselves and the
corporate tax they will be paying.
Therefore the applicant should be providing either a tax return or dividend
vouchers as evidence.
Letter from Accountants
The letter should be on the accountants company letter headed paper and
state what the applicant’s earned income has been for the 12 month period. If
the applicant is not paid a salary then the letter should state what the
applicant’s net profit was. For self-employed applications the accountant’s
letter should indicate if the applicant is the sole owner or one of a number of
partners.
Invoices
Invoices have a limited contribution to the assessment of past earnings as
they do not show what the net profits of the applicant’s company are, so are
not really appropriate. They only indicate the company’s request for payment
and that the company is trading.
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When a company is in its first year of trading it will not have accounts, so
invoices may be the only form of evidence that can be provided. If an
applicant states that the invoices are the actual earnings, and company
accounts have not been produced, then the applicant should also supply 12
months bank personal statements. These should demonstrate that the
amounts on the invoices have been paid to the applicant (company bank
statements are not acceptable as they do not demonstrate the applicant’s
individual earnings).
