Tier-1 Extension Season Ticket Loan And Holiday Sold

[salmanzz]

Hello Everyone,

I am applying for Tier 1 General Extension next week. I have all original Salary Slips . I am also preparing Salary Summary Letter from Company.

On my PaySlip it says

Salary **** let say (3000)
Season Ticket Loan 1500


Total 3500

Do i need to mention in summary letter or in visa form that i have Season Ticket Loan, because i am not sure i pay tax on it or not. Should i mention Gross Pay including Season Ticket Loan or without Season Ticket Loan

Similarly on other salary slip


Salary **** let say (3000)
Bonus **** 1500
Holiday Sold **** 50


Total 4550

Do i need to mention in summary letter or form that i have sold my holidays therefore i am getting extra money .


Thanks in advance

[salmanzz]

Can sumbody please reply

[malikjitin]

In first part you wrtoe 3000 + 1500 = 3500, which I dont understand.

Taking for granted it says 4500.

If £1500 was a loan by the company to yourself for some sort of holidays then I would imagine it wouldnt have been taxed as it is payable back to the empoyer. Therefore it wont be included in the taxable salary however you employer need to confirm it in their letter to you to avoid any confusions.

In second part it is very unusual situation that you are selling your holidays. Although there shouldnt be any issues with regards to the bonus as it is taxable anyway however statutory cannot be sold.

Every full time employee is entitles to 28 days statutory holidays in a year which although includes Bank Holidays etc but cannot be replaced with extra working hours. You have to be away from work, it is employers obligation.

So in second part I cannot be sure if you would have been taxed on £50.00.

However in your scenario an explanation letter should help in great deal by the employer.

[AccountantMatthew]

Regarding your season ticket could you please clarify what the arrangements are as how they are treated will be different. The different arrangements and how they are taxed can be found here

http://www.hmrc.gov.uk/paye/exb/a-z/p/p ... nsport.htm

With the holiday sale it would be considered as being extra salary, just like the bonus, and will be taxed accordingly. (There are, of course, other considerations as made above).

[salmanzz]

Thanks AccountantMatthew and malikjitin for comming back.

Yes you are right i mistakenly quoted 3500 in first part where as it should have been 4500 in total.

So what i have understood so far

1
Season Ticket Loan is not taxable and i need to mention in separate letter from company. Which Means i have to mention Gross Salary 3000 for that month excluding the amount of 1500 for season ticket loan.

2
And Holiday sold is taxable and i can include it in my salary statement.

By the way i only need to prove minimum 21k to get visa and even if i don't include that first part i still be able to prove 35k+.

So if i include only my 9 payslips which ads up almost 35k+ would that be ok?

Thanks

[salmanzz]

Regarding to this link
http://www.hmrc.gov.uk/paye/exb/a-z/p/p ... nsport.htm

My employer gave me the full money for season ticket without increasing salary and now they take out portion of every month

[Bijuk]

season ticket lon is deducted from salary on monthly basis so you can include that amount

[salmanzz]

But its not taxable. We can only include the amount which is taxable. If i am right?