Don’t get your self confused mate. As per my understanding, employer’s contribution to Pension will not be considered in gross pay.
But your contribution will be considered. E.g. If your gross pay is 1000 pounds and then you pay 100 pounds into your pension, that makes the taxable pay 900 pounds. Now in addition to your contribution, your employer pays 100 pound into your pension fund, which makes the total contribution of 200 pounds into your pension fund. (This additional 100 pounds contribution from your employer will not be considered as your gross pay)
In this case, you need to put in 1000 pound figure in your application form (for one-month period)
However, there is another type of pension, in which your pension is deducted from your basic pay, e.g. If you have signed for this pension, and your contractual pay is 1000 pounds per month and you have signed for 100 pound per month pension, then your basic pay will be 900 pounds (In other case you contractual pay becomes 900 pounds), this will also be your gross pay and possibly the same amount as taxable pay. (Here the net pay might be more compared to the previous type of pension, as you save on national insurance) Now in addition to your contribution, your employer pays 100 pound into your pension fund, which makes the total contribution of 200+ pounds into your pension fund
In this case, you need to put in 900 pound figure in your application form (for one-month period): as this is your gross pay
Considering your case, you have gross pay and taxable pay situation, then you seem to have the first type of pension
Hope this helps. Best of Luck
nks wrote:RockON wrote:Gross Pay, reference to guidance notes.
I got my extension approved last month. In my case because of pension, the taxable pay was less than the gross pay.
I entered the gross pay considering the guidance notes. For peace of mind, you can add employer letter, confirming the claimed earnings (gross pay and net pay for each month)
Best of Luck
Thank you for the sole reply
This is relief but still...there are so many posts on this forum suggesting that Employer's contribution to Pension is not taken in gross. I've written to UKBA and waiting for their reply but people, plz keep your opinions and experiences coming in.