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'Gross Pay' or 'Taxable Pay'

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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nks
Member
Posts: 230
Joined: Thu Jul 01, 2010 3:08 pm

'Gross Pay' or 'Taxable Pay'

Post by nks » Mon Aug 22, 2011 9:21 am

Hi, this is a repeat post but with more appropriate subject. A fellow member has advised on earlier post that UKBA will only consider 'Total Taxable Pay' but calling UKBA helpline, I am advised that its 'Total Gross Pay' they 'll look at.

My 'Payments' section of payslip shows

Total Gross Pay : 4000 GBP
Total Taxable Pay : 3780 GBP

This is because some part of my gross pay funds benefits, which are non-taxable (like pension, insurance etc.)

I am not able to find any clear guidelines in this respect on UKBA portal but most posts on this forum suggests only taxable salary can be used for earnings.

Can I use 'Total Gross Pay' or it could only be 'Total Taxable Pay'?

Many thanks,
nks

RockON
Newbie
Posts: 40
Joined: Thu Jul 14, 2011 12:46 pm

Post by RockON » Mon Aug 22, 2011 9:47 am

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

nks
Member
Posts: 230
Joined: Thu Jul 01, 2010 3:08 pm

Post by nks » Mon Aug 22, 2011 8:54 pm

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.

RockON
Newbie
Posts: 40
Joined: Thu Jul 14, 2011 12:46 pm

Post by RockON » Wed Aug 24, 2011 11:41 am

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.

nks
Member
Posts: 230
Joined: Thu Jul 01, 2010 3:08 pm

Post by nks » Wed Aug 24, 2011 9:21 pm

RockON wrote: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.
In my case, employer adds his contribution, my contribution everything in the payslip and shows 'Gross Pay' (say 1000 pounds) as total. Over this, a consolidated deduction is made, thus reducing the 'Taxable Pay' (to say 800 pounds). What will UKBA consider in this case as my 'Gross Pay'?

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