Urgent help...income shown in payslip

[raomvj]

Hi,

I am an employee of Indian company and delegated here in UK. I have been here since Nov 2009 on Tier1 general visa and getting living and housing allowances along with my salary.

My payslip looks like this:

Salary ££££
Car allow tx £££
Living all nt ££££
Husing al £££

Total Non-Taxable Payments £1500
Total Taxable Payments £1000

Total Gross Payments £2500

NetPay £2200

When I claim for previous earnings for my extension can I cliam total gross £2500?

Please help. It's an urgent as I am ready to send my application next week.

Thanks
JRao

[sreblog]

Normally earnings should be calculated before tax i.e. gross. Can anyone confirm please? This helps me too.

[ScopeD]

Allowances that form part of a remuneration package will be considered as earnings, as long as they are not being paid to reimburse you for money previously spent. As they are declared on your payslips, that should be ok.

[raomvj]

experts...please advice.

Thanks
JR

[Sushil-ACCA]

Hi,

I am an employee of Indian company and delegated here in UK. I have been here since Nov 2009 on Tier1 general visa and getting living and housing allowances along with my salary.

My payslip looks like this:

Salary ££££
Car allow tx £££
Living all nt ££££
Husing al £££

Total Non-Taxable Payments £1500
Total Taxable Payments £1000

Total Gross Payments £2500

NetPay £2200

When I claim for previous earnings for my extension can I cliam total gross £2500?

Please help. It's an urgent as I am ready to send my application next week.

Thanks
JRao

NO way

yr earnings for HO purpose is £1000.00

on which u paid taxes , get sorted out from yr employer and pay tax on gross £2500.00 ,than u will be other wise yr earning for HO is £1,000.00

[bubin123]

Thats not correct.
Allowances will be considered if mentioned in payslip.
I also had similar type of salary model (known as dispensation) and got the Tier1 based on the same.
Those allowances are reported into P11D and are taxable if actual spent cannot be proved through receipts or other means ( in case HMRC goes for audit)

[Sushil-ACCA]

Thats not correct.
Allowances will be considered if mentioned in payslip.
I also had similar type of salary model (known as dispensation) and got the Tier1 based on the same.
Those allowances are reported into P11D and are taxable if actual spent cannot be proved through receipts or other means ( in case HMRC goes for audit)

WILL he like that his file get audited and than ban for 10 years

[bubin123]

Audit will be done by HMRC not HO... that too for tax evasion...

[mr_danny]

Mate in simple words: -

1-your payslip must show full GROSS and NET income

2-what you say about taking allowances and being non-taxable (they are either not to be included on your gross income - or - should be taxed if they are)

so.....you're in trouble - HOWEVER - i believe you can write to the HMRC and pay tax for these so called allowance and legalise your payslips....

best advice check with an accountant rather then immigration specialists and dont take it lightly

good luck

[Sushil-ACCA]

Audit will be done by HMRC not HO... that too for tax evasion...

it is not about tax evasion my friend it is about obtaing visa by fraud

hope u will not mind my blunt talking

[bubin123]

these allowances are very much legal... widely used by employers who use secondment and have arrangement with HMRC.
It is tax free provided you spent the entire amount and have receipts of the same. Any unspent amount will be taxable as usual...
Not sure from where the fraud comes in picture...

[Sushil-ACCA]

these allowances are very much legal... widely used by employers who use secondment and have arrangement with HMRC.
It is tax free provided you spent the entire amount and have receipts of the same. Any unspent amount will be taxable as usual...
Not sure from where the fraud comes in picture...

I AM Done

[ams173314]

Just wanted put stop to this..... And really help raomvj out.

In Tier 1 (General) Policy Guidance Page No:- 18

102. 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-today 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 benefi ts; or
• prize money or competition winnings, other than where they are directly related to the applicant’s main profession or occupation. Allowances
103. We will only include allowances (such as those for accommodation or schooling for an applicant’s children) in the assessment of an applicant’s previous earnings if they are part of an applicant’s remuneration package
and are not paid to reimburse the applicant for money he/she has previously spent.
104. We will only accept allowances as earnings if they are declared in the applicant’s payslips and there is a contractual obligation on the employer’s part to make these payments.
----------------------------------------------------
yes, you can claim total gross £2500 as long as allowance are not Reimburse

[raomvj]

Thank you all for your help. I will check with my employer.

Thanks
JR

[geriatrix]

raomvj,

1. What's included in the "Total Non-Taxable Payments"? ... car allowance, living allowance, housing allowance? Anything else?
2. Is there anything under "Total Non-Taxable Payments" that is not mentioned on the payslip?
3. Are these allowances paid to you every month - with no requirement for you to submit any bills for claiming these allowances?

[raomvj]

Thanks sushdmehta.

1. What's included in the "Total Non-Taxable Payments"? ... car allowance, living allowance, housing allowance? Anything else?

Yes. Car, living and housing allowances

Sample Payslip:

Left hand side:
Salary : 820.00
Car Allow Tx : 187.50
Living All NT :1071.98
Housing All NT : 669.16

======================
Total Non-Taxable Payments: 1741.14
Total Taxable Payments: 1007.50
========================
Total Gross Payments : 2748.64

Middle:
Total deductions: 185.23

Right hand side:
Net Pay: 2563.41

2. Is there anything under "Total Non-Taxable Payments" that is not mentioned on the payslip?
No.

3. Are these allowances paid to you every month - with no requirement for you to submit any bills for claiming these allowances?
Yes. Every month without any bills. My all 12 months payslips look like above sample one except if I get any bonus.

[geriatrix]

Your monthly "gross salary" for the purpose of Tier 1 (General) assessment is 2748.64.
Your bonus will also be a part of this "gross salary" if you have been paid one during the "12 month" window you are claiming income points for. So don't forget to include that (if paid).

If your account(s) in UK or abroad are credited with the "net pay" shown on the payslip every month, there is no reason for you to worry ! Ignore responses above mentioning "fraud", "ban" etc. etc.

[raomvj]

Thank you very much Sushdmehta.
FYI. I get my salary in HSBC bank every month.

Thanks
JR

[raomvj]

Thank you all. I got my tier1 general visa extension today. Special thanks to Sushdmehtha for your support.

Thanks
JR

[ScopeD]

Thank you all. I got my tier1 general visa extension today. Special thanks to Sushdmehtha for your support.

Thanks
JR

Congrats mate. Your case was clearly covered by guidance policy and nothing seemed fraudulent to me (as suggested by other posts) so I was sure you'd get an extension.

[ioniyer]

My case is very similar to raomvj but with the wordings in the payslips as below

Right hand side
Payment Hrs/Days Rate Amount
HOME NET SALARY XXXX.07
PER DIEMS (NET) XXXX.41
COLA XX.25

Left Hand Side
Deduction Amount Bal/YTD
TAX PAID XXX.40 XXXX.20
EES NI CONT. XXX.99 XXX.93
Total Hours/Days Payments Deductions Net Pay Rng b/f Rng c/f Amount Payable
0.00 XXXX.73 XXX.39 XXXX.34 - - XXXX.34

Salary paid to HSBC Account.Should this be sufficient or does something not look ok here?