Tier 1 (General) extension - many queries

marzooq · Post by **marzooq** » Mon Oct 31, 2011 3:02 pm

Hi,

I'm planning to apply for extension and I want to include overseas earnings.

I had some benefits which are all taxed, it means that they add them to the gross tax, does it make difference what the allowances are if they are added to tax?

what if I had two sources of income at the same time,
so I will be happy for any clarification.

Post by **Lucapooka** » Mon Oct 31, 2011 3:22 pm

What benefits? Described how they appear on your payslips?

marzooq · Post by **marzooq** » Mon Oct 31, 2011 3:30 pm

[quote="Lucapooka"]What benefits? Described how they appear on your payslips?[/quote]

one of the benefits is Employee stock purchase plan.
The Employee stock purchase plan is that the company allocates stocks for me and when I sell them they tax the profits as any earnings in my salary.
they they form a part of my gross total.

Post by **Lucapooka** » Mon Oct 31, 2011 3:45 pm

marzooq · Post by **marzooq** » Mon Oct 31, 2011 3:48 pm

[quote="Lucapooka"]No.[/quote]

can you please explain why no?

Post by **Lucapooka** » Mon Oct 31, 2011 3:58 pm

The guidance will explain that in 102, 103. Basically it's an optional (non-contractual) arrangement that is not part of your employment contract remuneration package and can't be considered. These are stock options not dividends.

marzooq · Post by **marzooq** » Mon Oct 31, 2011 4:02 pm

[quote="Lucapooka"]The guidance will explain that in 102, 103. Basically it's an optional (non-contractual) arrangement that is not part of your employment contract remuneration package and can't be considered. These are stock options not dividends.[/quote]

how can they differentiate ? is inside the total tax, and it is taxed line bonus exactly. it is overseas and not in the uk.,

marzooq · Post by **marzooq** » Mon Oct 31, 2011 4:03 pm

[quote="Lucapooka"]The guidance will explain that in 102, 103. Basically it's an optional (non-contractual) arrangement that is not part of your employment contract remuneration package and can't be considered. These are stock options not dividends.[/quote]

BTW - these stocks are not bought by me directly, they are given by the company to me. and they appear in the salary slip

ScopeD · Post by **ScopeD** » Mon Oct 31, 2011 9:34 pm

BTW - these stocks are not bought by me directly, they are given by the company to me. and they appear in the salary slip

Perhaps you would like to clarify on how the stock options are described on your payslip. Do you get them monthly? quarterly? Do they only get shown when you sell them? How do they record the values? Do they form part of your Gross income values???

marzooq · Post by **marzooq** » Mon Oct 31, 2011 9:56 pm

[quote="ScopeD"][quote]BTW - these stocks are not bought by me directly, they are given by the company to me. and they appear in the salary slip[/quote]

Perhaps you would like to clarify on how the stock options are described on your payslip. Do you get them monthly? quarterly? Do they only get shown when you sell them? How do they record the values? Do they form part of your Gross income values???[/quote]

they described as added tax to the gross total amount. they are not paid monthly, they are paid when I ask the company to sell them. they record a line in the salary slip as profits from stocks. the tax on the profit is the same as on my base salary and bonus, they fall under the same tax code. and yes THEY FORM PART OF MY GROSS INCOME VALUES. so if I ask the tax authority to issue a paper for me they will include the profits of these stocks. I don't think that the tax authority is able to breakdown the amount as they fall under the same code.
both salary slip and employer letter (or even tax paper) will include the tax of stock profits.
I know tax on of profits of stocks that you buy/sell individually will fall not in the same tax code of normal salary, but in the case of company stock purchase plan that I get by the employer it is considered as a part of my salary.

I also have to mention that this earning is overseas earnings so the laws there are different from UK laws.
Thanks for your help!

mulderpf · Post by **mulderpf** » Tue Nov 01, 2011 8:26 am

First off - something which seems to be causing the biggest confusion is that payment of tax automatically includes or excludes something from earnings. Simply because you pay tax on something, does not automatically include it in allowable earnings for immigration purposes (good example is savings interest - you pay tax on it, but you cannot claim that as earnings).

The next thing you are confusing is assuming that simply because something appears on your payslip, means that it is included in your remuneration package. Not completely true. If you don't sell these shares or you make a loss on them, this increases or decreases your total earnings. These profits are not part of your employment contract - they are outside of it, even though it is shown on your payslips (see this as a favour your company is doing for you by paying tax on your behalf). This is in the same category as earning dividends from investments or earning interest from investments. You cannot include this in your earnings.

Even though you may be taxed for these share options and even though they appear on your payslip, it is no different to investing a bit of money on the side in the LSE. You still have to pay tax on any profits you make from this (in your case your employer is just making it easier for you by paying the tax on your behalf), but you cannot include it as earnings (unless of course you were a trader).

marzooq · Post by **marzooq** » Tue Nov 01, 2011 9:34 am

[quote="mulderpf"]First off - something which seems to be causing the biggest confusion is that payment of tax automatically includes or excludes something from earnings. Simply because you pay tax on something, does not automatically include it in allowable earnings for immigration purposes (good example is savings interest - you pay tax on it, but you cannot claim that as earnings).

The next thing you are confusing is assuming that simply because something appears on your payslip, means that it is included in your remuneration package. Not completely true. If you don't sell these shares or you make a loss on them, this increases or decreases your total earnings. These profits are not part of your employment contract - they are outside of it, even though it is shown on your payslips (see this as a favour your company is doing for you by paying tax on your behalf). This is in the same category as earning dividends from investments or earning interest from investments. You cannot include this in your earnings.

Even though you may be taxed for these share options and even though they appear on your payslip, it is no different to investing a bit of money on the side in the LSE. You still have to pay tax on any profits you make from this (in your case your employer is just making it easier for you by paying the tax on your behalf), but you cannot include it as earnings (unless of course you were a trader).[/quote]

thank you indeed.
The question now how can i exclude the stock amount from the total amount that i claim if the employer letter states gross and net and the gross includes that.

tax authority papers will include it also.

mulderpf · Post by **mulderpf** » Tue Nov 01, 2011 4:43 pm

You simply deduct it from gross? That's surely not difficult.

Your payslip should look something like this:

Salary Â£10
Stock option profit Â£2
Some other benefit Â£3
Gross earnings Â£15

Tax and NI Â£7
Net earnings Â£8

So take gross and deduct stock option - in my example it's (Â£15 - Â£2 = Â£13). That's what you use for your earnings figure.

Net earnings should match to your bank account, so no need to do anything to that.

Post by **Lucapooka** » Tue Nov 01, 2011 4:51 pm

Can I ask that you use the post reply button rather than misuse the quote button. It's difficult to fathom your posts as they are buried within the previous comments.

marzooq · Post by **marzooq** » Tue Nov 01, 2011 5:47 pm

My salary slip looks like:

Base Salary Â£10
Stock option profit Â£2
Some other benefit Â£3
Gross earnings Â£15

my employer letters looks like

Months Gross Total Net
X Â£15 Â£7

who is supposed to take the 2 pound out of the total?
can my employer claim that the gross total is 13 pound why it is 15 ?
the employer letter stating gross and net is given, how can I deduct these profits by my self?

Post by **geriatrix** » Thu Nov 03, 2011 4:09 pm

marzooq wrote:Hi

what an employer letter should show?

Gross total (taxed amount) Net Pay Date

does it need to show the break down? (allowances...)

Post by **geriatrix** » Thu Nov 03, 2011 4:10 pm

marzooq wrote:is it possible to read the caseworker guidance at UKBA web site?

Post by **geriatrix** » Thu Nov 03, 2011 4:11 pm

1. Read the policy guidance which explains clearly what an employer letter must show.
2. There is no caseworker guidance for Tier 1 (General).

marzooq · Post by **marzooq** » Fri Nov 04, 2011 3:16 pm

what is the start date of the extension visa? biometric date or decision date?
I will be happy if you you can explain to me what is the biometric, I gave my biometric data in the initial application, do I need to give it again in the extension? and what is the biometric card? who need it?

the second and the main question is: I need that after applying for the visa, the decide and if they accept it, then they invite to give biometric data,.
when is the start date of the visa, the date of the decision or the date of biometric appointment?

clarification: this question is not related to the topic but I had to ask it here as the topic I opened for this question was closed.

Post by **geriatrix** » Fri Nov 04, 2011 5:44 pm

1. A leave cannot have a date (e.g. - biometric enrolment date) that precedes the date on which a decision is made as the date of issue.
2. A biometric residence permit (BRP) replaces the vignette in the passport. See Biometric residence permits - Tier 1 and follow the links given in there and you'll get all the information you need about BRP.

Reading this topic will also be useful.

marzooq · Post by **marzooq** » Wed Nov 09, 2011 1:24 pm

any way to apply now early and to request that the start date of the new visa will be after 1/1/2012 instead of the decision date?

Thanks!

Post by **geriatrix** » Wed Nov 09, 2011 2:42 pm

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Tier 1 (General) extension - many queries

Tier 1 (General) extension - many queries

what is the start date of the extension visa? biometric date

anyway to request that the start date of the visa will be