allowances vs expenses from points 101 and 102 in guidance

[kpr]

Hi,
The following two bullets are having accommodation in common in points 101 and 102 in the policy guidance.

101 accepts the accommodation to show in the earning and 102 does not.

from point 101 in policy guidance:
• allowances (such as accommodation, schooling or car allowances) that form part of an applicant’s remuneration package;

from point 102 in policy guidance
• expenses (such as accommodation, schooling or car allowances) that reimburse the applicant for money he/she has previously spent;

the company had provided the accommodation for me when I had come from the India to the UK. There is an addendum letter along with my offer stating I can use upto x amount for the relocation. I have used y amount out of x amount and reimbursed. Accommodation was booked by the company but I have paid and reimbursed the amount.

Can I show the accommodation amount 'y' in the previous earnings?



Following are the full details of these two points.

101. Earnings may include, among other things:

• salaries (includes full-time, part-time, and bonuses);
• earnings from self-employment;
• earnings from business activities;
• statutory and contractual maternity pay and • statutory and contractual adoption pay;

• allowances (such as accommodation, schooling or car allowances) that form part of an applicant’s remuneration package;

• dividends paid by a company in which the applicant is active in the day-to-day management, or where the applicant receives the dividend as part or all of his/her remuneration package;

• income from property rental, where this forms part of the applicant’s business; and
• payment in lieu of notice (a payment made instead of requiring an employee to work the normal period of notice when leaving a job).
Unearned sources of income that we

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-to-day 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;

policy guidance: http://ukba.homeoffice.gov.uk/siteconte ... idance.pdf

[ScopeD]

You need to read 103 and 104 as well. From what you said, I doubt that your accomodation allowances will qualify because your explanation sounds as if you are being reimbursed rather than them being part of a remuneration package. Have your accomodation allowances been declared on your payslips? If so, you can include the amounts under earnings. If not, you will not be able to include them as they will be seen as a reimbursement to you for money previously spent.

[kpr]

You need to read 103 and 104 as well. From what you said, I doubt that your accomodation allowances will qualify because your explanation sounds as if you are being reimbursed rather than them being part of a remuneration package. Have your accomodation allowances been declared on your payslips? If so, you can include the amounts under earnings. If not, you will not be able to include them as they will be seen as a reimbursement to you for money previously spent.

My relocation package(travel tickets, accommodation) are part of my offer. There is a separate page explicitly stating this amount in the offer.

This amount I had paid in two parts.

First part I had used my own credit card( as the company AMEX card application is in progress) and reimbursed, company paid to my account.

Second Part I had paid using company AMEX card( I have got AMEX card during this payment). Company has cleared AMEX card bill directly. No reimbursement in this case.

Both of these amount are not reflected in the payslips.

If I consider point 103 and 104 separately, I think this amount can be considered for previous earnings, because the amount part of my offer.

If I consider 103 and 104 together (i.e., should be part of remuneration and should be reflected in in payslips), I think the amount can not be added to the previous earnings.

It is bit tricky and ambiguous. So I am looking for input from somebody who had claimed the relocation package for previous earnings.

[ScopeD]

My relocation package(travel tickets, accommodation) are part of my offer. There is a separate page explicitly stating this amount in the offer.

Both of these amount are not reflected in the payslips.

I think you are missing the key point. The key piece here is your offer letter was worded to explain that you are entitled to a "reimbursement" for your relocation costs. But that is not coming to you through the ordinary payroll system and is not declared on your payslips. Point 103 has explained that in order for your allowances to be considered, they have to form part of your remuneration package (and not a reimbursement for what you have previously paid for). Point 104 further explains that such an allowance (that forms part of the "remuneration" package) should be declared on payslips (to show that there is a contractual obligation to pay such allowances to you). If I understood you right, you have been reimbursed, and the amounts are not on payslips. You cannot claim this as part of your remuneration.

[rakeysh.patel]

Hi,

from point 101 in policy guidance:
• allowances (such as accommodation, schooling or car allowances) that form part of an applicant’s remuneration package;

from point 102 in policy guidance
• expenses (such as accommodation, schooling or car allowances) that reimburse the applicant for money he/she has previously spent;

You need to seriously calm urself down rather than posting in wild. If you pay a close attention to ur findings,

Remuneration Package - I believe, with this you will have ur salary slip look like

Basic Salary - x
Acc allowance - Y
Car Allowance - Z

Total Gross - ABC
Total NET - XXX (After Tax and NI)

MEANING - You pay tax on all of them

VS

Reimburse - Reimbursement usually doesn't happen with Payroll (at least in all the companies I have had worked for). They will pay you what you claim. Such as, £200 on Accommodation and £100 on Food. You will get full £300 via BACS etc. In this case your salary slip would only show your basic salary as gross and minus the tax would be your NET Salary.

MEANING - You do not pay on the amount you get reimbursed. And hence this can not be classed as Money Earned and you can not claim point for this.

Hope this helps!!!

[ScopeD]

Basic Salary - x
Acc allowance - Y
Car Allowance - Z

Total Gross - ABC
Total NET - XXX (After Tax and NI)

MEANING - You pay tax on all of them
VS

Hear Hear...

[kpr]

Hello "raxs1983",
If you think my query is silly, Don't answer. If you are genius keep it with you. But ask yourself before writing messages like this.
"You need to seriously calm urself down rather than posting in wild."
Be a professional. Learn manners. Live like a gentle man.

[rakeysh.patel]

Righty ho -

First of All, I do not think I had acted anything but professional

Second of all, if someone asks you to calm down, learn not to take it offensively. It only means that Do not panic !!

Third of all, Posting in wild -

Feb 22 - POST 1
Feb 22 - POST 2
Feb 22 - POST 3
Feb 23 - POST 1
Feb 23 - POST 2
Feb 25 - POST 1
Feb 25 - POST 2

Furthermore, I have etiquettes, and again you need to calm yourself down before dishing out your frustration on someone else, who had nothing but tried to help you. Anyways, I choose not to enter the rage of words !!!

Cheerio and good luck with your Application

[kpr]

Sorry. I will stay away from you. You are repeating the same sentence. I don't know how to tell you.