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Tier-1 General Previous Earnings--advance on salary

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

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Picabia
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Tier-1 General Previous Earnings--advance on salary

Post by Picabia » Wed May 08, 2013 4:11 pm

Hello there,

I am applying to extend my Tier-1 general visa, and my base salary is slightly under the income threshold for previous earnings. My company has offered to pay me an advance of my next month's salary one month early in order to boost my income during the twelve month period above the £35,000 threshold. This way my earnings during the twelve month period are higher without them actually having to increase my salary (I will simply earn less the following month in order to compensate for the added income).

This seems all right to me, as there is nothing in the Tier-1 guidance that explicitly discounts an early payment of salary. It will still be paid to me as income, and will be taxed accordingly, just as any other income I receive. Does this seem acceptable, or will I potentialy run into trouble?

Additionally, would it be best if I asked them to detail it on my pay slip as 'salary advance' or something that explains specifically what it is, or would I be better off having it left a bit more vague as general supplementary income?

Any advice would be most appreciated. Thank you in advance!

Picabia
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Post by Picabia » Fri May 10, 2013 11:53 am

As a follow up, my company has confirmed the advance and offered to detail it on my pay slip next to my regular income as simply 'Advance'.

Does this seem acceptable? If I explain that I was paid a discretionary advance as assistance with my application, will this potentially create any problems with my applicatoin? Obviously the income will be taxed along with my regular monthly income, so I can't really see why the UKBA would discount it.

Does anyone have any advice? I am sorry to niggle over this, but obviously it is important to me to get this right, and I am still a little worried. I cannot locate anything in the guidance notes to indicate this would not be acceptable--the money will be paid in during the twelve month period I am supplying, and it will be taxed as income--yet I am obviously cautious of getting rejected for any reason when my entire life is in the UK. I would be really grateful for any more expert advice anyone might be able to offer.

Thank you once again.

bubin123
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Post by bubin123 » Fri May 10, 2013 12:32 pm

This can be potentially seen as Employer Loan and will be discounted from previous earning...
And, in true sense, this is indeed a loan which will eventually adjusted against your future salary by your employer...

Picabia
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Post by Picabia » Fri May 10, 2013 12:39 pm

Thank you for your response. This was my fear. However, I also thought that surely it doesn't strictly count as a loan if it is being supplied as income by my employer and taxed accordingly? Does the fact that I am paying tax on it not designate it as earnings?

bubin123
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Post by bubin123 » Fri May 10, 2013 2:20 pm

You are not paying any tax on this advance..... the tax deducted at source is just the one supposed to be on the top of your future salary...
In other words, when your future salary will be reduced to adjust this "advance", your tax outgoing for that month will also reduce accordingly.

bubin123
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Post by bubin123 » Fri May 10, 2013 2:23 pm

since you have a very good term with your employer, you can ask for a bonus to compensate your shortfall... bonuses can safely included into previous earnings for visa application...

Manka10
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Post by Manka10 » Fri May 10, 2013 2:31 pm

that still may not be counted as income that you have already earned, the CW can clearly make this out & if on the payslip it says the word "Advance", that will most probably result in a refusal as this effectively means 13 months pay has been considered as against 12
Manka

Picabia
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Post by Picabia » Fri May 10, 2013 2:58 pm

Thank you both for your replies. I have already received a bonus, and it isn't likely I would be able to get another.

I was hoping that the earnings would still constitute earnings within a twelve month period, given that it will all have been paid to me over 12 pay slips within a consecutive twelve month period. If one is self-employed, it is not uncommon to accept advances on pay before the job is actually complete, no? I suppose I don't entirely see why if it is paid to me as income and I pay tax on it as such, this would not actually count. Is there not a chance the UKBA would accept this when all the payslips would date within the consecutive 12 month period?

If the case worker does take issue with it and chooses to reject the salary advance as income, would this nullify my entire salary from my employer from counting toward my previous earnings, or just the amount of the advance?
I am asking to ascertain whether it's worth including the advance anyway. I would probably choose to risk it, but not if it could invalidate the entire rest of my earnings from my employer.

Thanks again.

bubin123
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Post by bubin123 » Fri May 10, 2013 4:11 pm

They will disregard the just the "advance" amount stated on payslip...

Picabia
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Post by Picabia » Fri May 10, 2013 4:15 pm

Thanks again for all your help. I know that all makes sense; it was just wishful thinking, I suppose! I will otherwise need to bring in foreign income, and while that will suffice, it will complicate my application compared to being able to cover it all from my UK employer.

Oh well. Thanks again for your advice. I really do appreciate it.

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