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how to calculate financial requirement?

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strontiumdog74
Junior Member
Posts: 81
Joined: Sun May 29, 2016 1:05 pm
Location: Abu Dhabi, UAE

Re: how to calculate financial requirement?

Post by strontiumdog74 » Tue Jun 28, 2016 8:40 am

Non-salaried employment includes that paid at an hourly or other rate (and the number and/or pattern of hours required to be worked may vary) or paid an amount which varies according to the work undertaken. Salaried employment includes that paid at a minimum fixed rate (usually annual) which is usually subject to a contractual minimum number of hours to be worked.
Does your work contract say that you will be paid a salary of £xx,000 or does your contract say that you will receive £x.00 an hour with flexible number of hours per month?

I believe if your contract says the first then you are in salaried employment if your contract says the second then you are in non-salaried employment.

Someone cry out if I got this wrong please?
The only difference in Category A between salaried and non-salaried employment is how gross annual salary or employment income is calculated:
Where the person is in salaried employment – they must have been paid throughout the period of 6 months prior to the date of application at a level of gross annual salary which equals or exceeds the level relied upon in the application. Therefore the figure used towards the requirement will be the lowest level of annual salary received during the 6 month period.
Where the person is in non-salaried employment – the level of gross annual employment income relied upon in the application will be the annual equivalent of the person’s average gross monthly income from non-salaried employment in the 6 months prior to the date of application (where that employment was held throughout that period).
To calculate this annualised average for non-salaried employment in Category A the following calculation should be used:
(Total gross income from employment held throughout the 6 month period, divided by 6) multiplied by 12 = Income from non-salaried employment that can be counted towards the financial requirement.
This is taken from section 5 of the document at:
https://www.gov.uk/government/uploads/s ... rement.pdf

I believe you are probably in non-salaried employment. So if I understand the requirements correctly your salary for the last 6 months was 10,143, meaning your average monthly salary is 1,690.5. Multiplying this by 12 gives 20,286. So you meet the minimum requirements.

I think the P60 thing is a red herring, it adds support to your case that you are earning more than the required amount but it does not give your salary for the last 6 months which is what the requirements are saying. Therefore you need to submit all your pay slips (weekly) for the 6 months prior to the application.
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