Non taxable Deputation allowance

[Rosea1]

Hi,

I am going to apply for Tier 1(General) extension and need your expert guidance.
I work for an Indian company and on UK Salary basis.
I have a component called 'Deputation allowance' in my salary slip which is a non taxable component.

Will this be considered as part of my previous earnings ?

I read somewhere that only taxable income is considered.

Thanks in advance !

[Manka10]

Read 104 and 105 in Tier 1 guidance notes

Allowances
104. 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.
105. 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.

[bubin123]

Does this allowance get reflected on your P11D?

[Rosea1]

Thanks for your replies.

Manka looking at guidelines it appears I will be able to include deputation allowance in my earnings.

104 : Its part of my remuneration package and not an reimbursement for which I spent earlier.
105: This allowance is part of my payslip and as per my deputation letter my company has to pay me this amount.

*** In my deputation letter there is this point. If employee applies for HSMP / ILR he/she need to notify company and they will stop this component and include same amount in basic pay instead.
I am not on HSMP / ILR either but still in our yearly audits I have notified them about change in circumstances and yet I am getting this component as part of my salary which is non-taxable.

When I changed my visa from tier 2 (ICT) to tier 1 (General) in 2010 UKBA has considered this allowance as part of my remuneration package. Does change of visa will make any difference?

Bubin I do not get any P11D from my company.

Thanks again for your expert comments.