Pension deduction from Gross Salary

[baskey]

Hi all,

From my gross salary 2% is deducted for Pension ( employee's contribution), which is tax exempt. My P60 shows ONLY "Total taxable income", which is my gross salary minus 2%. I only score enough points, if I include 2% of pension deduction. In this situation, Is it allowed to score points based on "Total Gross Income" or it should be only be a "Total taxable income".

I am very concerned about this as I see here many people are getting rejected for silly reasons as the case workers are not paying proper attention.

Pls clarify.

Thanks,

Baskey

[rajeevanand]

Though I'm not an expert, I believe it should be 'Total Gross Income'

The reason is depending on your tax code, you are allowed a certain tax free income which is excluded in the taxable income. But you have earned that amount as well as salary, isn't it.

So, worry about only gross income. And in your covering talk only about your gross income.

[pantaiema]

Theya are interested in Gross income before Tax, pension and NI contribution. Normally your gross salary is declared in your Pay slip. Your net income is shown on your Bank A/C

Pantaiema

Hi all,

From my gross salary 2% is deducted for Pension ( employee's contribution), which is tax exempt. My P60 shows ONLY "Total taxable income", which is my gross salary minus 2%. I only score enough points, if I include 2% of pension deduction. In this situation, Is it allowed to score points based on "Total Gross Income" or it should be only be a "Total taxable income".

I am very concerned about this as I see here many people are getting rejected for silly reasons as the case workers are not paying proper attention.

Pls clarify.

Thanks,

Baskey

[baskey]

Theya are interested in Gross income before Tax, pension and NI contribution. Normally your gross salary is declared in your Pay slip. Your net income is shown on your Bank A/C

Pantaima

Hi,

Thanks for the reply but I am not clear.

Say, my gross income income is 35K and 2% of 35K is employee's contribution for pension fund and rest 34.3K is taxable income and this is what reflected as " Gross taxable income" in P60.

So in this situation, am I able to claim points for 35K or not ?

If No, I can't believe, why employee's contribution into pension fund not taken into consideration. At the end of the day, It is earned by the employee.

From previous postings, I was under the impression that employee's contribution into pension fund can be used.

Whether any one has similar situation. Pls share your opinions.


Thanks,

regards,

[Mrs Khan]

These things are categorized in your wage slips.
You will be judged for Income criteria on your Gross Income; it should be on your Pay slips how much you are contributing towards pension.
So your wage slips and if there is any other supporting docs from your employer should get you through this.

[pantaiema]

Yes you are, as long as the total amount of that is declared in your all pay slips. e.g. add all amount of yout 12 months pay slip. Your 12 months pay slip must show the total amounts of 35K


Pantaiema

So in this situation, am I able to claim points for 35K or not ?

,

[makon]

I have the same concern and I wrote twice to home office and I was told that it gross despite the fact that 3% is deducted as pensions and £100 as additional voluntary contributions.

so take gross

[baskey]

I have the same concern and I wrote twice to home office and I was told that it gross despite the fact that 3% is deducted as pensions and £100 as additional voluntary contributions.

so take gross

Hi,

HSMP guidance notes says " total annual salary before tax " that I interpret as Total taxable income i.e. gross salary minus pension contribution in my case. Also in my P60 form " Total taxable income was mentioned and not gross salary. Gross salary is mentioned only in the wage slip.

In this case, HO can very well say P60 and wage slip is not collaborating with each others!!. We never know, a fussy case worker can misinterpret the figures. I am afraid.

Also could you mind sharing the email from HO, it may give me some confidence.

Many thanks for all the responses.

Regards,


Baskey

[pantaiema]

Explained in the cover letter that you contributr the company pension scheme. The caseworkers have been living in the UK for ages. Like U and me they defenitely know that Pension contribution is not taxable.

Pantaiema

I have the same concern and I wrote twice to home office and I was told that it gross despite the fact that 3% is deducted as pensions and £100 as additional voluntary contributions.

so take gross

Hi,

HSMP guidance notes says " total annual salary before tax " that I interpret as Total taxable income i.e. gross salary minus pension contribution in my case. Also in my P60 form " Total taxable income was mentioned and not gross salary. Gross salary is mentioned only in the wage slip.

In this case, HO can very well say P60 and wage slip is not collaborating with each others!!. We never know, a fussy case worker can misinterpret the figures. I am afraid.

Also could you mind sharing the email from HO, it may give me some confidence.

Many thanks for all the responses.

Regards,


Baskey

[stedman]

The case workers aren't stupid - they're all PAYE employees themselves anyway! They'll know gross income is called gross for a reason i.e. what you're paid before any deductions - that's what they're interested in.

[makon]

Below is the email I sent and the reply I got from HO:


Subject: RE: Gross Earnings and Taxable Income
Date: Thu, 25 Jan 2007 13:41:50 -0000
From: "WPLTR4" <WPLTR4.workpermits@ind.homeoffice.gsi.gov.uk>
To: xxxxxxxxxxxxxxxxx



Gross Pay

Regards

Robert Myers
Leave to Remain Casework Team 4
IND North East, Yorkshire & Humber Region
PO Box 3468
Sheffield
S3 8WA
………………………………………………………………………………………………………………………..
From: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Sent: 24 January 2007 14:14
To: Workpermits, HSMP
Subject: Gross Earnings and Taxable Income

Dear Sir/Madam,
I will be applying for the extension of my HSMP Visa very soon and I need some clarification on the earnings I should use to claim points in the earnings category.
I am worried by the answer to Question 25 of the HSMP Frequently Asked Questions (FAQs) on www.workingintheuk.gov.uk <http://www.workingintheuk.gov.uk that seem to imply that points awarded in the earnings category is based on Taxable Income and not on Gross Income

Presently, my monthly gross earnings is £xxxx.xx My monthly pension
contribution is £xx.xx and I have authorised my employer to deduct £xx.xx as additional savings in the form of Additional Voluntary Contributions (AVC).
A total of £xx.xx is therefore deducted from my salary and because of this deduction, my Taxable Income is £xx.xx even though my monthly gross salary is £xx.xx. An appropriate advise would be appreciated

My question therefore is: When claiming points in the earnings category, which of the above figures should I use to claim points in the earnings category, is it the Gross Pay or Taxable Income?
Regards,
xxxxxxxxxxxxxx

[pantaiema]

That is why pay slip an the letter from employees (as an addition) to prove that the person earn £xxxxxx a years

Pantaiema

The case workers aren't stupid - they're all PAYE employees themselves anyway! They'll know gross income is called gross for a reason i.e. what you're paid before any deductions - that's what they're interested in.