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Query about dispensation based salary in tier1 extension

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

Moderators: Casa, Amber, archigabe, batleykhan, ca.funke, ChetanOjha, EUsmileWEallsmile, JAJ, John, Obie, push, geriatrix, vinny, CR001, zimba, meself2, Administrator

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techie_09
Member
Posts: 101
Joined: Thu Mar 26, 2009 1:07 am

Query about dispensation based salary in tier1 extension

Post by techie_09 » Thu Mar 26, 2009 1:20 am

Hi,

Firstly I searched the previous posts on this forum but unable to find answer to my query.

I am on HSMP and will be applying for extension some time later.
My company has put me on dispensation based salary structure in UK (i.e. some part of salary is exempted from the UK Income tax in legal manner). This tax free allowance is clearly reflected on the months salary slips.

a) My Gross salary reflected on salary slips is UK Allowances + Indian Salary but for tax calculation purpose some amount is exempted from tax (appx 1000 GBP) each month.

I will be using Total Gross for scoring points for Salary.
While applying for the extension can this tax exemption be an issue?

Please share your experience or comments.

Regards
Techie

halmet
Newly Registered
Posts: 9
Joined: Wed May 06, 2009 5:02 pm

Post by halmet » Thu May 07, 2009 8:54 am

Hi techie,

Did you get any suggestions to this one. Have already applied for extension ? Did you give any explanation on cover letter.

I am looking for similar advise.. I am in the same shoes as yours..

Any thoughts would be of great help.

Thanks

H

ChetanOjha
Moderator
Posts: 2771
Joined: Thu Dec 28, 2006 12:49 am
Location: London
United Kingdom

Re: Query about dispensation based salary in tier1 extension

Post by ChetanOjha » Thu May 07, 2009 12:43 pm

Techie,

You have payslips which shows Gross Salary in it. In the same payslips you have net salary mentioned. The same net salary is deposited into your Bank by your company. If this is the case, you are very well ready to go ahead.
techie_09 wrote:Hi,

Firstly I searched the previous posts on this forum but unable to find answer to my query.

I am on HSMP and will be applying for extension some time later.
My company has put me on dispensation based salary structure in UK (i.e. some part of salary is exempted from the UK Income tax in legal manner). This tax free allowance is clearly reflected on the months salary slips.

a) My Gross salary reflected on salary slips is UK Allowances + Indian Salary but for tax calculation purpose some amount is exempted from tax (appx 1000 GBP) each month.

I will be using Total Gross for scoring points for Salary.
While applying for the extension can this tax exemption be an issue?

Please share your experience or comments.

Regards

Locked