Employer Letter - payslips

[PK]

Hi Guys

Plz help if you can...
I will apply for ILR under HSMP JR in June 2010. Got HSMP stamping on 16th June 2006

I work for an umbrealla company. My P-60 shows less salary than it actually is. My net Income In my bank account is nearly same as my P-60, so I'm planning to get a letter from my Employer in the following format.

To Whom It May Concern:

Ref: Indefinite leave to remain application by XYZ

I can confirm that XYZ is an employee of XXX Ltd since XX-XX- XXX.

I can also confirm the earnings of XYZ as follows:


XYZ's gross earnings from XXApril 2007 – 31st Dec 2007 was £ and the net amount paid into XYZ's bank account was £ XXX

XYZ's gross earnings from 1st January 2008 – 31st Dec 2008 was £ and the net amount paid into XYZ's bank account was £ XXX

XYZ's gross earnings from 1st January 2009 – 31st Dec 2009 was £ and the net amount paid into XYZ's bank account was £ XXX

XYZ's gross earnings from 1st January 2010 – 31st May 2010 was £ and the net amount paid into XYZ's bank account was £ XXX



I can also confirm that we would be more than happy for XYZ to carry on working for us in the future.

If you have any further queries please feel free to contact me


Is this letter good enough or shall I ask my employer to write why there's a difference in my P-60's Gross salary and my employer's gross salary and the way they calculate this.

Any help will be much appritiated

PK

[PK]

any comments Plz.............

[shs213]

I work for an umbrealla company.

My P-60 shows less salary than it actually is.

My net Income In my bank account is nearly same as my P-60,

Working through an umbrella company is not a problem to claim earnings...

Earnings > P60 income but P60 income = bank statement ---- what does this mean?

reading your question, i have more questions than possible answers :0)

[PK]

Thanks Shs213

Basically my net income is nearly equal to my gross salary beacuse when my agency sends my pay to the umbrealla company, they deduct my expenses( which i have to submit each week like breakfast, lunch, travel expenses) from that salary and then show the balance as my gross pay. After taking the tax and NI from my goss pay they then add the expenses back so I have a more take Home pay.

The goss pay is the amount on my P-60

Is this clear....

Plz guide me

Thanks

[shs213]

Thanks Shs213

Basically my net income is nearly equal to my gross salary beacuse when my agency sends my pay to the umbrealla company, they deduct my expenses( which i have to submit each week like breakfast, lunch, travel expenses) from that salary and then show the balance as my gross pay. After taking the tax and NI from my goss pay they then add the expenses back so I have a more take Home pay.

The goss pay is the amount on my P-60

Is this clear....

Plz guide me

Thanks

not sure if i still follow what your saying....

The way i understand is [and the way umbrella co work] is, Agency pays umbrella company your full pay...

Say 1000 a month, then umbreall co deducts your expenses, say 100... then your taxable income becomes 900 a month on which you pay taxs, say £90 for 900 taxable income...

so in your payslip you will see 1000 gross income, 90 tax, 910 after tax... when you get paid you will get paid 910+100 [net pay plus exp]...

your p60 will be 1000*12...

if this is the case, then i dont see any problems...

if at all, to be on the safe side you can add a letter from your umbreall company to explain how they function. i.e. explaining that the money paid in to the bank includes salary plus expenses...

does this help? I used to be work through an umbrella comp so i have an idea about how they function....

[PK]

Thanks Shs213

You'r right

Eg:

Agency Pays Umbrealla company £1000
Umbrella company deducts (payroll expenses £40, Employers NI £80 , my expenses £180 Total =300). then they calculate my tax and NI on £700 and this £700 is on my P-60. After decucting the tax say £100 Pounds they add the Net salary(Gross £700- Tax£100=£600) £600 to my expenses £180 and pay a total of £780 in my bank account. ( £600 + £180)

The only difference is Instead of £1000 Pounds My P-60 will show my gross salary as £900, based on your example.

Shs213 Do you think the letter format I have on this page will help. I've got comments from other people that this letter will make my case more complicated.

Plz advice

Thanks
PK

[shs213]

HI, hmmm... I havent attended my ILR yet, so i dont know have personal experience to comment on what the case workers are like...

my opinion is, as you have been in umb co consistently i wouldnt take any letters. what ever the diff you see in your gross pay / bank / P60 will be consistent through out. So the case worker will see a patern.

if they ASK - I would explain. There's no problem in using an ump compnay. So if there's no problem dont fix it. writting that letter will only lead to more questions in my view.

may be as back up, you can have a letter from ur umb company explaining your earnings breaking down to gross, expenses, tax deduction, paid to the bank to tie back with your payslips and banked money.... but i doubt this will be required....

you wont be the only one in the history of ILR case workers to have come across this situ - so you should be OK....

you r not doing anything illegal, so you got nothing to worry. Just be prepared to explain if they ASK, only IF they ask....

keep us posted...Good luck...

[PK]

Thanks Shs213

[PK]

Hi Shs and othet fellow colleagues.

I spoke to my employer and they said they will give me the letter in the format I mentioned and they will also explain how they worked out my gross salary and the net Income. I feel relieved and they said HO knows how Umbralla complies work and how they calculate pay and if the HO is in any doubt they can always check with my employer.

Guys what do u suggest. I had mixed feedback about the employer letter I want to submit. Is this letter OK or Its not necessarily required.

Plz comment friends. I don't want to spend unnecesarily on solicitors advice, not to mention their high fees,

Many thankss

[PK]

Plz guys any comments

[1664]

Under HSMP JR you don't need to worry much,all you have to prove is you have been economically active - this also means not working but looking for work..

However you are in employment and paying you taxes which is what the HO requires.

If you have an employer willing to give you a letter and support what your views are then go for the letter especialy because you want to show it and close any loop holes you think there may be.

Sure thing is HO knows how the Umbrella company works as there are wide number of them in the market place.

Include the letter and other documents you have (May be a good idea to list them and get a final view) and go for it.

I am going for my ILR HSMP JR next month too...

Good Luck mate..keep us posted!

[PK]

Hi 1664

Thanks for your reply. I'm placing more emphasis on employer letter beacuse the gross salary and the net salary will differ by about £4000 each year for the last three years compared to my P-60. If the employer letter says that my gross salary is more than P-60 beacuse of the way they calculate my pay, I think it should be fine.

Thanks 1664 your reply has given me comfort.

Will keep you posted on how things go.

PKS

[1664]

No worries.. you'll be fine. Good Luck.

When are you applying?

[PK]

Hi 1664

I can apply anytime after 18 May 2010, but was planning to apply in the first week of June around 10th. How abt u ?