tier 1 (General)......interesting query

[imranhameed2000]

I get my wages every 2 weeks with allownce in my pay slips....in the following format

pay1 week 1 £100
Pay2 week 2 £100
travel & subsistnce £100

total gross pay £300

The tax only applies to £200. there is no tax paid on allowance.

my payslip shows the total gross pay including £100 of allowance i-e £300.

my query is will homeoffice only consider those £200 or they will consider the total gross pay written in my pay slip which is £300.

please note that this is part of remuneration package and this is not reimbursed money previously spent...also this allowance is given to me in payments section and all the allowance gets deducted in the deductions side...

Please help......

[imranhameed2000]

is there any one t help pleasee..........

[sunny!!!]

I get my wages every 2 weeks with allownce in my pay slips....in the following format

pay1 week 1 £100
Pay2 week 2 £100
travel & subsistnce £100

total gross pay £300

The tax only applies to £200. there is no tax paid on allowance.

my payslip shows the total gross pay including £100 of allowance i-e £300.

my query is will homeoffice only consider those £200 or they will consider the total gross pay written in my pay slip which is £300.

please note that this is part of remuneration package and this is not reimbursed money previously spent...also this allowance is given to me in payments section and all the allowance gets deducted in the deductions side...

Please help......

Hi,
I am not sure, but my understanding is that you can only claim the "taxable" amount as for earnings attribute. As you mentioned, allowance is not a taxable amount, I believe they will only consider £200 as an earning. However, you must take an expert's advice or read the policy document thoroughly, there must be some guideline for his.
Good Luck.

[imranhameed2000]

thnx very much mate.....

I have spoken to the solicitor and accountant they are saying that its the company problem if they are taking any tax or not its up to them. as far as they are adding this money to your salary in total gross that what counts.


Also in the policy guidence there is no mention of tax on allowences. its written that as far as it is not the reimburse money and is a part of remuneration package thats fine.


Please advise.........

[Natita]

there is no tax paid on allowance.

Although the taxable income is not always taxed at the time of payment, I find this is unusual as this allowance is paid through employer who has Pay as You Earn (PAYE) obligations. Having said that, I believe this allowance is taxable and can be rightly claimed for the income as it does not seem to fall under non-taxable income: http://www.adviceguide.org.uk/index/you ... income.htm

I recommend getting a letter from employer to confirm that the allowance is part of remuneration package and not reimbursed money previously spent though.

[imranhameed2000]

thankyou very much for throwing light on this..


I have the letter from the employer saying exactly this

" Money paid under T&S scheme allowence is a part of the remuneration package and it is the contractual obligation to pay this allowance and is not the reimburse money".

Will this be okay to go ahead with and claim all this allowance as earnings.

Please respond.

[silverline]

T&S allowance is subject to Tax (except if it's expense reimbursement)

Pay element on your payslips which is not subject to tax will most likely to be expense reimbursements - which doesn't constitute a taxable benefit and off course you can't use as earning for UKBA application.

If it's not expense reimbursement, then why PAYE tax is not being deducted. Check if your employer is paying National Insurance (ER contr.) on this pay element or not. If he is not paying NI ER then in eye of law it's tax evasion. You are not paying tax (despite PAYE) on your taxable pay and your employer is evading NI ER contribution.

Also check if you are paying NI EE contribution on this pay element on not.

Employer letter (as you mentioned) might not solve the problem unless case worker ignore taxability of earnings.

[imranhameed2000]

my solicitor is saying that UKBA will consider the total gross pay in the payslips...they are concerned about the totall gross....this includes the allowance.....

tax paying or not paying on the allowance is the employee problem as i am not self employed and my pay slip is showing the total gross pay including allowance...

i even dont get the allownace as they pay it in payments section, add it to the total gross pay and then whole allowance is deducted in the deductions side...and then the tax applies and after this NET pay is paid.

[Natita]

Pay element on your payslips which is not subject to tax will most likely to be expense reimbursements - which doesn't constitute a taxable benefit and off course you can't use as earning for UKBA application.

The fact that the tax was not deducted at payment does not mean the income is not subject to tax. It may have been done by error but that's employer's problem.

As long all the income including these allowances have been or will be declared to HMRC by imranhameed2000, I don't see there should be a problem.

[imranhameed2000]

thankyou so much natita...i am very confused and nervous..i am getting so many different views...atleast your post was supportive...


please keep posting on this matter as it will help me a lot.....


i think the ukba will just have a look at the total gross pay. i have a letter from company where the total gross pay also includes this allowance.

ukba will not be bothered to do such a deep research into it. letter from the company saying its not reimbursed money and this is remuneration package will also help

all the gross pays are real and included in the pay slips.

[silverline]

Pay element on your payslips which is not subject to tax will most likely to be expense reimbursements - which doesn't constitute a taxable benefit and off course you can't use as earning for UKBA application.

The fact that the tax was not deducted at payment does not mean the income is not subject to tax. It may have been done by error but that's employer's problem.

As long all the income including these allowances have been or will be declared to HMRC by imranhameed2000, I don't see there should be a problem.

@Natita - Applicant is not self-employed, assuming he don't have any other source of income, his P60 produced by employer and employer return to HMRC i.e. P14 contain info on all taxable income and relevent tax & NI paid. You are mixing up PAYE & self-employed.

@imranhameed2000 - I'm a chartered accountant and knows precisely the rules of the game. All i would suggest you to play by the rules. From your description of payslips, your payslips are NOT "standard" payslips -if you know what i mean. So be very cautious & careful.

[imranhameed2000]

@silver line: Thankyou sir......

i have not added all the info here that should be on the standard pay slip. i have just given rough idea in order to give understanding as to what i want. my pay slips have all the relevant section of payments, deductions, Gross and net pay.

i am very happy to know that yor are CA.

please clear this to me that is it total gross pay in the payslip or gross for tax in the payslip that matters i ukba. my solicitor have told me that at the end of day it is total gross pay in the pay slip that counts. they are not worried about any taxable or non-taxable amounts in case of not self-employed. because it is up to the company to pay taxes and how they handle their allowncas or what ever they add in the pay slip to show it to the HM revenue. the total gross pay in my pay slip that includes the allowance is addedd on to the next payslips under total gross to date with allowances in it. i have the letter from my company with breakdown of salary showing my total gross pay and net pay. the total gross pay includes the allowances in that spred sheet. i have gone through the ukba website. it is mentioned that as far as allownaces are declared in the payslips and is not the reimbursed money they can be claimed. there is no mention of taxes on allowances.

please now tell me wether can i use this total gross pay with my allowances in it by showing my payslips to ukba as part of earnings as this allowance is paid to me under payment section in payslip.



. i also have the letter from employer in which breakdown of my salary is shown. it shows the total gross pay and net pay. total gross pay includes the allowances.

please now tell me that can i claim total gross pay including the allowances in UKBA using my payslips and emplyer letter.

Thankyou

[silverline]

please clear this to me that is it total gross pay in the payslip or gross for tax in the payslip that matters i ukba. my solicitor have told me that at the end of day it is total gross pay in the pay slip that counts. they are not worried about any taxable or non-taxable amounts in case of not self-employed. Ask you solicitor - how about payslips WITHOUT any tax or NI at all? and why UKBA bothers about tax & NI of a self-employed but not employed (any special privilage)-use your common sense. Indeed, you will be awarded points on gross income but any suggestion that UKBA don't bother taxibility of an employed person is incompetent and shallow. It's a seperate issue if UKBA don't dig up to this extent, but if they do, where would you land? Your solicitor will simply charge few more grands out of your dear pocket for appeal etc.

Please now tell me that can i claim total gross pay including the allowances in UKBA using my payslips and emplyer letter. Anyone can claim anything, now it's upto UKBA to decide if they accept the claim or not. No one on this forum can gurantee your success with these earnings -if someone does i will offer you free consultancy of 1 hour...

Thankyou

[imranhameed2000]

Thank you for the post silver line......

My pay slips do take NI deductions and also they do take the tax. my whole point is what UKBA consider total gross pay what pay slips say OR gross for tax that pay slip says.........

Self employed are responsible for themselves to pay tax...in my case my company is reponsible to declare my incomes, earnings to the revenue...

[silverline]

Thank you for the post silver line......

My pay slips do take NI deductions and also they do take the tax. my whole point is what UKBA consider total gross pay what pay slips say OR gross for tax that pay slip says.........

Self employed are responsible for themselves to pay tax...in my case my company is reponsible to declare my incomes, earnings to the revenue...

Employer are simply withholding agents for tax collection & collect tax at source. It doesn't release employee's ultimate responsibility for tax. Employee is not responsible for mistakes of employer.

Gross taxable income, deductions i.e. Tax, NI EE etc & net pay is their primary concern.

[imranhameed2000]

So can i use the total gross pay as shown in my payslip (in my first post) as a earning.....i have the letter from empoyer which shows the breakdown of salary and includes the total gross salary together with this allowance....

please advise.....

[rajani1981]

My friend who is working on Tier-2 ICT for British Telecom in Befast has got Tier-1 visa 5 months back.
His earnings details:
1. In India, he used to get his full salary (around 5 lacs per annum) and whole income is taxable. This alone is not sufficient to claim 80 points as no uplift ratio is applied.

2. He used to get NON-TAXABLE amount of 2000 GBP credited into UK account every month and there is only one description, in his pay slip given by BT i.e., on-site allowance. He did not pay even a single pence as tax.

He claimed 12 * 2000 = 24,000 GBP + Indian salary.

And tens others followed him and all are successful.

Hundreds of TechMahindra employees from India are brought every month on Tier-2 ICT and they work for BT and never pay any TAX at all and 90% of them were applying for Tier-1 visa and all following the same success route. The numbers are phenomenal and I dont think the case workers are making same mistake time and again.

What does this mean?

It means that Case worker doesn't care about type of earning unless it says that the earning is a 'reimbursement'.

My 10 cents.....

[rajani1981]

Dear imranhameed2000,
I can understand your trouble. I just now called some friends working in BT Milton Keynes, HSBC London, IBM Leeds, HCL London, Accenture Birmingham. They are brought from parent companies in India and working here for clients. Some of them even lied to UKBA, I mean they have mentioned salaries of 50k-60k where in fact they were paid only 2000 GBP per month as NON TAXABLE allowance. Thats it.
All of them have the same format of pay slip like a single line desc "On site allowance" or "Additional allowance" but then NO TAX is paid.
No where was it said anything like 'contractual obligation by employer" or "is it a part of remuneration package". These pay details are not even mentioned in Indian remuneration package or UK remuneration package and in fact they dont have any letter specifying the remuneration package details in UK.
A simple corroboration of payslip or certificate with bank statements, of course has done the job.
I think by now, you might have understood. Stop contacting even your solicitor..go ahead...thousands of people are already successful. If you want proof, I cam PM you some pay slips.

[imranhameed2000]

thank you very much....

I have actually e-mailed mu payslips to my solicitor the other day...he has also assured me that i will be ok with this alowance.....

@silverline. Thank you to you too as well sir as you tried your best as well to make me underdstand...

i will go a head in first week of march as my earnings are then reaching the magic figures....

In the meanwhile please keep posting if there is anything else from which we all can benefit....