ESC

Click the "allow" button if you want to receive important news and updates from immigrationboards.com


Immigrationboards.com: Immigration, work visa and work permit discussion board

Welcome to immigrationboards.com!

Login Register Do not show

Question on Taxed Income and Gross Income

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

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

Locked
niranhopper
Newly Registered
Posts: 25
Joined: Fri Dec 05, 2008 7:29 pm

Question on Taxed Income and Gross Income

Post by niranhopper » Wed Jun 30, 2010 6:51 pm

Hi

I have two components in my UK salary slip, namely Gross Pay and Taxable Pay. For example if my gross pay is 2500 GBP and i submit house rent bills for 500 GBP, then my taxable pay becomes 2000 GBP i.e. i dont pay tax for the bills that i submit.

If i am applying for Tier-1 VISA extension, then should i consider only the taxable pay or can i consider the entire gross pay?

[iD]
Senior Member
Posts: 857
Joined: Sat Sep 29, 2007 12:36 am

Re: Question on Taxed Income and Gross Income

Post by [iD] » Wed Jun 30, 2010 9:19 pm

niranhopper wrote:Hi

I have two components in my UK salary slip, namely Gross Pay and Taxable Pay. For example if my gross pay is 2500 GBP and i submit house rent bills for 500 GBP, then my taxable pay becomes 2000 GBP i.e. i dont pay tax for the bills that i submit.

If i am applying for Tier-1 VISA extension, then should i consider only the taxable pay or can i consider the entire gross pay?
It'd be the earning you paid tax on
Goodluck.

John
Moderator
Posts: 12320
Joined: Wed Nov 10, 2004 2:54 pm
Location: Birmingham, England

Post by John » Wed Jun 30, 2010 9:29 pm

I have two components in my UK salary slip, namely Gross Pay and Taxable Pay. For example if my gross pay is 2500 GBP and i submit house rent bills for 500 GBP, then my taxable pay becomes 2000 GBP i.e. i dont pay tax for the bills that i submit.
I think HMRC would be very interested to know more about that arrangement.
John

niranhopper
Newly Registered
Posts: 25
Joined: Fri Dec 05, 2008 7:29 pm

Post by niranhopper » Wed Jun 30, 2010 10:11 pm

Thanks for the quick reply. Actually the calculation is not reflected in the sheet. It simply says, Gross Pay, Taxable Pay and Net Pay (net pay is the gross pay minus deductions like income tax, NI contribution).

My company has sent me on an onsite deputation and i qualify easily using the gross pay. What i do is declare my claims in the beginning of each month and sumit the bills for each quarter. My salary gets adjusted every month based on the declared amount and the bills submitted. So if i fail to submit for a quarter, i get taxed heavily on that last month in the quarter. If this happens, then my taxable pay is greater than the gross pay. This looks very odd and suspicious in my statement.

Anyone had a similar pay structure? Can i check with HMRC on what they would consider? I am not sure if i can take their word as i dont trust call center people.

[iD]
Senior Member
Posts: 857
Joined: Sat Sep 29, 2007 12:36 am

Post by [iD] » Wed Jun 30, 2010 11:14 pm

niranhopper wrote:Thanks for the quick reply. Actually the calculation is not reflected in the sheet. It simply says, Gross Pay, Taxable Pay and Net Pay (net pay is the gross pay minus deductions like income tax, NI contribution).

My company has sent me on an onsite deputation and i qualify easily using the gross pay. What i do is declare my claims in the beginning of each month and sumit the bills for each quarter. My salary gets adjusted every month based on the declared amount and the bills submitted. So if i fail to submit for a quarter, i get taxed heavily on that last month in the quarter. If this happens, then my taxable pay is greater than the gross pay. This looks very odd and suspicious in my statement.

Anyone had a similar pay structure? Can i check with HMRC on what they would consider? I am not sure if i can take their word as i dont trust call center people.
Read below, or read the entire section for better idea

Code: Select all

124.	Unearned sources of income that we will not consider as previous earnings include:
•expenses (such as accommodation, schooling or car allowances) that reimburse the applicant for money he/she has previously spent;
• dividends, unless paid by a company in which the applicant is active in the day-to- day management, or unless the applicant receives the dividend as part or all of his/ her remuneration package;
•income from property rental, unless this forms part of the applicant’s business;
•interest on savings and investments; •funds that were inherited; • money paid to the applicant as a pension;
•expenses where the payment reimburses the applicant for money he/she has previously spent;
•redundancy payment; •sponsorship for periods of study; •state benefits; or
•prize money or competition winnings, other than where they are directly related to the applicant’s main profession or occupation.

-Source: Tier 1 (General) Policy Guidance page 23 of 48
Looks like they do not consider expenses included in your gross salary. So it'll have to be actual taxable income on which you paid income tax.
Goodluck.

Locked
cron