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How to calculate COS

 
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monu1234
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Joined: 17 Jul 2012
Posts: 5

PostPosted: Tue Jul 17, 2012 1:52 pm    Post subject: How to calculate COS Reply with quote

Hello,

As per current Tier 2 Intra Company Transfer, if one needs to apply for long term visa i.e. 3yr and further extendable 2 years(60 mnths in total) the minimum salary should be 40000 pound per annum. As many indian cmpnies pay indian salary + allowances to their employee so how the cmpny reach feagure of 40000 pound,is this figure inclusive of taxes paid by employer to Uk govt.

lets say one's indian salary is 10Lakh INR anually (equivalent to 11764 pound at conversion rate of 1GBP = 85 INR) and employer pays 22800 pound anually to individual as allowance in UK so total indivudal gets is 11764 + 22800 i.e. 34564. Now i want to know do i have to add taxes also that employer pays in above figure when calculating COS amount or is it that employee should get 40000 in hand salary?

Thanks,
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manci
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Joined: 15 Feb 2012
Posts: 1543

PostPosted: Tue Jul 17, 2012 7:20 pm    Post subject: Reply with quote

the gross salary must be minimum £40k.

From the guidance:

70. It may be paid in the UK or abroad. If you will be paid abroad in a currency other than pounds sterling, the salary amount entered on your Certificate of Sponsorship will be based on the exchange rate published on www.oanda.com on the day the Certificate of Sponsorship is assigned.
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monu1234
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Joined: 17 Jul 2012
Posts: 5

PostPosted: Wed Jul 18, 2012 7:03 am    Post subject: Reply with quote

Thanks for your reply...as per my understanding Gross salary equals to salary in hand + taxes paid to government, if that is correct then one need to add taxes paid in UK for calculating total gross salary and if it is greater then equal to 40000 then long term visa. Am i correct?

Also do you have any idea as how much will be gross if someone is getting 22800 in hand?

Thanks,
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manci
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Joined: 15 Feb 2012
Posts: 1543

PostPosted: Wed Jul 18, 2012 9:33 am    Post subject: Reply with quote

monu1234 wrote:
Thanks for your reply...as per my understanding Gross salary equals to salary in hand + taxes paid to government, if that is correct then one need to add taxes paid in UK for calculating total gross salary and if it is greater then equal to 40000 then long term visa. Am i correct?

Also do you have any idea as how much will be gross if someone is getting 22800 in hand?

see paragraphs 362 and 363 of the sponsor guidance:
http://www.ukba.homeoffice.gov.uk/sitecontent/documents/employersandsponsors/pbsguidance/guidancefrom31mar09/guidance-t251.pdf?view=Binary
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monu1234
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Joined: 17 Jul 2012
Posts: 5

PostPosted: Wed Jul 18, 2012 10:59 am    Post subject: Reply with quote

Thanks for your help again but sadly document do not tell how 40000 pound be calculated i.e. does it include taxes that employer pays to Uk govt?

Thanks,
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manci
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Joined: 15 Feb 2012
Posts: 1543

PostPosted: Wed Jul 18, 2012 12:12 pm    Post subject: Reply with quote

monu1234 wrote:
Thanks for your help again but sadly document do not tell how 40000 pound be calculated i.e. does it include taxes that employer pays to Uk govt?Thanks,

Taxes that either you or your employer pays have absolutely nothing to do with your gross salary. See also paragraphs 222 and 223 in the guidance (link in previous post)
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iworker
Junior Member


Joined: 09 Aug 2012
Posts: 22
Location: Hampshire

PostPosted: Fri Aug 10, 2012 2:17 pm    Post subject: Reply with quote

if u getting around 22400 per anum here in hand, then the gross will be around 28.5 if it helps..
although i dont think they will give u a figure of what u will get after taxes.. the salaries are always mentioned as gross.. if ur company is saying u will get 22500 in uk, it means before tax.. or it should be that way..
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