HSMP consider Gross or Net salary

Hi,
Can someone help me on this...

I have a gross salary of 26K pounds a year but my P 60 form for 2006 - 2007 shows me 22728£ taxable salary, because part of my salary is 'Tax Free Allowance'.

The Tax Free Allowance is due to my company on monthly basis ask me to declare a dispensation form for which I get this tax free allowance.

Tax Free Allowance includes: Rent, Travel, food, coucil tax, gas etc.

If I get a 20 in my salary then only I may qualify. Can someone help me or suggest me.

Gross

About your tax free allowance, whether you are allowed to do so, do not know. I believe John (mod) might shed the light about this issue

Pantaiema

richie_rohan wrote:Hi,
Can someone help me on this...

I have a gross salary of 26K pounds a year but my P 60 form for 2006 - 2007 shows me 22728£ taxable salary, because part of my salary is 'Tax Free Allowance'.

The Tax Free Allowance is due to my company on monthly basis ask me to declare a dispensation form for which I get this tax free allowance.

Tax Free Allowance includes: Rent, Travel, food, coucil tax, gas etc.

If I get a 20 in my salary then only I may qualify. Can someone help me or suggest me.

I had to appeal the refusal of my application after I applied using just the amount on my tax return. I thought after reading the Guidance that I could not count the tax-free income that was not reported on my tax return. However the caseworker added up the total gross pay (before any deductions) in my wage slips and refused my app because I claimed less than that total amount on my application form.

I learned that I would have been eligible to claim all my gross income, and I should have written in my cover letter why my tax return stated less money than the sum total gross of my wage slips. It would have helped the original caseworker if I had also provided a letter from my employer breaking down the gross, taxable, and non-taxable portions of each wage slip I sent. I have 26 pay periods per year (payday every other week) so it would have been a large chart to put into a letter, but it would have significantly clarified matters for the original caseworker.

My application was approved on review because I explained in my review letter how the sum total taxable wages on each wage slip matched the taxable income on the W-2, and that I claimed this taxable amount as my income. I threw into my review letter that the Guidance does not say specifically whether absolute gross or gross taxable wages should be considered, only that gross rather than net should be considered.

I hope you are successful on your first try. I probably have some grey hairs from worrying about my application and I claimed 20 age points

I agree with you. I have a similar case and I have provided 2 covering letters. One for explaining all the supporting documents and the other one specific to previous earning. The previous earning cover letter letter is as below:

Dear Sir/Madam,

RE: Explanation of Salary Statement and previous earnings

Kindly find an explanation below for the Gross Salary claimed as £ XX:

1. P60 contains the Taxable Pay not the Gross Pay for the year 2006 - 07

2. As per March 2007 Salary Slip:

i. Taxable Pay = £ XXXX
ii. Gross Pay = £ XXXX

3. Kindly refer to April 2006 pay slip for clarification.

i. The deviation is due to the fact that "-------"
ii.I have mentioned the detail breakup of Cumulative Taxable Amount Cumulative Gross Amount in the “Income for past fourteen months“ grid.

The documents provided are:

 Salary Slips: This shows the Gross Pay, Net Pay and Taxable Pay for the period March 2006 till May 2007

 P60: This shows the Taxable Pay for the year 2006 – 07

 Bank Statements: This shows the Net Pay credited each month from 14th March 2006 till 23rd June 2007

 Salary Certificate: This shows the Gross Pay from the employer, Employer's Name

I trust the information I have provided is satisfactory for granting me XX points under previous earnings claim. However if you have any questions or queries or require additional information, please do not hesitate to contact me on XXX or alternatively via email XX@XX.com.

Many thanks for your time and effort in advance.

Yours Sincerely

YOUR NAME




Hope it helps!!

Thanks a lot all... it really gave me a idea how to go about it. Any one else have any personal experience please reply back.

Thanks again....