seagul wrote: ↑Sun Nov 12, 2017 5:48 am
AmazingSully wrote: ↑Sat Nov 11, 2017 9:04 pm
seagul wrote: ↑Sat Nov 11, 2017 7:21 am
AmazingSully wrote: ↑Sat Nov 11, 2017 6:36 am
The £200 deduction WILL matter because your payslips must match your bank statement deposits. As one of the previous posters mentioned, get a signed statement from your employer noting this, and attach a note to the statements this involves. If they are unable to connect your payslip to your bank statement they will go off of net earnings and not gross earnings which could set you under the requirement.
Only gross wages before tax & other deductions matters and bank statements usually display net wages and HO is aware of that.
Yes, but the net wages are shown on your payslip and must match your bank statements. If they do not then HO can't verify exactly what your gross wages are, and based on Apprnedix FM 1.7, section 3.1.4, "Where the gross (pre-tax) amount of any income cannot be properly evidenced, the net (post-tax) amount will be counted, including towards a gross income requirement."
So in other words they must match up, if they do not then they will only consider the net income which can cause problems. This is why having a signed letter from your employer would be needed as this would satisfy the requirement of evidence for these pay periods, allowing gross income to be used.
I think you again misunderstood. As you have now learned that only gross wages matter but you still need to know that taxes and deductions are usually made over gross wages to calculate net wages. In every work place it's a common practice that employer make deductions apart of tax such as pension contribution, training fee, uniform fee, any debt, etc for which HO must be aware.
I know the difference between gross and net wages, definitely not misunderstanding. Your payslip will show both net and gross earnings, your bank statement will show the deposit of net earnings, this is the proof that connects them, and what they will need to see. This is why you need to supply both your bank statements and payslips, so they can see the proof that you are actually receiving the money written on your payslip. They need to see that the deposits on your bank statement match the net earnings on your payslip. They can then use the payslip it corresponds to to use the gross earnings on your payslip.
Here is an example:
Your payslip shows gross earnings of £1800. After taxes and deductions the net earnings is £1600. Your bank statement then has a deposit of £1600. This is how it should be. They can now see the £1600 deposited into your account, but that's net income, not gross income. In order to credit you the value for gross income they look at your payslip that corresponds to that deposit and see it is £1800 and they credit you.
Let's now look at another example:
Your payslip shows gross earnings of £1800. After taxes and deductions the net earnings is £1600. Your bank statement however has a deposit of £1400 (because of what the OP listed). Because the deposit does not match any of your payslips they are unable to verify what the gross earnings actually were for that period (because your payslip no longer makes sense, if it did you would get paid £1600). Because HO can no longer verify your gross income for this period, under Appendix FM 1.7 Section 3.1.4, HO must use your net earnings in the calculation as gross earnings are not properly evidenced. If however you also had a letter from your employer explaining the £200 discrepancy, then the evidence requirement is met, and they can use the gross income listed in your payslip.
