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Calculation of Annual Salary

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Niknam H
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Calculation of Annual Salary

Post by Niknam H » Mon Sep 20, 2021 1:42 pm

Hi

I have been a non legal person but in my capacity as local councillor have been helping the community with immigration cases for a long time. I thought I had come across every type of stupidity at the Home Home Office but I have a new one and need to ask if it could be done again.

Applicant works for major accounting firm as an graduate analyst - applying for spousal visa.
HR department of her employers quite clearly state that her monthly income is made of two components, a basic salary plus a "benefit allowance" . On advice from lawyers and reading the guidelines, this seems ok as the two components are on the payslip each month and the net amount is deposited in the bank directly.

The guidelines seem to basically say as long as it is on a payslip and NI and tax is paid on it then the amount should be included in any calculation of annual salary, the guidelines state even overtime payments are acceptable.

Question 1) Is that a correct?

THE ECO then uses ONLY the basic salary and crudely multiplies by 12 which means the applicant is marginally under the £18600 threshold! The ECO does not give a reason or explain why they have EXCLUDED the "Benefits Allowance" component of the applicants salary.

If the ECo had included the "benefits allowance" the applicant would be well over the threshold.

Question 2) Has the ECO incorrectly applied the guidelines and should have included the "benefits allowance"?

They applicants have lodged an appeal, but with the time it takes to hear an appeal, it may be better to lodge a fresh application, but the applicant is scared that they may across the same issue.

Any advice?

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CR001
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Re: Calculation of Annual Salary

Post by CR001 » Mon Sep 20, 2021 2:10 pm

What is the benefit allowance for or what does it cover exactly?
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Niknam H
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Re: Calculation of Annual Salary

Post by Niknam H » Mon Sep 20, 2021 3:36 pm

I believe it is just a way of paying individual amounts to their individual employers. It is paid every month. The employer is a worldwide major accountancy firm.

Am I wrong in assuming that it should be included. I have spoken 6 lawyers, a variety of solicitors an barristers and say it SHOULD be included in any calculations of annual employment income.

FM SE 1.

(m) Cash income on which the correct tax has been paid may be counted as income under this Appendix, subject to the relevant evidential requirements of this Appendix.

(n) The gross amount of any cash income may be counted where the person’s specified bank statements show the net amount which relates to the gross amount shown on their payslips (or in the relevant specified evidence provided in addition to the specified bank statements in relation to non-employment income). Otherwise, only the net amount shown on the specified bank statements may be counted.”

TODMATT
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Re: Calculation of Annual Salary

Post by TODMATT » Mon Sep 20, 2021 3:55 pm

This is certainly not a big issue to be honest.

If the basic salary annual meets the requirement, you do not need to add the benefits allowance or even overtime itself. In the occassion where the basic salary is below the requirement, overtime, commission or bonus etc can be added to be basic salary and as per the guidance, it is calculated using non salaried approach and it will be added back to the basic salary. If someone has received some benefits in the last 6 months, they can do the average if they want to be added to the basic salary. Either way it is not an issue from my view.

The only issue will probably be, the individual was salaried and caseworker has taken the lowest salary in the last 6 months x 12.

I know someone personally who never had to use his bonus as his income was well above the threshold.

Can we read the refusal letter?
My opinions should not be constituted as an immigration or legal advice.

Niknam H
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Re: Calculation of Annual Salary

Post by Niknam H » Thu Sep 23, 2021 9:37 am

Thanks for replying.

Thats the point the £50 is paid EVERY month and is on every payslip, like so

Basic Salary 1512.50
Benefits Allowance 50.00

The ECO in his judgement preamble states:
“You state that your sponsor is employed by xxxxxx since 04/1/19 and earns an annual salary of £18750. As evidence of your sponsors employment, you have submitted an employment letter, payslips and bank statements”

Unfortunately, the ECO then goes on to 1) totally ignore this evidence 2) makes an error in grossing up the salary of the sponsor.

Nowhere in his judgement does the ECO explain why he has ignored the evidence and the £50 per month in his calculations.

The questions are: Is this an error? If we put in a fresh application, can another ECO do the same thing?

Incidentally, since the application the, the applicant's basic pay is above the threshold, but do we have to wait six months to submit?

TODMATT
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Re: Calculation of Annual Salary

Post by TODMATT » Thu Sep 23, 2021 7:51 pm

Niknam H wrote:
Thu Sep 23, 2021 9:37 am
Thanks for replying.

Thats the point the £50 is paid EVERY month and is on every payslip, like so

Basic Salary 1512.50
Benefits Allowance 50.00

The ECO in his judgement preamble states:
“You state that your sponsor is employed by xxxxxx since 04/1/19 and earns an annual salary of £18750. As evidence of your sponsors employment, you have submitted an employment letter, payslips and bank statements”

Unfortunately, the ECO then goes on to 1) totally ignore this evidence 2) makes an error in grossing up the salary of the sponsor.

Nowhere in his judgement does the ECO explain why he has ignored the evidence and the £50 per month in his calculations.

The questions are: Is this an error? If we put in a fresh application, can another ECO do the same thing?

Incidentally, since the application the, the applicant's basic pay is above the threshold, but do we have to wait six months to submit?
Have you involved the MP on this matter for help? The refusal was wrong as you have extra £600 to be added to the base salary if the basic salary has remain the same throughout the whole 6 months periods.
My opinions should not be constituted as an immigration or legal advice.

Niknam H
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Re: Calculation of Annual Salary

Post by Niknam H » Mon Sep 27, 2021 12:03 pm

Thanks again for your reply.

Yes, I have tried the MP who has written to the Home Office, unfortunately, just got robot answer - "...applicant has judgment letter, should follow the instructions in the judgement...."

FYI we have submitted for reconsideration, and submitted an appeal.

Knowing the timelines on appeals presently, the quickest option seems to be to submit a fresh appeal.

This raises the following questions>
Can another ECO make the same calculation? I E ignore the benefits allowance?

The applicants base salary WITHOUT the benefits allowance is now above the threshold, but it starts on 1st September - will the ECO take that into account do we have to wait six months to be absolutely sure?

Many thanks

Niknam H
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Re: Calculation of Annual Salary

Post by Niknam H » Mon Sep 27, 2021 12:13 pm

should say , quickest thing to do is lodge fresh application

TODMATT
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Re: Calculation of Annual Salary

Post by TODMATT » Sat Oct 02, 2021 7:06 pm

Niknam H wrote:
Mon Sep 27, 2021 12:13 pm
should say , quickest thing to do is lodge fresh application
I do agree Fresh application will be a good idea but make sure they explained to the caseworker how the requirement is met plus quoting the guidance.
My opinions should not be constituted as an immigration or legal advice.

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