Tier 1 (General) Extension - Question about earnings

1. If I was granted private shares in the company I work with as part of my bonus, does the value of those shares count towards my earnings?

2. If I elected to take plough some of my earnings through a private company share scheme, would any earnings I elect to divert in to that count as my earnings?

I assume the answer to both is yes, since technically both of them generally count as earnings related to my day to day professional job - but I am not able to find documentation that support this. Any help anyone can provide to correct my misinformation / help my understanding will be greatly appreciated.

frankleigh wrote:1. If I was granted private shares in the company I work with as part of my bonus, does the value of those shares count towards my earnings?

No.

frankleigh wrote:2. If I elected to take plough some of my earnings through a private company share scheme, would any earnings I elect to divert in to that count as my earnings?

Take plough? What are you trying to say?

I basically mean that if I decide to sign up for a company share scheme (a scheme to purchase shares of the company at employee rate through my salary), would any salary I put towards the share scheme count as earnings?

Semi-related question - would anything I put in to a pension fund as part of my salary count as earnings - again - I assume yes?

In terms of tax benefits - putting my money in to a company share scheme is similar to a pension fund.

Just checked - and it seems anything I plough in to a pension fund does not count!

Guess that answers my question - and is a no?

frankleigh wrote:I basically mean that if I decide to sign up for a company share scheme (a scheme to purchase shares of the company at employee rate through my salary), would any salary I put towards the share scheme count as earnings?

Yes, if the amount you put in the scheme is shown as a "deduction" (from gross salary) in your salary slip.

frankleigh wrote:Semi-related question - would anything I put in to a pension fund as part of my salary count as earnings - again - I assume yes?

Yes, if the same principle (as above) applies.

Hi, I know it may be slightly complicated to understand..still trying my best to put this in simplest possible way.

Building further on the earlier queries about pension ,just trying to seek clarity and confidence on what is considered in the earnings :

I work as a salaried employee and my company offers salary as basic plus value account.My salary slip shows as:

Basic pay - x
value A/c top up -y
pension benefit fund-z
pension cont- a (-ve amount) - i contribute this to my pension
disability cover- b(-ve amount ) - I pay amount b as cover premium
Life cover - c(-ve amount) -I pay amount c as premium for life cover

AT THE BOTTOM , it then shows

Total taxable payments= x+y+z+a+b+c (a,b,c are negative amounts)

Total Gross Payments = (same as total taxable payments)

Now in this scenario, I am getting sum =x+y+z as salary and paying a,b,c as premiums/pension contribution from my salary

Total gross payments shows amount after deducting a,b,c . BUT it says total gross payments not total gross salary.

The slip also shows sum of a,b,c as saving in right column.

Is it correct to say that my gross earnings will be considered as the amount x+y+z which is the amount before I paid any pension contribution and cover premiums?

Explain what is "value account top up".

sushdmehta wrote:Explain what is "value account top up".

Hi,value account top up is that part of salary for which company gives the option to take as cash or in the form of benefits(for ex. Vouchers- to get tax benefits etc)

feedback556 wrote:Hi,value account top up is that part of salary for which company gives the option to take as cash or in the form of benefits(for ex. Vouchers- to get tax benefits etc)

In such case:

feedback556 wrote:Is it correct to say that my gross earnings will be considered as the amount x+y+z which is the amount before I paid any pension contribution and cover premiums?

Yes.

many thanks for confirming this Sushdmehta

ONLY portion of pay which is taxable counted towards visa

what ever name u give to pay headings

Sushil-ACCA wrote:ONLY portion of pay which is taxable counted towards visa

what ever name u give to pay headings

Hi, can you please be specific in your comment- so do you agree with Sushdmehta or disagree?