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Payment in lieu of Annual Leave counted as earnings?
Posted: Wed Sep 26, 2012 11:45 am
by kapilc
Hi,
Please can someone advise if the payment made in lieu of annual leave not taken considered as earnings for the purpose of points calculation.
Thanks,
Kapil
Re: Payment in lieu of Annual Leave counted as earnings?
Posted: Wed Sep 26, 2012 11:59 am
by p2kin
kapilc wrote:Hi,
Please can someone advise if the payment made in lieu of annual leave not taken considered as earnings for the purpose of points calculation.
Thanks,
Kapil
As I understand, it should be considered as earning as long as it says so on your payslip..
See the last point on "Earnings may include, among other things:"
http://www.ukba.homeoffice.gov.uk/visas ... /earnings/
Allowances
We will only include allowances (such as those for accommodation or schooling for your children) in the assessment of your previous earnings if they are part of your remuneration package and are not paid to reimburse you for money you have previously spent.
We will only accept allowances as earnings if they are declared in your payslips and your employment contract says that your employer must pay these allowances.
You might argue that this is a type of allowance...
Posted: Wed Sep 26, 2012 12:09 pm
by kapilc
Thanks very much - thats helpful!
Posted: Wed Sep 26, 2012 12:17 pm
by innocentdevil
anything you pay tax on is earning.
If you are paid for your holiday then it is taxed because when you take your holidays (lets say for a week) you get your normal pay after deduction.
on the other hand, expenses are not taxed at all.
if you look on your payslip it should say Gross Salary and also Gross salary for Tax
Re: Payment in lieu of Annual Leave counted as earnings?
Posted: Wed Sep 26, 2012 1:29 pm
by Casa
kapilc wrote:Hi,
Please can someone advise if the payment made in lieu of annual leave not taken considered as earnings for the purpose of points calculation.
Thanks,
Kapil
You may have a problem here as it is no longer legal for an employer to make a payment in lieu of annual leave:
From the Direct Gov website:
Payment in lieu for holiday or 'buying out'
You are not allowed to exchange any untaken statutory holiday entitlement for pay. You must take all of your statutory holiday entitlement each year.
Re: Payment in lieu of Annual Leave counted as earnings?
Posted: Wed Sep 26, 2012 4:00 pm
by Adojay
Casa wrote:kapilc wrote:Hi,
Please can someone advise if the payment made in lieu of annual leave not taken considered as earnings for the purpose of points calculation.
Thanks,
Kapil
You may have a problem here as it is no longer legal for an employer to make a payment in lieu of annual leave:
From the Direct Gov website:
Payment in lieu for holiday or 'buying out'
You are not allowed to exchange any untaken statutory holiday entitlement for pay. You must take all of your statutory holiday entitlement each year.
What if in my case where I left my job three months ago, but still had a portion of my leave remaining. In my final pay, I got paid through salary the remaining leave untaken. Does that mean I cannot claim that as earning as part of points calculation?
Kind regards,
Adojay
Posted: Wed Sep 26, 2012 4:08 pm
by Casa
Holiday pay in lieu can be paid if the employment has ended.
Posted: Wed Sep 26, 2012 4:20 pm
by Adojay
Thanks Casa for the clarification.
For those seeking confirmation, see link below;
http://www.businesslink.gov.uk/bdotg/ac ... =RESOURCES
Re: Payment in lieu of Annual Leave counted as earnings?
Posted: Thu Sep 27, 2012 2:05 pm
by frey80
kapilc wrote:Hi,
Please can someone advise if the payment made in lieu of annual leave not taken considered as earnings for the purpose of points calculation.
Thanks,
Kapil
yes, i did 2 years ago
Re: Payment in lieu of Annual Leave counted as earnings?
Posted: Thu Sep 27, 2012 2:39 pm
by innocentdevil
frey80 wrote:kapilc wrote:Hi,
Please can someone advise if the payment made in lieu of annual leave not taken considered as earnings for the purpose of points calculation.
Thanks,
Kapil
yes, i did 2 years ago
was it successful for you ?