Yet another query on Past Earnings - Please advise

[andy2007]

Hi All,
Thought I will post this query up front rather than in a thread. My Apologies if this is repeated.


I have applied for HSMP in oct from India. I have a question regarding Previous earnings. I come under salaried employees category.

My claim period is Sep '06 to Aug '07. I submitted foll docs:
-ITR1 which in India is for period Apr06 to Mar 06.
-copy of latest Form 16 .
-12 Attested payslips for full claim period
-ITR1 does not cover my claim period hence I claimed Exceptional Consideration.
I submitted Bank Statements for full claimed period.

The ITR form only covers 7 months of my claim period i.e. Sep06 to Mar07. It does not cover last 5 months. Also for each month of claim period the net salary amount on payslip matches with bank statement for each month. Hence Net salary is corroborating.

Now to corroborate Gross salary I took total of gross salary from payslip of each month of claim period. So the question is, does this figure (i.e. addition of monthly gross amount from all 12 payslips) have to match with Gross Salary figure on ITR1 from? In my case it does not. I thought it was OK considering that this is not the ITR1 form for my claimed period ,and is for financial year period, so it will never match. But now this question is worrying me.Others please let me know how you handled this in your application.


Another thing is, in my case salary for each month varies due to a performace linked incentive during each month. This incentive amount is clearly mentioned on salary slip. So matching annual gross salary for current year and previous year will never give same figure.
Hence even if they compare gross salary on form16(of previous year) that I submitted with gross salary total from payslips for the claimed period, these two figures are not same due to above reason(i.e. variable component in salary stack). Will this cause problem in my case? i.e. Caseworker trying to tally total of gross sal from payslip with gross sal figure on form16?

Please let me know how you handled this?

Thanks and Regards,
Andy

[hsmphsmp]

This is problem common for most hsmp applicants from India. My best advice is not to rely on ITR to match your salary figures, mostly it will not match, in some cases you would have got exemptions or allowances that are not taxable yet shown in salary slip, so it may never match one to one. I used salary slip, bank statment and letter from employer to match. I created an excel sheet matching what documents to look for each month and how to match the net/gross figures for each month. This worked for me and I got my appln approved. Now in your case you have submitted sal slip and bank stmt, by hsmp guidelines this is ok. As long as 2 piece of evidence match each other it is fine. But you have to explicitly say in your cover letter that only net pay after tax is what will match b/w your sal slip and bank stmt, otherwise CW may get confused, I mean there is a chance he may use net pay to calaulate prev earnings instaead of gross pay. ALso to stregnthen your case letter from employer is always good. Also if your bank statement do not show from here the salary came, that is your company name in each of salary transaction then you need to get letter from back for that reason, also letter from employer. My case was like that, I did so and got approval.

[pantaiema]

Poeple can not claim income which is not declared on wage slip
- U can not claim income which is not declared as part of taxable income in your pay slip. Let me give example, most people inthe Uk who are under permanent employment (not contract) get pension contribution each month from their company. This income is declared on pay slip but it is not taxable. Therefore, they can not use this figure as part of Gross earning.

Hi All,
Thought I will post this query up front rather than in a thread. My Apologies if this is repeated.


I have applied for HSMP in oct from India. I have a question regarding Previous earnings. I come under salaried employees category.

My claim period is Sep '06 to Aug '07. I submitted foll docs:
-ITR1 which in India is for period Apr06 to Mar 06.
-copy of latest Form 16 .
-12 Attested payslips for full claim period
-ITR1 does not cover my claim period hence I claimed Exceptional Consideration.
I submitted Bank Statements for full claimed period.

The ITR form only covers 7 months of my claim period i.e. Sep06 to Mar07. It does not cover last 5 months. Also for each month of claim period the net salary amount on payslip matches with bank statement for each month. Hence Net salary is corroborating.

Now to corroborate Gross salary I took total of gross salary from payslip of each month of claim period. So the question is, does this figure (i.e. addition of monthly gross amount from all 12 payslips) have to match with Gross Salary figure on ITR1 from? In my case it does not. I thought it was OK considering that this is not the ITR1 form for my claimed period ,and is for financial year period, so it will never match. But now this question is worrying me.Others please let me know how you handled this in your application.


Another thing is, in my case salary for each month varies due to a performace linked incentive during each month. This incentive amount is clearly mentioned on salary slip. So matching annual gross salary for current year and previous year will never give same figure.
Hence even if they compare gross salary on form16(of previous year) that I submitted with gross salary total from payslips for the claimed period, these two figures are not same due to above reason(i.e. variable component in salary stack). Will this cause problem in my case? i.e. Caseworker trying to tally total of gross sal from payslip with gross sal figure on form16?

Please let me know how you handled this?

Thanks and Regards,
Andy

[apply4hsmp]

Poeple can not claim income which is not declared on wage slip
- U can not claim income which is not declared as part of taxable income in your pay slip. Let me give example, most people inthe Uk who are under permanent employment (not contract) get pension contribution each month from their company. This income is declared on pay slip but it is not taxable. Therefore, they can not use this figure as part of Gross earning.

I think you got it wrong here pataiema, all earnings shown in payslip count towards gross earnings. It is a separate issue how ur country's taxation deals with the benefits like pension etc.

If it is declared in payslip, it is part of earnings. After all, can you get pension accrued without working for a particular month ?

So pension is part of (gross) earning.

[VictoriaS]

pantaiema is absolutely correct - pension contributions WILL NOT be counted as part of taxable income, therefore will not be considered.

Victoria

[pantaiema]

apply4hsmp
I do not know about the tax system in the country U r refering to. I agree with your point that every country's taxation deals with the benefits like pension etc could be different

However, hereI am refereing to people who are working int the UK. What I know for sure. Like also what have been echoed by Victoria, If u r working int the UK, U can not use the pension contribution from employer as part of gross earning.

Whether other non taxable income declared on pay slip (other than employer's pension contribution) could be counted as part of earning. I do not know to be honest.

I think we still need to learn from people who are actually going into this route. Any people who want to share their experience will be greatly apreciated ??

Poeple can not claim income which is not declared on wage slip
- U can not claim income which is not declared as part of taxable income in your pay slip. Let me give example, most people inthe Uk who are under permanent employment (not contract) get pension contribution each month from their company. This income is declared on pay slip but it is not taxable. Therefore, they can not use this figure as part of Gross earning.

I think you got it wrong here pataiema, all earnings shown in payslip count towards gross earnings. It is a separate issue how ur country's taxation deals with the benefits like pension etc.

If it is declared in payslip, it is part of earnings. After all, can you get pension accrued without working for a particular month ?

So pension is part of (gross) earning.

[mkal08]

I can understand If pantaiema does not know the system in india.

And i also agree with hsmphsmp and apply4hsmp.
As I understand from the hsmp guidance,all allowances,ONLY IF DECLARED,on the wage slips ,would then be considered as a part of your income that you are requesting against the points.

I would apply the same worksheet as the one used by " hsmphsmp".

Cheers

[pantaiema]

mkal08
I do not know the tax system in india as I did not work in that country.

-U r right that in order to be considered as part of earning all have to beDECLARED,on the wage slips.
- However it does not say that all part of earnings which are decared on the pay could be considered as part of erning. I have given example with Employer's pension Contribution this income is deceled on wage slip but can not be used as part of HSMP earning. I do not know which other allowance can be taken as part of aerning to be honest.

I can understand If pantaiema does not know the system in india.

And i also agree with hsmphsmp and apply4hsmp.
As I understand from the hsmp guidance,all allowances,ONLY IF DECLARED,on the wage slips ,would then be considered as a part of your income that you are requesting against the points.

I would apply the same worksheet as the one used by " hsmphsmp".

Cheers