Is the salary - GROSS or NET?

[hsmp2tier]

Hi Everyone!

I am planning to submit my application this week just wanted to confirm the salary its asking on page 37 (in Tier 1 application form) under section L9 is it gross or net?

Appreciate your help!!!

Thanks

[cheshiregoan]

Hi Everyone!

I am planning to submit my application this week just wanted to confirm the salary its asking on page 37 (in Tier 1 application form) under section L9 is it gross or net?

Appreciate your help!!!

Thanks

Use gross salary, i.e. before tax

[hsmp2tier]

Hi Everyone!

I am planning to submit my application this week just wanted to confirm the salary its asking on page 37 (in Tier 1 application form) under section L9 is it gross or net?

Appreciate your help!!!

Thanks

Use gross salary, i.e. before tax

Thank you for your reply! Cheshire.. much appreciated!!!

[push]

Gross before all deductions as shown on your pay slips but excluding any reimbursements of expenses incurred on behalf of the employer

[MITM2]

Hi Push,

-----------------------------------------------------------------
Gross before all deductions as shown on your pay slips but excluding any reimbursements of expenses incurred on behalf of the employer
------------------------------------------------------------------

I work for an Umbrella company at an hourly rate and am paid weekly.
On receiving my earnings [total hours worked x hourly rate] at the end of each week, the Umbrella company deducts my transport expenses and Employers Tax. What is left is then recorded on my payslip as the Gross Payment.

For example, in a week I worked 8 hours per day at 12.5 pounds per hour, I earn 500 pounds at the end of the week. Having spent 100 pounds on my travel card at the beginning of that week, the Umbrella company removes this 100 pounds from the 500 pounds and also remove some of the money as ' Employer Tax' (say 40 pounds for example) in addition to some money for their own administrative charges (say 30 pounds). The remaining 330 pounds is what is entered as 'Gross Payment' on my payslip.

Are you saying that it's only the 330 pounds that HO will recognise as my Gross Earning for that week? Despite the fact that I actually 'earned' 500 pounds?
Also, the Umbrella company is NOT contributing anything nor are my 'Employer' in the true sense...they actually pay the 'Employer Tax' from my 500 pounds eaning and also take some money for each payroll they process each week.

Could you please advise?

Thank you.

MITM2

[nksg]

Thats corrct any expenses paid is not part of your Gross salary so HO wont take that into account. There is a recent post where an application was rejected for the same reason.

Hi Push,

-----------------------------------------------------------------
Gross before all deductions as shown on your pay slips but excluding any reimbursements of expenses incurred on behalf of the employer
------------------------------------------------------------------

I work for an Umbrella company at an hourly rate and am paid weekly.
On receiving my earnings [total hours worked x hourly rate] at the end of each week, the Umbrella company deducts my transport expenses and Employers Tax. What is left is then recorded on my payslip as the Gross Payment.

For example, in a week I worked 8 hours per day at 12.5 pounds per hour, I earn 500 pounds at the end of the week. Having spent 100 pounds on my travel card at the beginning of that week, the Umbrella company removes this 100 pounds from the 500 pounds and also remove some of the money as ' Employer Tax' (say 40 pounds for example) in addition to some money for their own administrative charges (say 30 pounds). The remaining 330 pounds is what is entered as 'Gross Payment' on my payslip.

Are you saying that it's only the 330 pounds that HO will recognise as my Gross Earning for that week? Despite the fact that I actually 'earned' 500 pounds?
Also, the Umbrella company is NOT contributing anything nor are my 'Employer' in the true sense...they actually pay the 'Employer Tax' from my 500 pounds eaning and also take some money for each payroll they process each week.

Could you please advise?

Thank you.

MITM2

[cheshiregoan]

Hi Push,

-----------------------------------------------------------------
Gross before all deductions as shown on your pay slips but excluding any reimbursements of expenses incurred on behalf of the employer
------------------------------------------------------------------

I work for an Umbrella company at an hourly rate and am paid weekly.
On receiving my earnings [total hours worked x hourly rate] at the end of each week, the Umbrella company deducts my transport expenses and Employers Tax. What is left is then recorded on my payslip as the Gross Payment.

For example, in a week I worked 8 hours per day at 12.5 pounds per hour, I earn 500 pounds at the end of the week. Having spent 100 pounds on my travel card at the beginning of that week, the Umbrella company removes this 100 pounds from the 500 pounds and also remove some of the money as ' Employer Tax' (say 40 pounds for example) in addition to some money for their own administrative charges (say 30 pounds). The remaining 330 pounds is what is entered as 'Gross Payment' on my payslip.

Are you saying that it's only the 330 pounds that HO will recognise as my Gross Earning for that week? Despite the fact that I actually 'earned' 500 pounds?
Also, the Umbrella company is NOT contributing anything nor are my 'Employer' in the true sense...they actually pay the 'Employer Tax' from my 500 pounds eaning and also take some money for each payroll they process each week.

Could you please advise?

Thank you.

MITM2

Unfortunately that is a trap most people on HSMP fall into while applying. Any expenses or pre-tax deductions are not counted towards your Gross Pay. For example, if you were making contributions towards an employers pension scheme, any contribution that is deducted before tax also does not count towards your Gross Pay.

[push]

Gross Salary means what you would have earned as if you were working in a regime which did not have any income tax/ NI deductions etc. The Gross amount should reflect on the pay slips and so does the net amount (for corroboration with amounts deposited in Bank).

In your case if the Pay slip shows Gross amount and then deductions are shown (as deductions and not as some costs/expenses etc.) then you can use the Gross amount.

Re other posts - You can claim Gross amount even if from that gross amount a deduction is made to contribute towards your pension fund (not the employer's contribution). One can not include reimbursements for the expenses incurred on behalf of the company like car/train fare; hotel room tariff etc.

[gman5]

Hi i am in a similar situation where I work for an umbrella company.

the summary of my pay history is
monthly income- 2k
tax credits(employers NI cont, holiday allowance, etc)-0.3k

this makes my artificial gross see much lower. (appx 1.7K)

What i have done is...

submitted a letter from my umbrella co. saying (instead of payslips)...
gross paid-2k
tax credits claimed- 0.3k
Net pay (corresponding in my bank a/c)

Application submitted on 5th Aug. No response yet.

Heartbeat due to stop anytime

[mah]

Gross Salary means what you would have earned as if you were working in a regime which did not have any income tax/ NI deductions etc. The Gross amount should reflect on the pay slips and so does the net amount (for corroboration with amounts deposited in Bank).

In your case if the Pay slip shows Gross amount and then deductions are shown (as deductions and not as some costs/expenses etc.) then you can use the Gross amount.

Re other posts - You can claim Gross amount even if from that gross amount a deduction is made to contribute towards your pension fund (not the employer's contribution). One can not include reimbursements for the expenses incurred on behalf of the company like car/train fare; hotel room tariff etc.

Dear Push,
In my payslips, there is one section as Salary: £XXXX
One Part as dduction including (Tax paid £ XXX, EE NIC £ XXX, Pension £XX, Dental £XX)
There is another part as Taxable Benefit which is £ XX)
There is Total Gross Pay, Total deduction and NET PAY.
So can I refer to the Gross Pay as my income to ask for points?

Those who ask a letter from the employer, should it contain both the gross pay and the net amount paid to the bank in order to corroborate with the amounts in the bank statements?

Thanks,

mah