Query about benefits and allowances

[easyguy]

Hi,

I'm due for Tier 1 general extension by the end of the year and I have to show earnings of over £35k.

Currently with just my basic salary I do not meet the criteria. However I have a fully maintained company car with full fuel allowance (including personal use) and I get taxed on it..roughly around £3-4k. So if I include this benefit i.e. basic salary + car benefit I meet the criteria.

I know company car benefit is considered as part of salary package/renumeration. But is this counted towards previous earnings required for visa? If yes how can I prove this? Currently I have a K376 tax code which deducts the car and fuel allowance from my salary. But I don't have anything that clearly shows this figure. I'm not sure when I'm going to receive the p11d or something similar from HMRC.

Can anyone please give any suggestions or advice on this?

[shahjee11]

Hi,

I'm due for Tier 1 general extension by the end of the year and I have to show earnings of over £35k.

Currently with just my basic salary I do not meet the criteria. However I have a fully maintained company car with full fuel allowance (including personal use) and I get taxed on it..roughly around £3-4k. So if I include this benefit i.e. basic salary + car benefit I meet the criteria.

I know company car benefit is considered as part of salary package/renumeration. But is this counted towards previous earnings required for visa? If yes how can I prove this? Currently I have a K376 tax code which deducts the car and fuel allowance from my salary. But I don't have anything that clearly shows this figure. I'm not sure when I'm going to receive the p11d or something similar from HMRC.

Can anyone please give any suggestions or advice on this?

Car allowance is counted towards previous earnings as long as it is a part of your contractual remuneration package. See section 101, 103 and 104 of the Tier 1 G Policy Guidance.

If this benefit does not appear on your payslip when it is paid then you should get a P9D (considering the total annual benefit below £8500 in your case) through your employer and the amount stated in it should match with the total amount paid to you in your bank account.

If a P9D is not available by the time you apply for the visa, then a letter from the employer covering all those payments paid alongwith your bank account statement should suffice the requirement.

[easyguy]

Shahjee, thanks for your reply. It is appreciated very much.

I don't actually get any additional payment in my bank account or anything mentioned on my payslip as it is not a mileage allowance. Instead I have a K376 tax code on my pay slip and get taxed as if I'm earning an extra £4k on top of my basic salary as my employer has declared to HMRC about this benefit.

After I got the car, I received a letter from the tax office saying that this car benefit is also taxable income and my new tax code is K376 which is based on the cash value of car + fuel evaluated by HRMC including co2 emissions.

As of now I haven't received any P9D or P11D from HMRC. I'm not sure when I'm going to get it. But at this stage I don't have any documents expect the contract letter from my employer and the new Tax Code letter from HMRC explaining all this. So can I still show these documents including the P9D / P11D from the last year? Nothing has changed since last year about the car benefit, only thing that changed is my basic pay.

Many thanks for your advice.

[shahjee11]

I dont think an old P9d will work for you as HO may not accept that. Instead I will ask my employer to confirm in writing whatever benefit you have received in the period you are going to claim points for. You can then further support this with your tax code documents from HMRC. I think this will do but wait for the Gurus to answer as well.

[Anj1913]

I'm in same boat and want to know if I can claim taxable benefits as prvouse earning? I have my p11D that shows the amount I will be paying the tax, addtional to my annual salary. So if my salary is “X” and I’m paying tax on “Y” aditionaly. Its mean my taxable pay is X+Y. Is it correct?
Any further information on this or if some one hase done it in past please reply.
Regards