shirish1975 wrote:
Basic (Taxable) =X
London Allowance (Taxable)=Y
Non Taxable Allowance=Z
Total Gross = X + Y+ Z (shows on payslip)
Total Taxable Gross= X+Y
So what amount is considered for my Tier1 extension application. Is it Total Gross or the Total Taxable Gross amount X no of months.
Please take a look at the T1G guidance on previous earnings (Page 20):
http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf
So long as the allowances you have mentioned (irrespective of whether they are taxable or not) do not fall under the points listed under 102, then you should be able to include them as part of your previous earnings.
101. Earnings may include, among other things:
• salaries (includes full-time, part-time, and bonuses);
• earnings from self-employment;
• earnings from business activities;
• statutory and contractual maternity pay and statutory and contractual adoption pay;
• allowances (such as accommodation, schooling or car allowances) that form part of an applicant’s remuneration package;
• dividends paid by a company in which the applicant is active in the day-to-day management, or where the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, where this forms part of the applicant’s business; and
• payment in lieu of notice (a payment made instead of requiring an employee to work the normal period of notice when leaving a job).
102. Unearned sources of income that we will not consider as previous earnings include:
• expenses (such as accommodation, schooling or car allowances) that reimburse the applicant for money he/she has previously spent;
• dividends, unless paid by a company in which the applicant is active in the day-today management, or unless the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, unless this forms part of the applicant’s business;
• interest on savings and investments;
• funds that were inherited;
• money paid to the applicant as a pension;
• expenses where the payment reimburses the applicant for money he/she has previously spent;
• redundancy payment;
• sponsorship for periods of study;
• state benefits; or
• prize money or competition winnings, other than where they are directly related to the applicant’s main profession or occupation.
