Annualised commission calculation

[crispy]

Hello board,

My wife has a base pay of £15,400 and the rest of her earnings come through monthly commission.

We want to be sure that this commission will help her over the line after annualising.

The guidance (Appendix fm 1.7 - August 2017) says that a sort of mean average is calculated:

The income from commission based pay that can be added to the salaried employment
= (total commission earned over the last 6 months, divided by 6) multiplied by 12
= ((500+1000+400+200+250+800) ÷ 6) x 12
= (3150÷ 6) x 12
= £6,300

But people on the boards also describe caseworkers taking the lowest month and multiplying it by 12.

So which is it? Can anyone advise?

Thanks in advance.

[crispy]

Aha. I've just found the following in the guidance.

Where the person is in salaried employment – they must have been paid throughout
the period of 6 months prior to the date of application at a level of gross annual salary
which equals or exceeds the level relied upon in the application. Therefore the figure
used towards the requirement will be the lowest level of annual salary received during
the 6 month period.

That's the answer to this question isn't it? My wife is presumably considered to be in salaried employment (since she earns a base pay) so the rule of taking the lowest month and multiplying by 12 will be applied.

Am I right?

[crispy]

Hi again folks,

No worries about radio silence on the previous question. I have gone over the guidance carefully and am now satisfied that the "lowest month" rule applies for us.

Additional question. The application form itself asks for the applicant's annual income. It does not mention a calculation for commission-based pay. Should we conduct the calculation before entering this figure or do we put the in-reality total annual income and let the caseworker do the calculation?

Thanks.
The Crisp One.