Urgent: Second opinion required on Finance question

[Neil29]

Hi All,

I have been following this forum for some time in view of preparation of my FLR(M) application. While most of the documents and sections in the form are clear, I am confused beyond explanation on the Finance section with no clarify found in the FM 1.7 either . I am currently on Tier 2 ICT and my wife/sponsor is a British citizen; and I am relying only on my salary for the purposes of this application.

I earned a gross annual salary of £27,500 for 2 months and a gross annual salary of £30,000 in the last 4 months with the same employer. Minimum financial requirement to meet is £18,600. Can someone PLEASE advise what should I answer for the below questions:

Should I select Cat A or Cat B?
7.3 Current annual salary
7.3.A What is your annual income from your current employment before tax (£)?
7.3.A You and your sponsor’s total combined income from salaried employment?

I also came across a term 'income relied upon in the application' on this forum and FM 1.7. I undersand this will be £27,500 (as per 5.1.7. Case studies – Category A; Annex FM Section FM 1.7) but where exactly do I enter this information on the form as in most sections, the form asks for current salary which is £30,000??

[Rayking]

That should be cat A
1.Your current income will be 30000
2.as above or current
3.since you're relying on your income,put yours there.
You'll then explain it in the space for additional information, attaching evidence of the salary increment.
Just answer what's on the form and you can explain whatever you think might not be clear to the eco.

[Neil29]

Thank you Rayking for your response. So basically I just enter my current salary in all the fields asked?

If so, then probably I am not compliant with the following statement from FM 1.7; 5.1.4: 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.

Should I just enter £27,500 in all the sections?

[Rayking]

No,that's not what they're saying,first you need to know if you're in salaried or non salaried employment.
If you get fixed salary's,that is salaried employment, if you're paid per hour, that's non salaried.
The calculation defers depending on the employment.
It's just the calculation that will be different, you can't tell them 27500 and he sees the total is about 30000,that can give the eco the impression you're hiding something.
You should be fine as long as you get minimum of 1550 if it's salaried employment.
As as a matter of fact your calculation must be what you've got in the last 6 month,not what's stated in your contract.i mean your annual income should be what you've earned in the last 6 months. Hope it's clear to you?

[Neil29]

Thanks again Rayking for your prompt reply. You have hit the spot of my confusion when you mention my annual income should be what I've earned in the last 6 months. Would you be so kind to explain further based on the below example which I can then apply on my own case?

Salary received (after tax):
Feb 14- £2000
Mar 14- £2000
Gross annual for above 2 months £27,500

Apr14- £2500
May14- £2500
Jun14- £2500
Jul14- £2500
Gross annual for above 4 months £30,500

Total salary received for 6 months after tax = 14000

In the above scenario, how should I respond to the below questions:

7.3 Current annual salary
7.3.A What is your annual income from your current employment before tax (£)?
7.3.A You and your sponsor’s total combined income from salaried employment?

Hope this is not too confusing and a million thanks for your help!

[Rayking]

Ok,it's not clear to me if it's salary or non salary BT will explain the 2.
For salary employment, your calculation will be
The lowest income out of 6 month,that will be 2000×12=24000
Annual income=24000
For salaried employment.
For non salaried, that is total income in 6 months
2000×2+2500×4=14000÷6×12=28000
You can't have annual income under 2 months,remember one of the requirements is that you must have been in the employment for @ least 6 months?

Your annual salary is 24000 if you get salary or 28000 nonsalaried.
Your income before tax is as above,if figures given are gross income.
If you're relying only on this income, then it's as stated.
*note it should be your income b4 tax.
*the letter you get from your employer MUST state for important points, it is as important as the figures,just saying if you don't know, otherwise you can get delayed for that.