Earnings Query

[nks]

Hello Guys,

This is the repeat of my earlier post but more straight forward and simplified to attract some hits. My 'Payments' section of payslip shows (example ofcourse

Total Gross Pay : 4000 GBP
Total Taxable Pay : 3780 GBP

This is because some part of my gross pay funds benefits, which are non-taxable (like pension, insurance etc.)

I am not able to find any clear guidelines in this respect on UKBA portal but most posts on this forum suggests only taxable salary can be used for earnings.

Can I use 'Total Gross Pay' or it could only be 'Total Taxable Pay'?

Many thanks,
nks

[Lucapooka]

It would help if you indicated what the 220 deduction is for.

[nks]

It would help if you indicated what the 220 deduction is for.

220 deductions are for funding Pension contributions, Dental insurance etc etc. I think they are all non-taxable. So here is how my payslip looks like :

"Payments"
Basic Pay : 3500
Benefits Funding : 500
================
Total Gross : 4000
Total Taxable : 3780
================

"Deductions"
Tax : x
NI : y
Benefit Deductions : z
================
Total Deductions : x+y+z
================

[Lucapooka]

You need to declare your total taxable. Your situation sounds similar to salary sacrifice (if it is not actually that). Generally, if you pay tax on a benefit (car, accomodation etc) you can include it; if you don´t pay tax on a benefit you can´t include it. It appears that some of you benefits are taxed and some aren´t.

[nks]

You need to declare your total taxable. Your situation sounds similar to salary sacrifice (if it is not actually that). Generally, if you pay tax on a benefit (car, accomodation etc) you can include it; if you don´t pay tax on a benefit you can´t include it. It appears that some of you benefits are taxed and some aren´t.

Thank you for your reply. It seems Pension contributions are not taxable with some consideration as I found here at HMRC site : http://www.hmrc.gov.uk/pensionschemes/f ... occs.htm#i

Quote : "Contributions made by an employer to an approved personal pension scheme do not count as taxable pay of the employee concerned. "

Do you still think this can't be counted? Any clear guidelines from UKBA on this?

Thanks,
nks

[Lucapooka]

You need to declare your total taxable.

[nks]

You need to declare your total taxable.

Thank you. Would be good to have more comments from other members.

Is this not like when I declared my 'Total Gross' back home to get initial Tier-1, which included contributions for PF, Pension etc, which are non-taxable and still got points for 'Total Gross'

This is critical and will have bearing on my approach to extension so request seniors to comment. UKBA guidelines are not at all clear on it.

Thanks,
nks