Base Salary - Gross Salary Help

[syd01]

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

[tvn_ramesh]

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

As per HO Guidance..

Money paid to the applicant as a Pension is not counted as earnings..

please refer page 22/23 of 44 Paragraph 122..
http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf


122. Unearned sources of income that wewill 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-to-day 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;•
Tier 1 (General) Policy Guidance page 23 of 44
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.

[syd01]

Hello

thank you for your reply. I was also confused with this . as i am not recieving pension but -130 is my contribution to the conpany pension scheme. so it is deducted from my pay before tax. like all the company pension schemes it is deducted before the tax. But it is still going from my pay please advise

Regards

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

As per HO Guidance..

Money paid to the applicant as a Pension is not counted as earnings..

please refer page 22/23 of 44 Paragraph 122..
http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf


122. Unearned sources of income that wewill 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-to-day 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;•
Tier 1 (General) Policy Guidance page 23 of 44
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.

[tvn_ramesh]

Hello

thank you for your reply. I was also confused with this . as i am not recieving pension but -130 is my contribution to the conpany pension scheme. so it is deducted from my pay before tax. like all the company pension schemes it is deducted before the tax. But it is still going from my pay please advise

Regards

Yes, i mean your pension amount is not counted in the earnings..

The case worker will take your GROSS Salary for earnings points..

I also had Salary sacrifice at the time of applying for Tier1(G) and i could use only my GROSS salary..

If you can dig through the messages, you can find a long discussion about pension thing.. will ping you if i find it..

GOodluck..

[vks]

Hello

thank you for your reply. I was also confused with this . as i am not recieving pension but -130 is my contribution to the conpany pension scheme. so it is deducted from my pay before tax. like all the company pension schemes it is deducted before the tax. But it is still going from my pay please advise

Regards

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

As per HO Guidance..

Money paid to the applicant as a Pension is not counted as earnings..

please refer page 22/23 of 44 Paragraph 122..
http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf


122. Unearned sources of income that wewill 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-to-day 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;•
Tier 1 (General) Policy Guidance page 23 of 44
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.

Might be a default pension scheme for the individuals in that company. Check with your company accountant

[tvn_ramesh]

Here we go.. i found the link..

http://www.immigrationboards.com/viewtopic.php?t=46275

you can go through the discusion and decide for yourselves.. but at that time i did not know that HO Guidance even says that pension amount can not be counted towards earnings..

Goodluck..

[mahdi]

helllo,

when you say the gross salary do you mean after tax or before tax? so if someones earns 21000 before tax will he be eligible to apply?

[tvn_ramesh]

helllo,

when you say the gross salary do you mean after tax or before tax? so if someones earns 21000 before tax will he be eligible to apply?

GROSS SALARY is before Taxes..

NET SALARY is after Taxes..

Please check the PBS Calculator for the eligibility points you earn..

[mahdi]

thank you very much

[syd01]

Thanks Ramesh

the discusion is helpfull but a bit confusing. but it did made few things clear. i was hoping that my salary beofre tax meant over all salry on my pay slip as base salaryt with out my contribution to pension and car park scheme

thanks

Here we go.. i found the link..

http://www.immigrationboards.com/viewtopic.php?t=46275

you can go through the discusion and decide for yourselves.. but at that time i did not know that HO Guidance even says that pension amount can not be counted towards earnings..

Goodluck..

[tvn_ramesh]

Thanks Ramesh

the discusion is helpfull but a bit confusing. but it did made few things clear. i was hoping that my salary beofre tax meant over all salry on my pay slip as base salaryt with out my contribution to pension and car park scheme

thanks

Here we go.. i found the link..

http://www.immigrationboards.com/viewtopic.php?t=46275

you can go through the discusion and decide for yourselves.. but at that time i did not know that HO Guidance even says that pension amount can not be counted towards earnings..

Goodluck..

Dear Syd01..

All these discussions are based on our experience or what we interpret from the Guidance.. if you wnat to get a better answer or confirmation.. i would advice you to send a email to HO with your case clearly and check what they come back with..

This will you will be in a better state then being in confused state.. i applied for my tier1 nearly a year ago.. Goodluck

[mahdi]

I do find the discussion very useful as well.

Can you please give me the Home Office email address to which should I address my questions?

How long does it take usually to get a reply from the Home Office email?

[syd01]

Thanks ramesh i guess that would be a good thing to do do you happen to know the email address i emailed on one which i found frm website but it came back as an automatic msg saying teh same thing as a website link.

regards

Thanks Ramesh

the discusion is helpfull but a bit confusing. but it did made few things clear. i was hoping that my salary beofre tax meant over all salry on my pay slip as base salaryt with out my contribution to pension and car park scheme

thanks

Here we go.. i found the link..

http://www.immigrationboards.com/viewtopic.php?t=46275

you can go through the discusion and decide for yourselves.. but at that time i did not know that HO Guidance even says that pension amount can not be counted towards earnings..

Goodluck..

Dear Syd01..

All these discussions are based on our experience or what we interpret from the Guidance.. if you wnat to get a better answer or confirmation.. i would advice you to send a email to HO with your case clearly and check what they come back with..

This will you will be in a better state then being in confused state.. i applied for my tier1 nearly a year ago.. Goodluck

[tvn_ramesh]

Email: UKBApublicenquiries@ukba.gsi.gov.uk

there shd be one more.. will come back on it..

[tvn_ramesh]

Also please see Chetan's advice in the below link if you can get a letter from employer shd solve your case

http://www.immigrationboards.com/viewto ... 280#320280

[manojk005]

Yes you can definitely count USS Benefit in your previous earning. I had same situation and awarded full point for previous earning with USS pension benefit. However, take a letter from your Payroll explaining Salary and USS Pension benefit. ask them to cleary write that it is your earning from your salary.

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

[aruni4470]

Yes you can definitely count USS Benefit in your previous earning. I had same situation and awarded full point for previous earning with USS pension benefit. However, take a letter from your Payroll explaining Salary and USS Pension benefit. ask them to cleary write that it is your earning from your salary.

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

Out of curiosity..
If you did not consider your USS benefit, how many points did you get for previous earnings and how many points after including them?

[manojk005]

Yes you can definitely count USS Benefit in your previous earning. I had same situation and awarded full point for previous earning with USS pension benefit. However, take a letter from your Payroll explaining Salary and USS Pension benefit. ask them to cleary write that it is your earning from your salary.

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

Out of curiosity..
If you did not consider your USS benefit, how many points did you get for previous earnings and how many points after including them?

Without including USS benefit, It would have been only 5 points resulting in total points less than 95 points. However, with USS benefit in previous earning, It is 15 points, reaching 95 points. Caseworker awarded full claimed point, i.e. 15.

[manojk005]

Hello

My total earnigs for last 12 months are 19460 + 700 (perforpance related pay) = £ 20160

my confusion is the pay slips. the criteria says gross salary but my pay slip shows the following. Does home offcie calculates the base salary i.e beofre my contributions to pension etc. or am i in trouble plz help

Base Salary = 1621.67
USS Benefit (contribution of pension) = -130.98
Adjusted Pay = 1490.69 (beofre tax deductions)
Net Pay £ = 1206.13

This is not any benefit paid by anyone else. It is simply your hard earned money, which you are saving for future. It is your earning so you must claim if you want to. You can very well spend you earning whereever and whenever you want to.

No where in Tier 1 guidance say that you must spend all your earning then only it will be considered! or it does not say that only earning for which Income tax and NI are paid will be considered as earnings.

[geriatrix]

It seems that USS Benefit (employee contribution from his salary to pension fund) is similar to EPF contribution in India (employee contribution from his salary towards provident fund).

And if it is indeed so, then just as employee's contribution to EPF is very much part of "gross earnings", USS Benefit contribution is also an integral part of "gross earnings".

IMHO ....


regards

[aruni4470]

or it does not say that only earning for which Income tax and NI are paid will be considered as earnings.

What do you understand from the below point? As far as I understand,it states that if the earnings were made in a country with tax system, they will only consider gross salary that is taxable and if there is no tax system then they will consider all the earnings.


114. If an applicant is in salaried employment, we will assess the applicant’s gross salary before tax. This includes self-employed applicants who draw a salary from their businesses. If the applicant earned the money in a country with no tax system, we will consider his/her total earnings for the period.

[geriatrix]

IMHO, "gross salary before tax" is different from "gross salary that is taxable". e.g. - non-taxable allowances that are part of gross earnings (house rent allowance, medical allowance, transport allowance etc.).


regards

[manojk005]

or it does not say that only earning for which Income tax and NI are paid will be considered as earnings.

What do you understand from the below point? As far as I understand,it states that if the earnings were made in a country with tax system, they will only consider gross salary that is taxable and if there is no tax system then they will consider all the earnings.


114. If an applicant is in salaried employment, we will assess the applicant’s gross salary before tax. This includes self-employed applicants who draw a salary from their businesses. If the applicant earned the money in a country with no tax system, we will consider his/her total earnings for the period.

As per UKBA site at http://www.ukba.homeoffice.gov.uk/glossary?letter=G
#
Gross and net pay

Gross pay is the amount your employer pays you before tax and other official deductions have been made. Net pay is the amount you actually receive after official deductions have been made.

If there is still doubt then contact UKBA.

I contacted UKBA and they said salary before any deductions including pension is counted in Gross earning. And I have seen whatever they said e-mail, they followed while assessing previous earning in my case. If you have doubt then you can also contact UKBA. I have already posted that e-mail chain on this board.

This concept of pension deduction/benefit is simply equivalent to EPF in india.

I am writing this because I have seen many posts strongly opposing inclusion of pension deduction. This is simply wrong.

[aruni4470]

or it does not say that only earning for which Income tax and NI are paid will be considered as earnings.

What do you understand from the below point? As far as I understand,it states that if the earnings were made in a country with tax system, they will only consider gross salary that is taxable and if there is no tax system then they will consider all the earnings.


114. If an applicant is in salaried employment, we will assess the applicant’s gross salary before tax. This includes self-employed applicants who draw a salary from their businesses. If the applicant earned the money in a country with no tax system, we will consider his/her total earnings for the period.

As per UKBA site at http://www.ukba.homeoffice.gov.uk/glossary?letter=G
#
Gross and net pay

Gross pay is the amount your employer pays you before tax and other official deductions have been made. Net pay is the amount you actually receive after official deductions have been made.

If there is still doubt then contact UKBA.

I contacted UKBA and they said salary before any deductions including pension is counted in Gross earning. And I have seen whatever they said e-mail, they followed while assessing previous earning in my case. If you have doubt then you can also contact UKBA. I have already posted that e-mail chain on this board.

This concept of pension deduction/benefit is simply equivalent to EPF in india.

I am writing this because I have seen many posts strongly opposing inclusion of pension deduction. This is simply wrong.

I am not opposing that the pension contribution can be taken into account. I am trying to understand the remarks made by you in your previous post and trying to make myself clear. If that irritates you, accept my apologies and I can always contact UKBA if in doubt but the whole point in discussing here is to share and get things clear.