Annual income?

chocaholic110

This is possibly a stupid question but OH is a lorry driver and receives extra money for nights away from home. This is not taxed so doesn't appear on his P60. Therefore his annual wage on his P60 appears as £22,500 but the total gross income on his final payslip of 2006-07 financial year shows gross yearly earnings as £26,500. Which of these is the figure we would use for a mortgage application please?

chocaholic110

Does anyone have any idea at all please?

dealornodeal_3

I believe its annual taxed income!

Wyndham

The question is usually phrased along the lines of 'income without any overtime or bonus payments' i.e. basic pay, so I think you will need to declare the £22,500 as it sounds like the other bit is extra. Could he lose it if he chose to work only days (I'm not sure if that is a stupid question, please forgive me if it is)? If so, then it's not part of his basic package and can't be used.

I'm also a bit confused as to why he's not taxed on them.....?

chocaholic110

Thanks. I believe he's not taxed on that a sit is a subsidy(sp?) or something along those lines to pay for costs incurred by having to stay out - sort of a living allowance or something - I don't really know.

Also then, part of his pay counts as overtime even though he always does the same number of hours. Around 12 hours a week appear on his payslip at a higher rate and are listed as overtime, even though he has worked this number of hours for years.

How would we calculate an annual income? Sorry for being a pest!

Wyndham

chocaholic110 wrote: »

Also then, part of his pay counts as overtime even though he always does the same number of hours. Around 12 hours a week appear on his payslip at a higher rate and are listed as overtime, even though he has worked this number of hours for years.

How would we calculate an annual income? Sorry for being a pest!

Eek! I think this could be tricky. I'm not best qualified to comment (and there are people on this forum who are) but it will probably depend on the lender. It may well come down to what his contract actually says....

chocaholic110

Thanks, will have to dig out his contract but if anyone else can offer advice in the meantime..?

MortgageMamma

MOst mortgage providers would ask you to breakdown his income for mortgage purposes as follows

Guaranteed annual income - basic salary
Guaranteed Overtime - overtime which is guaranteed each month
Regular Overtime - you have to be able to proove on payslips
Guaranteed Bonus - usually guaranteed if received same amount for 3-5 years
Regular Bonus - discretionary bonuses
Any other income - e,g, state benefits, investment income
Benefits in kind i.e. car allowance, pension, life assurance

Your partners non tax deductible pay sounds like what a lender would class as shift allowance - I'm really not sure what the tax situation should be on that

If you are looking for a mortgage the best thing to do is speak to a reputable and experienced broker. They will have relationships with the lenders you are looking to approach and could find out in advance how the specific lender will take your partners additional pay.

MM

herbiesjp

Agree with MM

There are however lenders that will look at a P60 figure and look to use those figures - so if the P60 includes that extra money, you will be able to use it with some lenders

HTH