Help please

bozbear

Hi

We have recently had an AIP from a mortgage lender. They have sent out the employer references and we have now encountered a problem with my partners employer. My partner is a Lorry Driver out all week his wages are made up of basic and night out money both of which are guranteed. his employer has been sent the reference form and has refused to include the night out money as part of his wages even though it clearly is. It is shown on his wage slips. The problem is that his wages without his night outs is £22000 and with is £29000. His night out money is tax free but does appear on his wages total each week. The wages clerk at his work says she cant include this on his reference, the mortgage broker says she can as it is money recieved each week.

Who is right as this will affect our house situation?

Thanks

Scott

Is it guaranteed income? If it's not, I believe his employer may be correct.

david29dpo

my farther was a lorry driver and as the night out money is not strictly guaranteed, cannot be included.

wisbech_lad

"night out" money is (1) not guaranteed, your partner's firm may switch him to a different pattern (my uncle was a lorry driver, and for a few years did a very short local haul, within a factory grounds basically, so he could be home every night)

and (2) it is tax free because the IR, the employer, and the employee all agree that it is 100% expenses of your partner needing to nightstop. Sure, maybe he sometimes sleeps in the cab and eats pot noodles to have it as cash, but officially it isn't income, it is the same as someone going on a business trip, and reclaiming their travel expenses - because it is someone going on a business trip and reclaiming their business expenses!

So, in the same way that if a salesperson flies to US on a sales call, pays the ticket up front, and reclaims the ticket later couldn't claim that as "income", nor can you.

If the employer now declares it is income, they, and you, will get taxed on it. Not something you want to happen...

Your mortgage broker is wrong, the employer right.