Annual earnings

donnyrovers91

Just something I wanted to know if anyone knew anymore information about.


On my annual earnings I usually put my annual earnings as per my P60 for the previous year is this correct?


At time of writing during the 2016/2017 period in addition to my present position I have done some work for the local authority and I have also been seconded until March which is greater than my earnings that I have been in previously.


Could someone please advise if I should change it in the MSE Credit Club details?

stevenhp1987

I always put my current annual earnings, e.g. if I get a pay-rise, I up my salary in applications to the new amount.

Some applications ask "Do you expect your income to go down in the next 12 months", which you will have to answer yes so it's likely that not all lenders will take the additional income into account as it's due to end in March.

donnyrovers91

Thanks for your response, I am likely to get overtime in this position as well. Would you personally in the details for the Credit Club note what my basic salary has been from April and then add an additional amounts for the local authority work and also this new role and amend where necessary on a 4 weekly basis as this is when I get paid.

stevenhp1987

I wouldn't continually adjust the figure... That would look odd.

Say you earned £25k but got an additional £5k from the secondment, I would then enter £30k. Adding overtime is a difficult one as it's not guaranteed. Perhaps you could estimate this based on previous overtime?

However, if you apply for credit, some lenders will ask if you expect a decrease, which you do.

magyar

I'm a little confused as your current earnings isn't something which is actually on your credit file, it's something which you will naturally have to tell any company when you apply for credit. It's something which is generally taken on trust and obviously lying about it would be fraud.

So basically it's up to you in respect of what you think is the right thing to choose. If you regularly got overtime or a bonus/commission which wasn't contractually guaranteed but you'd averaged a certain amount over the last three years, then I think you can probably add it.

If as in your case you have a temporary pay rise then I'd use common sense. If the debt in question is going to be paid off in the period of the temporary rise, I'd use it. If not, I wouldn't.