Effect of salary sacrifice and end-of-year tax code changes on credit card applications?

InvesterJones

I'm looking for a new card for travel, something like Barclaycard reward card, but wondered if:

a) Salary sacrifice is going to impact my gross annual salary reporting (I am sacrificing a LOT)

b) Temporary tax code changes should be taken into account when reporting monthly salary after tax - if they look at my statements they'll see a pitiful net monthly income currently due to tax code changes at the end of tax year collecting tax due on higher than expected interest payments in previous years.

All of which could take my otherwise healthy salary to something that in the immediate short term looks poor on statements of what's actually hitting my account (I'll be paying off the card in full from savings, not relying on salary in any case).

DullGreyGuy

a) Depends exactly what they ask you, how you answer and the very low probability of them asking for evidence

b) Depends what they ask, gross salary or net monthly pay... just answer the question asked honestly. 

surreysaver

Surely your salary is your substantive salary before any deductions?
Do your payslips show your substantive salary?

vacheron

I find they often ask for take home pay after deductions and often mention pensions by name, which for me would also look low. 

I usually state what my take home would be without any additional voluntary salsac pension contributions as this is what I could easily put towards any debt repayments if required. I have never (in 20-30 credit card applications), been asked to produce any kind of evidence, justification or payslips. 

After all, they have no problem with me taking the increased net pay then putting 60% in my SIPP 5 minutes later, (or indeed spending it all on magic beans from the local market). 

I could also clear all my current credit card debt  from savings, but this isn’t taken into account either. 🤷‍♂️

born_again

InvesterJones said:

I'm looking for a new card for travel, something like Barclaycard reward card, but wondered if:

a) Salary sacrifice is going to impact my gross annual salary reporting (I am sacrificing a LOT)

b) Temporary tax code changes should be taken into account when reporting monthly salary after tax - if they look at my statements they'll see a pitiful net monthly income currently due to tax code changes at the end of tax year collecting tax due on higher than expected interest payments in previous years.

All of which could take my otherwise healthy salary to something that in the immediate short term looks poor on statements of what's actually hitting my account (I'll be paying off the card in full from savings, not relying on salary in any case).

Why not just apply for the account you want, & stop worrying about A & B. 
As you have not mentioned the biggest factor. How much avaiable debt you are carrying at present.

maxximus75

Most just ask for yearly income BEFORE deductions don’t would be whatever your salary is.

Grumpy_chap

maxximus75 said:

Most just ask for yearly income BEFORE deductions don’t would be whatever your salary is.

Except, if SS has been properly processed it would mean a change of contract to a lower salary but higher pension contributions (or whatever the other return is in lieu of the salary).

InvesterJones

born_again said:

InvesterJones said:

I'm looking for a new card for travel, something like Barclaycard reward card, but wondered if:

a) Salary sacrifice is going to impact my gross annual salary reporting (I am sacrificing a LOT)

b) Temporary tax code changes should be taken into account when reporting monthly salary after tax - if they look at my statements they'll see a pitiful net monthly income currently due to tax code changes at the end of tax year collecting tax due on higher than expected interest payments in previous years.

All of which could take my otherwise healthy salary to something that in the immediate short term looks poor on statements of what's actually hitting my account (I'll be paying off the card in full from savings, not relying on salary in any case).

Why not just apply for the account you want, & stop worrying about A & B. 
As you have not mentioned the biggest factor. How much avaiable debt you are carrying at present.

What's 'available' debt? I have no debts (no mortgage, current credit card paid off in full)

Nebulous2

Regardless of how you present your income, you need to be consistent. Changing it to game the system could lead to a whole heap of trouble. 

surreysaver

Nebulous2 said:

Regardless of how you present your income, you need to be consistent. Changing it to game the system could lead to a whole heap of trouble. 

Would it be gaming the system? Different companies ask what appears to be the same question, in different ways.
What's your annual salary?
What's your monthly take home pay (I get paid every four weeks)?

The first question I would give my substantive salary before salary sacrifice.
For the second, I divide one pay-day by 12 and add it to another payday, but calculate the take-home before voluntary reductions.

Then you get others asking for total annual income.

I like to give a pedantically accurate answer to such questions, but this could throw up discrepancies on Hunter or other various databases 

Grumpy_chap

InvesterJones said:

born_again said:

Why not just apply for the account you want, & stop worrying about A & B. 
As you have not mentioned the biggest factor. How much avaiable debt you are carrying at present.

What's 'available' debt? I have no debts (no mortgage, current credit card paid off in full)

Your "available debt" is any debt you are actually carrying (which you indicate is nil) plus any debt you could be carrying without further lender approval.  This would include credit card facilities that are available to you.  A new prospective lender has no way of knowing whether you will or will not go out on a spending spree and max out all your credit cards straight away.