GEMHL Hints and Tips
Income Information in IDOL
Employed
April 2015
Imagination at work.
Contents
This document will provide more clarity around entering applicant income
information into IDOL with real-life examples
•
In-putting Data into IDOL (Employed)
•
Calculating MONTHLY PAYE Income
•
Calculating 4 WEEKLY PAYE Income
•
Calculating PAYE Income
•
Income – Key Points to Note
•
Unacceptable Income Types
•
Summary of Changes to Income
•
Net DTIR Calculation
•
General Consideration
In-putting data into IDOL (Employed)
Example
•
Mr took early retirement. He receives an annual pension of £24,000 before tax and NI, and £1,594.81 is transferred
directly into his bank every month
Mrs works in her local doctors surgery part time. She earns £10,000 per year and does overtime on a Saturday for which
she earns an additional £2,000 per year. She receives on average £914.81 per month directly into her bank account
Case:
•
1)
2)
The amount your applicant
earns in total each year
1
before any deductions
2
12,000
10,000
The amount your applicant
earns in total each year,
3
915
which is guaranteed or does
not fluctuate before
£10,000 Basic
£2,000
Overtime
£12,000 Total
£10,000 Basic
£914.81 rounded
to £915
deductions
3)
The amount your applicant
takes home every month e.g.
by bank transfer
4)
The amount of pension
income your applicant
receives after deductions on
a annual basis
4
19,138
£1,594.81 x 12 =
£19,138 Total
(rounded)
Calculating MONTHLY PAYE Income
Basic/Regular Pay
Payslip 1
£1,728.90+£73.99=£1,803
Payslip 2
£1,728.90+£83.24+£388.38=2,201
Total £4,004 / 2 x 12
= £24,024(a)
2
1
2
IDOL entry data
2
£24,024
Irregular Pay
Payslip 1
£96+308.28=£404
Payslip 2
£347
Total £751 / 2 x 12
= £4,506(b)
IDOL entry data
1
Net Pay
Payslip 1
£1,574
Payslip 2
£2,036
Total £3,610 / 2
= £1,805
IDOL entry data
£28,530 *
3
3
£1,805
* (a) + (b)
2
1
Questions Raised
2
1) Why has the payslip format changed
?
2) Why would the units rate differ ?
3) Pension considered as info received
3
that customer was out of the plan
Calculating 4 WEEKLY PAYE Income
Basic/Regular Pay
Payslip 1
£1920+£96
Payslip 2
£2016
Total £4,032 / 2 x 13
= £26,208(a)
2
1
IDOL entry data
IDOL entry data
2
Irregular Pay
Payslip 1
£180
Payslip 2
£90+£96
Total £366 / 2 x 13
= £2,379 (b)
1
£26,208
£28,587 *
* (a) + (b)
3
2
1
Net Pay
Payslip 1
£1,689
Payslip 2
£1,693
Total £3,382 / 2
= £1,691
IDOL entry data
3
£1,691
Questions Raised
1) What was P.A.B.S.?
It was not included in Total Gross Taxable
2) Was the Bank Holiday Pay contractual?
Title or Job Number | XX Month 201X
3
If part of the contract and present in both payslips,
would be considered as regular
Calculating PAYE Income
2
2
1
1
3
Basic/Regular Pay
Payslip 1
£683
Payslip 2
£683
Total £1,366 / 2 x 13
= £8,879(a)
IDOL entry data
2
£8,879
3
Irregular Pay
Payslip 1
£42
Payslip 2
£85
Total £127 / 2 x 13
= £826(b)
IDOL entry data
1
£9,705 *
* (a) + (b)
Net Pay
Payslip 1
£678
Payslip 2
£696
Total £1,374 / 2
= £687
IDOL entry data
3
£687
Income – Key Points to Note
Unacceptable Income Types
Net DTIR Calculation
•
•
•
•
•
•
•
•
•
•
•
•
•
(A) + (B)* + (C)* + (D)* + (E)*
Total combined net monthly income
Statutory Sick Pay (SSP)
Occupational Sick Pay (OSP)
Self-certification of Income
Income Support
Job Seekers Allowance
Housing Benefit
Pension Credit
Bereavement Benefit
SC60 / CIS Vouchers or equivalent
Housekeeping
PPI / MPPI Claim
Lodger’s Rent
Rental (Can be used as offset only)
A = GEMHL monthly mortgage payment using the higher of the Initial Rate or
the Reversionary Rate including a stress rate + Cost of the Repayment
Strategy (if applicable)
B = Total remaining monthly mortgage or secured loan payments (excluding
GEMHL MI)
C = Total remaining monthly unsecured loan payments
D = Total remaining revolving monthly payments including mail order, taken as
3% of the outstanding balance or the monthly contractual payment if higher
E = Payments made on a defaulted / delinquent account / CCJ / Administration
Order / Maintenance / Alimony / Attachment of Earnings
F = Total A+B+C+D+E
* This assessment will use the highest amount between the declared by
the applicant and the credit bureau data.
Summary of Changes to Income
General Consideration
Calculation to be based on ‘Net Income’
Maximum Net DTIR 50%
2 affordability assessments to be completed on Net Income
Annual and Quarterly bonuses not acceptable – frequency
must be equal to or greater than monthly
 Increase in % of irregular to 50% to support expenditure
 Minimum Net income £14,000 before any benefits and/or
maintenance
Work with the applicant and try to assess income information
directly from payslips.
Before you put in Gross Basic look at the following:
 Is it on each payslip ?
 Is it the same amount ?
 Question the applicant on uncommon items. Are they
contractual ?
 Is the gross to date in line with the paid amount ? If not,
question the applicant.
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