Anyone aware of cash allowance component in UK ? How does it work ? Is it Taxable/non taxable and if it is paid monthly along with salary ?

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Are you talking about per diem you get when you’re on a visit, i.e. on business visa (no work permit)?

If yes: the unused allowance is taxed flat 30%. So if you get £500 weekly, and submit bills amounting total of £400, the allowance you get for the next week would be £500 - (tax on unused amount for the previous week) £30 = £470.

Hope this helps.

Umm. No buddy , I am going on a skilled worker visa. This is mentioned in the offer letter along with fixed salary. So wanted to understand if somebody has the idea ?

Ahh okay, then it must be to do with unused leave encashment. They call the leave encashment as a cash allowance here. Better to get it clarified from the employer as many things have different definitions in the UK in contrast to the ones used in India.

For example, the everyday bank account you use in India is a savings account and current account is only for businesses etc. Here in UK, you would open current account as your primary account for everyday usage, salary credit etc and savings account is only for savings which doesn’t offer any outward transactions.

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