HSMP - limited company earnings

[candikay]

Hi all,
I am a bit confused. I am contracting through a limited company which i am the sole director of. I was under the impression that I could use the gross amount paid to me (ie the amount i invoice out to my agency and which is paid into my business bank account) as my earnings to apply for the HSMP.
However my accountant has told me that the amount used is my gross personal income.
My invoiced amount is £23778, whereas my accountant is saying the following:
"We will then state that you have earnt a Gross Personal Income of £21,216.83. We will then break it down further into what was Net Salary, Gross Salary, Net Dividends and Gross Dividends"
I need to earn £23000 in order to qualify. Has anyone else had the same situation.
Which amount do i use?
Any help would be appreciated.
Thanks

[republique]

It sounds like your invoice included expenses which is not counted as income.
I believe your accountant would be the best person to tell you what counts as income.
As you are short, I suggest you explain to your accountant that you need 23K to qualify and ask if there is anything in his accounting methods that would allow him to state that you are making 23k instead of less.

For instance I dont count income unless it has been received, you can make an argument, that it is based on what has been billed although not yet received so discuss the situation with him.

[candikay]

Hi,
Thanks for the quick reply.
I have not claimed any expenses through the limited company for quite some time now, so i cannot think that this can be the difference.
From my understanding the difference is because of the company tax?
Is this possible?
Thank you for your help.

[republique]

Hi,
Thanks for the quick reply.
I have not claimed any expenses through the limited company for quite some time now, so i cannot think that this can be the difference.
From my understanding the difference is because of the company tax?
Is this possible?
Thank you for your help.

As I said, you should check with your accountant. You say now taxes means he probably has discussed it with you. Is not better to confer with the person who has personal knowledge of your situation, then make us speculate.
If it wasn't expenses, then it was for taxes just like you said.
Your invoice was for the company, and your company has expenses such as taxes. You clearly can't earn 100% what you have invoiced
So again, discuss with your accountant your options so you can meet the threshold.

[segs2tier1]

Candidkay, On how much of that money have you paid tax?

Normally, if you contract as an employee of an Umberalla Company, your Gross will be less than the actual Invoiced amount since you pay Employers NI as well. Your Gross goes down if you claim expenses...

If you give us a break down, I think I can suggest what to use.

Thanks