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so what is your question?krssubbu wrote:Hello Guyz,
I need your help here.
I am on the HSMP scheme and my visa extension is due in Jan 2009.
I work as a contractor and get paid hourly. As a contractor i am going though an umbrella company thus making me an employee of that company. They do my billing for me. Contractors have to pay Employers NI and umbrella company charges which are not taxable.
My question is, my Invoice value is £1600 per month (Total hours worked X hourly rate)
My Gross Value is £1300 (after deducting Employers NI and Umbrella Company charges - Not taxable). So i am actually paying tax on £1300.
I had mailed HSMP team many times but they seem to copy and paste what is there on the guidance, which really is not clear for contractors.
Could you please help me out here?
Thanks
Subbu
From similar cases on other forum, they will consider your total income including any other benefits before tax in as much you can proof those and it shows on your invoice or statement of account or something to show for it. Personal opinion!krssubbu wrote:Sorry i think i had forgotten to mention what my question was
My Question is will the the HSMP team consider the invoice value or will they consider the Gross Value
Ultimately you never received the full invoice amount as your umbrella company took a fair chunk of it - some to pay employers NIC, some for their own income. These amounts were never in your posession and you never paid any tax on them - hence they are not part of your income.krssubbu wrote: But my actual hours are the value mentioned on the Invoice value. The amount on the Invoce value is the actual amount it should have been taxed if i was a normal employee (not a contract employee). So dont you think i can go with the invoice value or is it the other way round.
As long as your commission was taxed it should be accepted. I don't know about holiday pay and defer to other more experienced forum members...krssubbu wrote: So i want to know if the HSMP team will consider Holiday Pay and Commission.
indian234 wrote:Now, i have learnt from previous posts that expenses are not part of gross pay..
Tier 1 policy guidance ver. 06/08 wrote:107. Unearned sources of income that we will not consider as previous earnings include:
• expenses (such as accommodation, schooling or car allowances) that reimburse the applicant for money he/she has previously spent;
• dividends, unless paid by a company in which the applicant is active in the day-to-day management, or unless the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, unless this forms part of the applicant’s business;
• interest on savings and investments;
• funds that were inherited;
• money paid to the applicant as a pension;
• expenses where the payment reimburses the applicant for money he/she has previously spent;
• statutory redundancy payment;
• sponsorship for periods of study; or
• state benefits.