URGENT Q ON GIANT UMBREALL COMPANY EARNINGS

[mzeke]

I have been contracting though Giant group for the past 6 months but am thinking of going back to Oz to switch to tier 1 as I am on WHV currently. The payslips they have provided me show my contract income than the expenses taken out than my gross salary. If they take my contract income, than I qualify for Tier 1, but if they have taken my contract income minus my expense s than I don't qualify. Giant has assured me that it is my contract income that homeoffice will consider even though the payslips show that my gross salary (minus the expenses) is much lower. giant have provided a useless reference letter that says that my gross slaray is contract income minus expenses but than claim that they provide this letter to everyone and they get through.

It has been highly regretful going with Giant as they promised me from the beginning that my contract income would be my gross salary and promised that i will get my tier 1 no problems. but when I drafted a letter for them to put on their letterhead saying my contract income is my gross income, they refused to do the letter but says that homeoffice will know what is going on. So on one hand they confirm over the phone and in the contact log that gross income is my contract income, but than when I ask them to document it, they provide a stupid reference letter that contradicts what they say and they provide these silly payslips that show a lower income based of contract income minus expenses.

If i knew they were going to be so dishonest about the whole situation, I should have gone PAYE.

Does anyone have any experience of using the Giant payslips and getting their tier 1?

[1971]

Mzeke,

You need to write a well detailed cover letter to HO explaining in clear and simple terms the circumstances. Did the 'Giant Group' give you a contract letter stating you daily/hour/monthly rate of payment? If so, include that letter in your application and a breakdown analysis of this on excel showing your gross,expenses and net pay per month/yearly.

I think this should be helpful

I wish you the best.

~1971.

[mzeke]

Mzeke,

You need to write a well detailed cover letter to HO explaining in clear and simple terms the circumstances. Did the 'Giant Group' give you a contract letter stating you daily/hour/monthly rate of payment? If so, include that letter in your application and a breakdown analysis of this on excel showing your gross,expenses and net pay per month/yearly.

I think this should be helpful

I wish you the best.

~1971.

Thanks heaps,

Just wondering if anyone has had a similar situation as i am sure I am not the only one with Giant. Also how does me writing a letter to homeoffice help as it clearly states on tier 1 application that gross income does not include expenses.

Cheers

[GIMS]

1971,

Income = Gross + Expenses + Other Pre-Gross Deductions
So income is always greater than gross by a sizable margin when considered over a year. And thats what mzeke says Giant told him would appear as gross so that he could claim as earnings.

The only problem is Giant are refusing to state in writing that the Income is Gross. I suppose if income becomes gross then what will be income? Only if Giant were to doctor the payslips.... Which would be like a proper summer in the UK.

Best is to find alternatives.

[NutanRaj]

Mzeke,

You need to write a well detailed cover letter to HO explaining in clear and simple terms the circumstances. Did the 'Giant Group' give you a contract letter stating you daily/hour/monthly rate of payment? If so, include that letter in your application and a breakdown analysis of this on excel showing your gross,expenses and net pay per month/yearly.

I think this should be helpful

I wish you the best.

~1971.

Hey My friend got similar situation with one of the umberlla company and that umberlla company quotated expenses(Travel expenses)...HO rejectcted stating travel expences are not part of your gross salary...

So be careful what kind of expences you are quoting as part of your gross...

take senior guys suggesion or meet any quality solicitor...



Thanks heaps,

Just wondering if anyone has had a similar situation as i am sure I am not the only one with Giant. Also how does me writing a letter to homeoffice help as it clearly states on tier 1 application that gross income does not include expenses.

Cheers

[GIMS]

mzeke-mzeke,

the best advice is to use a good solicitor.

i have used Giant and another umbrella company before with a view of having the earnings as evidence. the problem was expenses are good for UK people and not when u want a high amount for visa apps. coz the expenses reduce taxable income (gross pay) with a view of having u pay tax on a smaller amount of money.

so when i was with Giant i didnt declare expenses to ensure a higher gross pay and as a result got smaller pay (net pay) as compared to my colleagues (EU citizens).

what cheeky umbrella companies do is to ensure your gross pay is high with a view of helping u with the earnings evidence. instead of taking off umbrella company fee and other expenses fully, they let u get the money (higher gross pay) and have you pay them later. a bit dodgy...

anyway get a good solicitor who can find a clever way of arguing your case. with a good lawyer u can get away with most things. look at OJ.

cheers,

GIMS.

PS - r u from GP or Cape?

[republique]

mzeke-mzeke,

the best advice is to use a good solicitor.

i have used Giant and another umbrella company before with a view of having the earnings as evidence. the problem was expenses are good for UK people and not when u want a high amount for visa apps. coz the expenses reduce taxable income (gross pay) with a view of having u pay tax on a smaller amount of money.

so when i was with Giant i didnt declare expenses to ensure a higher gross pay and as a result got smaller pay (net pay) as compared to my colleagues (EU citizens).

what cheeky umbrella companies do is to ensure your gross pay is high with a view of helping u with the earnings evidence. instead of taking off umbrella company fee and other expenses fully, they let u get the money (higher gross pay) and have you pay them later. a bit dodgy...

anyway get a good solicitor who can find a clever way of arguing your case. with a good lawyer u can get away with most things. look at OJ.

cheers,

GIMS.

PS - r u from GP or Cape?

I don't see how expense is income. Expenses sometimes are deductible. Your gross is your gross and that is where it starts from. Expenses are not a supplement to gross.

[midget]

I have been contracting though Giant group for the past 6 months but am thinking of going back to Oz to switch to tier 1 as I am on WHV currently. The payslips they have provided me show my contract income than the expenses taken out than my gross salary. If they take my contract income, than I qualify for Tier 1, but if they have taken my contract income minus my expense s than I don't qualify. ...

...


If i knew they were going to be so dishonest about the whole situation, I should have gone PAYE.

Hi Mzeke,

It appears you have taken a similar approach to a lot of contractors in trying to minimise your taxable income (gross salary) through claiming 'expenses'.

Unfortunately by doing so you have minimised your taxable income under the threshold to earn a Tier 1 visa.

I hardly think Giant are being dishonest - they are reporting as income the income that you were prepared to pay tax on - it seems to me that you are wanting your cake and eating it too ( a low income for tax purposes, and a high income for Tier 1).

Having worked as a contractor myself (indeed, for a period with Giant before concluding I was better off with my own ltd company) I can sympathise with your position, but I'm not sure there's a lot you can do.

As GIMS suggested, not claiming expenses would have meant short term pain in paying more tax, but longer term you would have qualified. If it's possible for you, can you stay on longer in the UK and structure your earnings with this in mind ?

[GIMS]

precisely.
thank you midget.

republique, i stated that income = gross + expenses + other things
meaning that gross is not made up of expenses and that there is no way u can add it up to gross.
gross is taxable pay. whilst expenses are not taxed.

and also that Giant cant/wont alter the payslips.

[sule]

Mzeke, you gross will remain gross and thats what the HO needs to know. Going through an umbrella company only increases your tax free allowance which is about 5250 I think for PAYE. In your case this is 5250+expenses etc=XXX. Best way round is to also submit your contract with the company you work for which will show you gross earnings. You can then include a detailed cover letter and statements from Giant.

[krssubbu]

Hi all,

I am on a major confusion here.

I got my initial hsmp visa in Jan 2007. My visa is due for extension in Jan 2009. I am a contractor so i can claim for expenses. but after researching and posting on this forum and discussing with the homeoffice i came to know that HSMP team only considers the amount for which has been taxed. (Total amt - expenses = Gross)

I was parasol umbrella company and when i came to know claims are not accepted for HSMP, i stopped claiming.

I will be 29 years during my extension and i have masters. So i need 20 k for my extension

I know the HSMP team considers 12 consecutive months out of 15 months. Which means i can show earnings 12 consecutive payslips from Oct 2008 to Jan 2009.

From Oct 2007 to Sept 2008 i will be having £19000 and an extra £1200 from my part time earnings which will make £20200.

The reason why i am considering showing payslips from Oct 2007 to Sept 2008 is because next month i will be going on holidays 2 weeks and i wil not get paid because i am a contractor and dont have paid holidays. If i have to show Jan 2008 to Dec 2009 then i have to work extra in my part time when i come back from holidays which will be very difficult.

So could you guyz advice me if it is ok to show my earnings from Oct 2007 to Sept 2008 or is it better to show from Jan 2008 to Dec 2008.

Please advice me here.
Also are paid holidays from my part time job accepted (just clarification)

Thanks