Gross Income or Net Income?? Very Urgent

[Perdesi007]

Hi Guys,

For HSMP Tier 1 General, do we have to show gross income or net income to claim points? and if we are self employed can we deduct our expenses from it or it's gonna create problem ?

[aruni4470]

Hi Guys,

For HSMP Tier 1 General, do we have to show gross income or net income to claim points? and if we are self employed can we deduct our expenses from it or it's gonna create problem ?

Gross Income

[Sushil-ACCA]

Hi Guys,

For HSMP Tier 1 General, do we have to show gross income or net income to claim points? and if we are self employed can we deduct our expenses from it or it's gonna create problem ?

take help of accunts on this , in his letter he has to show gorss sales and net profit.

net profit will get u points for HO point

gross income is total collectio to coroborate and work out Net Income

[Perdesi007]

sushil, my age is 29 and i need 26,000 + to show to get 25 points. According to sushil points will be granted on net income not on grass income, it means i'll have to show 30,000 + to get gross income around 26,000. Is it true ? Because i heard gross income should be 26,000 + not net. Senior members please help me in this regard.

[Sushil-ACCA]

sushil, my age is 29 and i need 26,000 + to show to get 25 points. According to sushil points will be granted on net income not on grass income, it means i'll have to show 30,000 + to get gross income around 26,000. Is it true ? Because i heard gross income should be 26,000 + not net. Senior members please help me in this regard.

THIS IS CORRECT

[Perdesi007]

but Tier 1 general guidance shows 26000 - 28999 gives you 25 points. they haven't clearly mentioned whether it should be gross or net. but i'm told it should be gross income.

[vks]

but Tier 1 general guidance shows 26000 - 28999 gives you 25 points. they haven't clearly mentioned whether it should be gross or net. but i'm told it should be gross income.

Read through Para 113 from Tier1 General Guidance

[Perdesi007]

vks thanx for your reply. But I don't really understand where i'm standing at the moment. I'm gonna apply on Thursday 1st of April and total amount shown in accounts is 26275 pounds. 16100.80 pence comes from salaried employment and rest of the amount is from Self-Employment. Do you think it'll be ok to apply under these conditions or i'm not eligible to apply for it. I haven't shown any expenses in self employment. I have shown field as IT Technician.. Please guide me what to do.

[vks]

vks thanx for your reply. But I don't really understand where i'm standing at the moment. I'm gonna apply on Thursday 1st of April and total amount shown in accounts is 26275 pounds. 16100.80 pence comes from salaried employment and rest of the amount is from Self-Employment. Do you think it'll be ok to apply under these conditions or i'm not eligible to apply for it. I haven't shown any expenses in self employment. I have shown field as IT Technician.. Please guide me what to do.

For self employment, the best thing to do is to get the guidance from accountant.

But, for salaried employment, it should be straight forward with pay slips and bank statements

[arsenal49]

i have managed to confuse myself here. can someone please remove the confusion.

Scenario A: I am a salaried person and earning gross income of 25000 GBP.

Do i even need to bother with net income calculation? UKBA can see transactions of monthly income(which would be net income) on my bank statement and do the calculation to realise my gross income. Is it not how it works?

Scenario B: I am self employed and earned 5000 GBP in last 12 months. I fill out self assessment form blah blah to figure out how much tax i owe to the state and deduct it accordingly.

To claim earning points, i would say that i have earned 25000 + 5000 gbp in last 12 months so my total gross income is 30,000 gbp.

Where am i wrong in my calculation? I understand accountant would give me a proper documentation to back up my self employed earnings but at the end of the day i have earned 30K in last 12 months. no?

your help is much appreciated

regards

[push]

i have managed to confuse myself here. can someone please remove the confusion.

Scenario A: I am a salaried person and earning gross income of 25000 GBP.

Do i even need to bother with net income calculation? UKBA can see transactions of monthly income(which would be net income) on my bank statement and do the calculation to realise my gross income. Is it not how it works?

Scenario B: I am self employed and earned 5000 GBP in last 12 months. I fill out self assessment form blah blah to figure out how much tax i owe to the state and deduct it accordingly.

To claim earning points, i would say that i have earned 25000 + 5000 gbp in last 12 months so my total gross income is 30,000 gbp.

Where am i wrong in my calculation? I understand accountant would give me a proper documentation to back up my self employed earnings but at the end of the day i have earned 30K in last 12 months. no?

your help is much appreciated

regards

UKBA needs to see two pieces of mutually corroborating evidence. In case of salaried employment altough the Gross income will be used to assign points for earning the evidence as above could be in the form of pay slips shoing Gross & Net income with Net income tallying with the amounts credited to bank as shown by the Bank statements.

Dont expect the caseworker to carry out any calculations.

[Perdesi007]

everybody is replying about salaried employment, but confusion is with self-employed income. Whether HO will give points on Gross income when you are self employed or on net income ?

[arsenal49]

seems like accountant is your best bet.. go see what he has to say regarding your circumstances. Get a quote from him for his servies as well as in written exactly what he will do for you. i dont think u will need to pay him for appointment.

regards

[HSK Accountancy Services]

everybody is replying about salaried employment, but confusion is with self-employed income. Whether HO will give points on Gross income when you are self employed or on net income ?

The correct word you need to use is Net Profit and not net income (to avoid confusion). For your self-employment business you can claim point only on Net profit after all expenses. You need an accountant to varify your net profit.

in your case

You will claim points as below:

Salaried income- Use Gross taxable salary

Self-employment- Net Profit= Gross- Business expenses

Hope that helps

[Perdesi007]

HSK Accountancy Services Tell you what, you're a life saver. That makes everything clear now and that's what i wanted to hear. Thank you so much for clearing it.

[HSK Accountancy Services]

HSK Accountancy Services Tell you what, you're a life saver. That makes everything clear now and that's what i wanted to hear. Thank you so much for clearing it.

You are welcome Perdesi007. Feel free to ask if you have any other question.

Cheers

[Perdesi007]

Thank you so much HSK Accountancy Services. I was confused about Self-Employment income. You made it clear ... I have sent my documents to HO today. pray for me

Also I'd like to say Thanx to all other members who tried to help me in this regard and posted their comments in this thread.

[vks]

Thank you so much HSK Accountancy Services. I was confused about Self-Employment income. You made it clear ... I have sent my documents to HO today. pray for me

Also I'd like to say Thanx to all other members who tried to help me in this regard and posted their comments in this thread.

All the best!

Everyone's' circumstances vary and one can't expect the exact wording that he/she expects from the forum. Good that you were happy with the clarification from HSMP accountancy services, who by the way seems to be an accountant, which is what most of the earlier posts were suggesting to!!

[Perdesi007]

I strongly agree with you VKS, even you told the same thing but i didn't get it. I'm really thankful to all of you who replied to my message and also i'm thankful to this forum which gave me so much info about visa.

[bagula_bhagat]

Hi All Experts,

I am confused now, how to claim points for my application. I would be putting in my application under new rules (6th April). I need to show 35K+ to score enough points for my Tier1 Application. Please help me to undersand how do I claim points for following. My income scenario is following:

1. Salary - £26K - I have got payslips to support this.
2. Self Employment - £10K.

Now, I have expenses of around £300 every month on my self employment income. I haven't engaged any accountant yet to show my earnings.

(considering the new income table for points. )
1. Can you please tell me how would I be awarded points and how many points on my income?

2. Will I be able to show my income £35K+ to score points for Tier-1?

3. Will I only be able to score £35K+ points if not showing any expenses on my self employment?

I would be highly thankful to your responses to my queries.

Thanks

[Perdesi007]

You cannot claim full amount on expenses, you can only claim upto 25% of total expenses. If you are claiming points on 10000 self-employment income then make sure this 10000 is your net profit. Net profit is counted on following formula:

Gross Income - Expenses = Net Profit.

10000 - 25% = 7500.

It's entirely upto you, how much expenses you want to claim. It's not necessary you claim full 25%, you can claim any amount upto 25% not more than this. For more specific guidance, check with your accountant.

[Perdesi007]

Hi Guys,
Do we pay tax first on net profit before applying for visa or it can be paid later on if you are self employed?

[Perdesi007]

is there any one to answer above question please ?