Net or Gross as a "contractor?"

[freebird2000]

Oh man this is confusing. Thanks in advance for the help.

I live in the United States and am applying for a PBS Tier 1 visa for the UK. Everything is in great shape but I have some questions regarding my previous earnings.

In submitting my application and showing previous earnings made as a "contractor" will HO be considering my net or gross pay?

Thank you very much for the help.

Best,

Jason

[dima]

Oh man this is confusing. Thanks in advance for the help.

I live in the United States and am applying for a PBS Tier 1 visa for the UK. Everything is in great shape but I have some questions regarding my previous earnings.

In submitting my application and showing previous earnings made as a "contractor" will HO be considering my net or gross pay?

Thank you very much for the help.

Best,

Jason

If you are self employed then the Net (gross income - expenses) otherwise its gross.
Also, read the pbs guidelines carefully... all these details are well explained in there.

[rizwan567]

If you are paying your taxes yourself (then you are self employed contractor) then net profits will be considered.

If you are workign as a contractor and you are getting salary slips or something similar from your employer or through umbrella company. And salary slips show that tax has been paid on your gross figure then gross will be considered.

Others please correct me if I am wrong.

[freebird2000]

Thank you both for the response.

Ok, so I am definitely a self-employed contractor.

In determining my NET salary, do I need to consider the taxes I owe on the gross income? Or is my NET salary just a figure of Gross minus expenses?

If that's the case, what if my expenses are very low? I'm not even sure what I'd include in my expenses. I don't advertise. All travel, meals, etc are paid by my employer. And I use their equipment when I'm on-site. I mean I have a web page that I pay for but it's like $60/year. Should I have more expenses than that or is that OK?

Thanks again for the help.

Jason

[freebird2000]

Also please see the following from the HSMP caseworker guidance instructions (Previous earnings PDF) which can be found here: http://www.bia.homeoffice.gov.uk/siteco ... rguidance/

Independent contractors: Applications from independent contractors are considered in the same way as those in salaried employment. The individual might not be running their own company, but will be paid for consultancy services, as and when they are provided. H.M. Revenue and Customs (HMRC) consider independent contractors (people who are not working for a single employer, but contract out their services as individuals to a single or a number of different employers, on a full-time, part-time, temporary, short term or consultancy basis) to be salaried employees for National Insurance Contributions (NIC) purposes. The employment status is determined by the terms and conditions under which they are engaged and work under their specific contract. Information on employment status for NIC can be found on the HM Revenue and Customs website, at www.hmrc.gov.uk under the section on Intermediaries Legislation IR35, found on the A-Z list via the site map on the HMRC website. Independent contractors will not operate as a business or as a limited company (or else they will fall into the self-employed category). However, the independent contractors may consider themselves to be self-employed because they do not have continuity of employment with a single employer. As these people may only be able to provide some evidence from the required evidence list for employed people, and some from the self-employed business-based list, they may be unsure of what category they fit into. The new Highly Skilled Migrant Programme has created a specific category for them.

According to the above, as a "contractor" then I am considered a salaried employee. Therefore, gross earnings would be considered. Am I readings this all wrong? Would welcome any thoughts/help.

Thank you all.