Tier 1 (General) application with Umbrella co paying PAYE

[humble_soldier]

Hi everyone,

I hope someone can help me.

I am currently on PSW visa in the UK, aiming to apply for the Tier 1 General visa in October.

I am working for a company in the UK through a recruitment agency, and get paid by an umbrella company.

I receive PAYE payslips from the payroll company electronically, and the dates on the payslips corroborate with my bank statements, which also shows the exact name of the payroll company.

So, what evidence should someone in my situation submit to the Home Office?

The way I understand it is that I am an employee of the umbrella company, and that I can submit my payslips and bank statements.

Or should I submit invoices and supporting letters too?

Note that I have only worked for one company in the period under consideration.

Any help would be much appreciated!

[dev106]

well, i worked with an umbrella company before, and they used to send me the payslips mentioning their name on it...so, as per my knowledge I think your umbrella company= your employer..

but,

before you make your application ,I would like to remind you few things my friend,
-> do you claim any expenses . e.g: travelling, food, accomadation, telephone, internet etc.....
-> are those taxable expenses...
-> does your umbrella company pay your basic pay by the national minimum wage and later add all your non-taxable expenses to it and give you the net pay ( if this is the case , then you will end up in trouble ..if its not the case then no problem)

all the best mate...

ALL ISZZZ WELL:-)

[humble_soldier]

I claim accommodation expenses, which I am entitled to.

These expenses get subtracted from my gross income, which will equate to the gross taxable income. I then pay taxes and national insurance (including employer national insurance) on it.

At no point does my umbrella company re-add these expenses to give me a new net amount.

So what should I fill in under job description and company on the Tier 1 form? The company where I go to work every day or the umbrella company that "employ" me?

[John]

Your employer is the umbrella company.

[humble_soldier]

Your employer is the umbrella company.

Hi John, I really hope you can provide me with advice here - I am really stressed about the amounts on my umbrella payslip now.

Basically, I am claiming points for earnings higher than £35000.

The lowest amount I have earned for a month (hours x pay) is £3150, and the highest for a specific month £3700.

To explain my payslip situation, I will use the example of £3150. This is the gross amount before any deductions. This amount is listed on my payslip as Total Gross Pay.

However, I can claim expenses like accommodation and travel, which is deducted from this gross income to give the gross taxable income. This amount is also listed on the payslips.

If these amounts are considered, I cannot claim points for earnings.

In a nutshell, what the umbrella contractors are seemingly doing, is to take my gross income, subtract expenses, and then calculate tax and NI on these amounts.

The actual amount of net income is my gross earnings (the hours worked x pay eg £3150) minus tax and NI. The expenses do not get counted to improve my net earnings.

However, on the left hand column of the payslip, there are three columns: Basic Pay, Holiday Pay and Expenses. The sum of these amount corresponds exactly to the Total Gross Earnings (eg £3150).

[John]

My comment humble_soldier is that the comment by dev106 yesterday, see above, is correct and that as he/she says " if this is the case , then you will end up in trouble", to which I can only concur.

In claiming for those expenses and thus saving Tax and NI, you appear to have caused yourself a visa renewal problem. Unfortunately you are not the first member of this board to have fallen into that trap.

I wish the news was better. At least "Holiday Pay" is not a problem.

[humble_soldier]

John,

Is there no way to pay back additional taxes then?

[cochin007]

can any one give some address of umbrella company which is good?
I am trying for contracting and new to Uk on TIER 1 and would like to join
some good company ...

[MPI]

I was searching info around Umbrella when came to this thread with very worrying generic statements which I am hoping are not correct . More specifically John’s comment above saying :

My comment humble_soldier is that the comment by dev106 yesterday, see above, is correct and that as he/she says " if this is the case , then you will end up in trouble", to which I can only concur.

In claiming for those expenses and thus saving Tax and NI, you appear to have caused yourself a visa renewal problem. Unfortunately you are not the first member of this board to have fallen into that trap.

I wish the news was better. At least "Holiday Pay" is not a problem.

I am wondering what sort of trouble?! Is this an issue of claiming non-taxable expenses being legal or not? Well , many Umbrellas as far as I know allow these expenses at the moment within the merits of HMRC rules and regulations. Besides we all provide evidence receipts etc and these companies all get audited. Not mentioning the fact that we are just a PAYE employee and can’t influence the way umbrellas keeps their accounts.
Or is this the question of whether HO will rule out the amount of these expense, thus one may end up in a lower salary band (and potentially less points and risk of rejection)?
Please advice . If the latter , then those of us with enough points ( regardless of salary bands ) should not be worrying really.
Many thanks

[PaperPusher]

The reason it is allowed tax wise is that they are reimbursements, and that is why you have receipts.

If you claimed points for your expenses you would in effect be getting points for that amount twice over.

Read the Tier 1 guidance about contractual allowances (company car perhaps) and reimbursements.

If the amount you earn gives you enough points without counting the expenses then you have no need to worry.

[MPI]

The reason it is allowed tax wise is that they are reimbursements, and that is why you have receipts.

If you claimed points for your expenses you would in effect be getting points for that amount twice over.

Read the Tier 1 guidance about contractual allowances (company car perhaps) and reimbursements.

If the amount you earn gives you enough points without counting the expenses then you have no need to worry.

ok thanks , but these are not reimbursed . I am gona start new thread with my case details.