Urgent Please?Accountant Letter for contractor?

[somsom2010]

I have been refused Tier 1 visa In august and will reapply on 05/10/2010, i am working as Contractor .
the reason for the refusal was and ECO comment :-(As evidence you have shown you bank statements and a letter from your charted accountant. The bank statement reflect the gross payments stated in the accountant letter, However the published guidance require this letter to detail the gross and net payments made to you.you letter doesn't detail the net payments .Your evidence is not therefore in accordance with the published guidance.).
So he awarded me 0 for previous earnings, the accountant issued a new letter to detail both Gross and Net payments. In the letter he reflected the credit from the bank statements as gross then he calculated the tax then the Net.Therefore Gross earnings -Tax = Net earnings .I would like your guys assistance to know whether this letter will accepted or not .and he calculated the earning from 01/07/2009 to 30/06/2010 will this 12 consecutive months will these period fall in the last 15 months or should i begin from 01/08/2009 to 31/07/2010.
Please i need your assiastance as soon as possible .
Thanks in advance .

[somsom2010]

I have been refused Tier 1 visa In august and will reapply on 05/10/2010, i am working as Contractor .
the reason for the refusal was and ECO comment :-(As evidence you have shown you bank statements and a letter from your charted accountant. The bank statement reflect the gross payments stated in the accountant letter, However the published guidance require this letter to detail the gross and net payments made to you.you letter doesn't detail the net payments .Your evidence is not therefore in accordance with the published guidance.).
So he awarded me 0 for previous earnings, the accountant issued a new letter to detail both Gross and Net payments. In the letter he reflected the credit from the bank statements as gross then he calculated the tax then the Net.Therefore Gross earnings -Tax = Net earnings .I would like your guys assistance to know whether this letter will accepted or not .and he calculated the earning from 01/07/2009 to 30/06/2010 will this 12 consecutive months will these period fall in the last 15 months or should i begin from 01/08/2009 to 31/07/2010.
Please i need your assiastance as soon as possible .
Thanks in advance .

Waiting for you assistance please !

[dlight]

I have been refused Tier 1 visa In august and will reapply on 05/10/2010, i am working as Contractor .
the reason for the refusal was and ECO comment :-(As evidence you have shown you bank statements and a letter from your charted accountant. The bank statement reflect the gross payments stated in the accountant letter, However the published guidance require this letter to detail the gross and net payments made to you.you letter doesn't detail the net payments .Your evidence is not therefore in accordance with the published guidance.).
So he awarded me 0 for previous earnings, the accountant issued a new letter to detail both Gross and Net payments. In the letter he reflected the credit from the bank statements as gross then he calculated the tax then the Net.Therefore Gross earnings -Tax = Net earnings .I would like your guys assistance to know whether this letter will accepted or not .and he calculated the earning from 01/07/2009 to 30/06/2010 will this 12 consecutive months will these period fall in the last 15 months or should i begin from 01/08/2009 to 31/07/2010.
Please i need your assiastance as soon as possible .
Thanks in advance .

Waiting for you assistance please !

I am not an expert but here is my view on this:

Gross paymets = Amounts recieved (in bank) - Reimbursments*
Then
Net Payment = Gross Payments - Expenses (such as euipment, bills, rent etc)

Reimbursment are those expenses that occurred performing the job/service and are paid to you by your client.

This Net Payment is what they need! Taxes are not required to be subtracted from Net Payment because UKBA consider net amount earned before tax. However to be more safe, if you are well over the
requirement earnings then subtract the taxes too.

Please let me know if you need more details.
Hope this helps.

[somsom2010]

I have been refused Tier 1 visa In august and will reapply on 05/10/2010, i am working as Contractor .
the reason for the refusal was and ECO comment :-(As evidence you have shown you bank statements and a letter from your charted accountant. The bank statement reflect the gross payments stated in the accountant letter, However the published guidance require this letter to detail the gross and net payments made to you.you letter doesn't detail the net payments .Your evidence is not therefore in accordance with the published guidance.).
So he awarded me 0 for previous earnings, the accountant issued a new letter to detail both Gross and Net payments. In the letter he reflected the credit from the bank statements as gross then he calculated the tax then the Net.Therefore Gross earnings -Tax = Net earnings .I would like your guys assistance to know whether this letter will accepted or not .and he calculated the earning from 01/07/2009 to 30/06/2010 will this 12 consecutive months will these period fall in the last 15 months or should i begin from 01/08/2009 to 31/07/2010.
Please i need your assiastance as soon as possible .
Thanks in advance .

Waiting for you assistance please !

I am not an expert but here is my view on this:

Gross paymets = Amounts recieved (in bank) - Reimbursments*
Then
Net Payment = Gross Payments - Expenses (such as euipment, bills, rent etc)

Reimbursment are those expenses that occurred performing the job/service and are paid to you by your client.

This Net Payment is what they need! Taxes are not required to be subtracted from Net Payment because UKBA consider net amount earned before tax. However to be more safe, if you are well over the
requirement earnings then subtract the taxes too.

Please let me know if you need more details.
Hope this helps.

.
Many thanks for your reply, Actually i don't have any records of my expensive, however it been paid sperately and all what had been deposited are profits of my business. what should i do ?Will they accept it like this Gross as money depoisted in the bank - tax = net .

[somsom2010]

I have been refused Tier 1 visa In august and will reapply on 05/10/2010, i am working as Contractor .
the reason for the refusal was and ECO comment :-(As evidence you have shown you bank statements and a letter from your charted accountant. The bank statement reflect the gross payments stated in the accountant letter, However the published guidance require this letter to detail the gross and net payments made to you.you letter doesn't detail the net payments .Your evidence is not therefore in accordance with the published guidance.).
So he awarded me 0 for previous earnings, the accountant issued a new letter to detail both Gross and Net payments. In the letter he reflected the credit from the bank statements as gross then he calculated the tax then the Net.Therefore Gross earnings -Tax = Net earnings .I would like your guys assistance to know whether this letter will accepted or not .and he calculated the earning from 01/07/2009 to 30/06/2010 will this 12 consecutive months will these period fall in the last 15 months or should i begin from 01/08/2009 to 31/07/2010.
Please i need your assiastance as soon as possible .
Thanks in advance .

Waiting for you assistance please !

I am not an expert but here is my view on this:

Gross paymets = Amounts recieved (in bank) - Reimbursments*
Then
Net Payment = Gross Payments - Expenses (such as euipment, bills, rent etc)

Reimbursment are those expenses that occurred performing the job/service and are paid to you by your client.

This Net Payment is what they need! Taxes are not required to be subtracted from Net Payment because UKBA consider net amount earned before tax. However to be more safe, if you are well over the
requirement earnings then subtract the taxes too.

Please let me know if you need more details.
Hope this helps.

.
Many thanks for your reply, Actually i don't have any records of my expensive, however it been paid sperately and all what had been deposited are profits of my business. what should i do ?Will they accept it like this Gross as money depoisted in the bank - tax = net .

According to published guidance, letter from your accountant must be on headed paper and must confirm gross and net pay for the period claimed. The letter should also give the break down of salary, dividends, profits, tax credits and dates of net payment earned. If the earnings are share of net profit of the company, the letter should also explain this. Your accountant must be either fully qualified chartered accountant or certified accountants who are members of registered body such as ACCA, CIMA, ACA, CIPFA etc.

In the guidance they never mention that the accountant letter should mention a breakdown of expenses, In my case as per the guidance they require breakdown of Profits , tax credit and dates of net payment earned and that what exactly the new accountant letter detail.


The applicant can claim points for previous earnings in any single, consecutive 12-month period during the 15 months immediately before the date of applying i will provide income from 01/07/2009 till 30/06/2010
will this period will be acceptable ?


Please moderators and seniors i need an assistance as soon as possible because i am going to apply online tomorrow.

[HSK Accountancy Services]

I have been refused Tier 1 visa In august and will reapply on 05/10/2010, i am working as Contractor .
the reason for the refusal was and ECO comment :-(As evidence you have shown you bank statements and a letter from your charted accountant. The bank statement reflect the gross payments stated in the accountant letter, However the published guidance require this letter to detail the gross and net payments made to you.you letter doesn't detail the net payments .Your evidence is not therefore in accordance with the published guidance.).
So he awarded me 0 for previous earnings, the accountant issued a new letter to detail both Gross and Net payments. In the letter he reflected the credit from the bank statements as gross then he calculated the tax then the Net.Therefore Gross earnings -Tax = Net earnings .I would like your guys assistance to know whether this letter will accepted or not .and he calculated the earning from 01/07/2009 to 30/06/2010 will this 12 consecutive months will these period fall in the last 15 months or should i begin from 01/08/2009 to 31/07/2010.
Please i need your assiastance as soon as possible .
Thanks in advance .

Are you working through Umbrella company?

If yes then you are effectively the employee of that company and then submit only document required as an employee. Accountant letter is not required in that case.

If not then you are a self-employed and there are different set- of documents required. Just accountant letter is not enough.

[somsom2010]

I have been refused Tier 1 visa In august and will reapply on 05/10/2010, i am working as Contractor .
the reason for the refusal was and ECO comment :-(As evidence you have shown you bank statements and a letter from your charted accountant. The bank statement reflect the gross payments stated in the accountant letter, However the published guidance require this letter to detail the gross and net payments made to you.you letter doesn't detail the net payments .Your evidence is not therefore in accordance with the published guidance.).
So he awarded me 0 for previous earnings, the accountant issued a new letter to detail both Gross and Net payments. In the letter he reflected the credit from the bank statements as gross then he calculated the tax then the Net.Therefore Gross earnings -Tax = Net earnings .I would like your guys assistance to know whether this letter will accepted or not .and he calculated the earning from 01/07/2009 to 30/06/2010 will this 12 consecutive months will these period fall in the last 15 months or should i begin from 01/08/2009 to 31/07/2010.
Please i need your assiastance as soon as possible .
Thanks in advance .

Are you working through Umbrella company?

If yes then you are effectively the employee of that company and then submit only document required as an employee. Accountant letter is not required in that case.

If not then you are a self-employed and there are different set- of documents required. Just accountant letter is not enough.

I am working as Contractor working for my self, Regarding to the Guidance,

If the applicant is a contractor who does not operate either through his/her own company or as an employee, he/she may provide:

an accountant’s letter confirming a breakdown of his/her gross and net earnings for the period claimed; and
personal bank statements clearly highlighting all credit payments made to his/her account from employment undertaken during the earnings period claimed.

So that's mean they require a bank statements and a letter from the Accountant, My concern here about the Accountant letter if he detail gross earnings, tax and net earnings will be accepted or not?

Thanks

[dlight]

Hi,

I believe it is better to estimate and show-up (not fake) some expenses because it will show you up as a proper contractor (who do some record keeping, not ad-hoc).

You can simply sum up all your rent, travel (if any), phone line and anything that you use to 'perform your job/service' at your end and list them down as expenses.
Somehting like:

Total Earnings (recived in bank): 1000
Reimbursments: 1000
Gross Earings: 9000
Rent for 12 months: 500
Phone line bills: 500
etc

Net Earnings: 8000
Tax Paid: 100

Net Earnings after tax: 7000

To clarify my point, I am not saying you to report fake expenses but real ones need to be formalized in letter. Just tell your accountant that you encounter such expenses and he will add them in letter and subtract from gross earnings.

Regards

[somsom2010]

Hi,

I believe it is better to estimate and show-up (not fake) some expenses because it will show you up as a proper contractor (who do some record keeping, not ad-hoc).

You can simply sum up all your rent, travel (if any), phone line and anything that you use to 'perform your job/service' at your end and list them down as expenses.
Somehting like:

Total Earnings (recived in bank): 1000
Reimbursments: 1000
Gross Earings: 9000
Rent for 12 months: 500
Phone line bills: 500
etc

Net Earnings: 8000
Tax Paid: 100

Net Earnings after tax: 7000

To clarify my point, I am not saying you to report fake expenses but real ones need to be formalized in letter. Just tell your accountant that you encounter such expenses and he will add them in letter and subtract from gross earnings.

Regards

All the expenses uncured to run my business were travel expenses , rent and phone bills, most of them paid separately as i don't keep records of them i will estimate it and i will ask the accountant if he can draw a separate letter to detail the estimated expenses .In this case the money deposited in the bank will be net income .