- FAQ
- Login
- Register
- Call Workpermit.com for a paid service +44 (0)344-991-9222
ESC
Welcome to immigrationboards.com!
Moderators: Casa, Amber, archigabe, batleykhan, ca.funke, ChetanOjha, EUsmileWEallsmile, JAJ, John, Obie, push, geriatrix, vinny, CR001, zimba, meself2, Administrator
JAH wrote:Dear Members,
I am going to apply HSMPTier 1 extension. I need to cover 25points in pervious earning i.e. 26000 GBP
My turnover is £35000.
Is £26000 is considered as gross income or net profit by the case worker for awarding me 25 points?
I am self-employed(sole trader) in retail business(not working through a Limited Company).
Is my self-employed gross income is considered as the net profit of the business?
Comment please!
Regards,
Ajmal
rizwan567 wrote:Gross Income (Total revenue/turnover) - Expenses = Net Profits (considered by caseworker)
Rizwan please hve a look...rizwan567 wrote:The link you have referred to is outdate by at least more than 2 years.. this is not in use by UKBA anymore but it does clear up a concept a bit however this is not the policy now a days.
This net Profit will not automatically become earnings of self employed for the purpose of points claim. They need to be withdrawn by way of salary or dividend. Gross amount of such taxable salary & dividend will be earnings for the purpose of PBS.rizwan567 wrote:Gross Income (Total revenue/turnover) - Expenses = Net Profits (considered by caseworker)
if you are self employed your net profit is automatically become your earning, and there is no such things as dividend in self employment, any money you withdraw from business is consider as Drawing unless you are working under the limited company arrangement.silverline wrote:This net Profit will not automatically become earnings of self employed for the purpose of points claim. They need to be withdrawn by way of salary or dividend. Gross amount of such taxable salary & dividend will be earnings for the purpose of PBS.rizwan567 wrote:Gross Income (Total revenue/turnover) - Expenses = Net Profits (considered by caseworker)
Imagine a situation where self-employed decide to reinvest business profits back into business, effectively making them un-taxable. One can not claim "net profit of business" as "gross earnings of self-employed" in this case.
Infact i am much confusedblue.olive wrote:if you are self employed your net profit is automatically become your earning, and there is no such things as dividend in self employment, any money you withdraw from business is consider as Drawing unless you are working under the limited company arrangement.silverline wrote:This net Profit will not automatically become earnings of self employed for the purpose of points claim. They need to be withdrawn by way of salary or dividend. Gross amount of such taxable salary & dividend will be earnings for the purpose of PBS.rizwan567 wrote:Gross Income (Total revenue/turnover) - Expenses = Net Profits (considered by caseworker)
Imagine a situation where self-employed decide to reinvest business profits back into business, effectively making them un-taxable. One can not claim "net profit of business" as "gross earnings of self-employed" in this case.
Please do not confuse with taxation rules , simply following the Home office guidance.
self-employed earnings within a business
or company structure:
If an applicant has worked in a selfemployed capacity in his/her own business
or company structure and has chosen to
keep his/her earnings within the business or
company, he/she could provide:
• business or company accounts that meet
statutory requirements and show the
net profit made for the earnings period
claimed; and
• personal/business bank statements.
The guidance just says profit and I said net profit above. The reason I draw that inference is that gross profit cannot ever be after tax, only net profit can be classified as before or after tax.Appendix A wrote:15. Where the earnings are the profits of a business derived through self-employment or other business activities, the earnings that will be assessed are the profits of the business before tax. Where the applicant only has a share of the business, the earnings that will be assessed are the profits of the business before tax to which the applicant is entitled.
JAH wrote:Rizwan please hve a look...rizwan567 wrote:The link you have referred to is outdate by at least more than 2 years.. this is not in use by UKBA anymore but it does clear up a concept a bit however this is not the policy now a days.
http://www.mulberryfinch.com/tier-1-gen ... /earnings/
they r saying abt gross income to claim points.....so its wrong then???rizwan567 wrote:JAH wrote:Rizwan please hve a look...rizwan567 wrote:The link you have referred to is outdate by at least more than 2 years.. this is not in use by UKBA anymore but it does clear up a concept a bit however this is not the policy now a days.
http://www.mulberryfinch.com/tier-1-gen ... /earnings/
Yes, I have had look of above link. So what next?
Theink does not talk about gross income, just gross amount - eg net income before tax and N.I.JAH wrote:they r saying abt gross income to claim points.....so its wrong then???rizwan567 wrote:JAH wrote:Rizwan please hve a look...rizwan567 wrote:The link you have referred to is outdate by at least more than 2 years.. this is not in use by UKBA anymore but it does clear up a concept a bit however this is not the policy now a days.
http://www.mulberryfinch.com/tier-1-gen ... /earnings/
Yes, I have had look of above link. So what next?
It's your earnings after expenses but before tax.digitalrev wrote:it seems pretty complicated now I am worried as well.
I am self employed . my total turn over is 62 K and i have expenses nearly 5k . so my gross income would be 57k am i right ?
am i going to get points for that 57k income?
or i have to show my net income after tax dedication, which is 14K i guess ??
has anyone applied as a self employed? any successful applicant ?
please tell us more.