Tier 1 - Umbrella Company Documents

[sanjaym]

Dear Friends,

My extension is due in 2012 and I just want to prepare and be aware well in advance.

What documents as evidence will be needed for contracting kind of work. Currently I am using an Umbrella Company.

Regards
Sanjay

[PaperPusher]

Are you saving tax by claiming lots of expenses and getting a low salary?

[mulderpf]

PaperPusher - there's no need to troll someoone simply because you don't believe in something. There are various different reasons people use umbrella companies.

Sanjay, you'll just need your payslips from your umbrella company and then your bank statements proving the money going into your account. (No need for the invoices etc as you are technically working for the umbrella company and HO would therefore not care about the rest).

[PaperPusher]

PaperPusher - there's no need to troll someoone simply because you don't believe in something. There are various different reasons people use umbrella companies.

Sanjay, you'll just need your payslips from your umbrella company and then your bank statements proving the money going into your account. (No need for the invoices etc as you are technically working for the umbrella company and HO would therefore not care about the rest).

mulderpf, it appears you believe you have the ability to read my mind, I am afraid you do not.

To the original poster, be careful if you are using an umbrella company. If you have a low salary or hourly rate, this is what the UKBA takes in to account. You cannot use the expenses part of your payslip, after all that money is simply being repaid to you because that is what you have incurred - hence no tax paid.

[sanjaym]

Hi PaperPusher,

I did not understand this "You cannot use the expenses part of your payslip, after all that money is simply being repaid to you because that is what you have incurred - hence no tax paid.".

I take monthly salary and pay income tax also. How will it matter to Ho.

Regards
Sanjay

[ukukukuk2011]

In Home office language dont use the term umbrella ...

you are an employee and your umbrella is your employer . so what is important here is the gross payslips provided by ur employer and ur p60s ....

Hi PaperPusher,

I did not understand this "You cannot use the expenses part of your payslip, after all that money is simply being repaid to you because that is what you have incurred - hence no tax paid.".

I take monthly salary and pay income tax also. How will it matter to Ho.

Regards
Sanjay

[awiating_tier-1applicant]

as per my knowledge, what ever paperpusher mentioned was absolutely right!!

well, if you are taking lot of expenses(like food,bed and breakfast,mobile,travelling.accommadation etc) from your salary then at the end of the day your salary will come down. If these expenses are taxable then its not at all a problem but in most umbrella cases they wont be taxable..

[MPI]

PaperPusher - there's no need to troll someoone simply because you don't believe in something. There are various different reasons people use umbrella companies.

Sanjay, you'll just need your payslips from your umbrella company and then your bank statements proving the money going into your account. (No need for the invoices etc as you are technically working for the umbrella company and HO would therefore not care about the rest).

mulderpf, it appears you believe you have the ability to read my mind, I am afraid you do not.

To the original poster, be careful if you are using an umbrella company. If you have a low salary or hourly rate, this is what the UKBA takes in to account. You cannot use the expenses part of your payslip, after all that money is simply being repaid to you because that is what you have incurred - hence no tax paid.

hi Paperpusher , in my case I claiming some business expenses ( travel ,meal rate etc ) which are not rechargeable by my employer but I guess my umbrella company is using them to slightly increase my take-home income ( as they are not taxed obviously ) . Having said that these are very small in proportion to my weekly salary( roughly 5% or less weekly ) , and daily pay regardless of these claims are high.
Is this something I should worry? Also apart from my original payslips and bank statements would you I need any other proof?
Thanks in advance

[t1s2010]

I guess, paperpusher has made it simple. Same is mentioned in Guidance PDF.

Expenses claimed, reimbursement can not count towards earning.
So make the income count (and pay tax), at least up to your extension qualifying salary limit.

Say, if you get 50K per year. You need at least 40K to meet points.
Then, readjust salary structure to make such tax-free claims ONLY up to 10K (50K - 40K).

40K should count towards allowed headers under 'Guidance PDF' to meet point criteria.