Tier 1 extension- Taxable pay v.s. Total Gross

[MOGA84]

My payslips show the following:
Total Gross = X
Taxable Pay = X + Pension Contribution
NI'able Pay = X

If Total gross is used to calc the total earnings for last 12 months, it shows a shortfall of 1000ish GBP, But if the Taxable pay used it shows no shortfall.

The question: which payment I should count in the extension form, the Total gross or the Taxable pay?

[geriatrix]

The PBS assessment is based on "gross income". Nothing to do with taxable or non-taxable earnings.

[MOGA84]

Thanks sushdmehta.

[MOGA84]

I’ve registered myself as a self employed with HMRC after I knew that it’s a mandatory to count earnings from my freelancing job. The registration made 2 weeks after I’ve received my first earnings from freelancing, However, I’ve entered 2 months earlier, two months before the first payment receive date, in the start of business date in my registration form. as per the HMRC I can apply within 3 months of the end of my first month in business.
I’ve also requested a small earning certificate for exemption of NI class 2. The start date shown on the certificate is about 2 month earlier than the first payment received.
Tier 1 general guidance says: applicants claiming points for self-employed earnings made in the UK must provide documents to show that they are registered as self-employed and were registered as self-employed for the period when this money was earned.
The self employed welcome letter is showing the date the letter were sent which is 1 month after the date of first payment, But the small earning certificate start date is 2 months before.
The question: which date will be considered by Home office? Welcome letter sent date or Start date of small earning certificate.

[geriatrix]

I’ve registered myself as a self employed with HMRC after I knew that it’s a mandatory to count earnings from your freelancing job.

No, it is not mandatory to count earnings from my freelancing job - unless you do not score enough points for previous earnings from your employment and wish to include earnings from self-employment also to score the required points.

So, the question to answer first is - do you score the required points for previous earnings from your employment (only)?

The "area" is your Tier 1 (General) application, not your "questions regarding it". All questions about your Tier 1 (General) application is "same area".

[MOGA84]

Hi Sushdmehta,
Thanks for your answer. I've meant that It's a mandatory requirement to register myself as self employed to count the freelancing earnings.
Yes I've to claim both employed + self employed previous earnings to score enough points for the extension.

Thanks again,

[geriatrix]

One cannot be issued a small savings exception letter unless one is registered as self-employed in HMRC records. So, the date of welcome letter is irrelevant.

[MOGA84]

Thanks Sushdmehta.

[neeraj-hsmp]

Dear Experts,

I have started taking childcare voucher which has reduced my taxable income but my gross is same. Which figure should i use for calculations..

Gross = X
Taxable = X - Childcare vouchers

Thanks In advance
Neeraj Gogia

[MOGA84]

Hi Sushdmehta,
All the accountant letter samples I’ve seen shows the earning income of both sources (Salaried + Self employed income), but I don’t want to bother my accountant by salaried income source as I already have enough evidence for the salaried income.
The first question:
1- Does it matter if the accountant letter shows only earning from self employed source instead of both sources?

I’ve only 1 overseas client who is paying in foreign currency. The payment is made directly to my UK bank account, the UK bank credit my account in GBP currency after doing currency exchange using bank intraday rate. I receive by post a credit advice letter from the bank for each payment credited to my account showing the original amount in foreign currency, exchange rate applied and the equivalent in GBP which been credited to my account.
The second question:
2- Which currency will be considered to claim the earning? The original amount paid in foreign currency or the amount received in GBP?

[geriatrix]

1. An accountant cannot certify income from "employment" for the purpose of Tier 1 (General) application, but income from "self-employment" only.
2. You are being paid in the UK in GBP, even though the person making the payment is paying your bank in foreign currency, so I believe it will be simply GBP.

[MOGA84]

Thanks Sushdmehta.

[MOGA84]

Hi Sushdmehta,
I've another question regarding application form

B26. The applicant should indicate whether they consider themselves to be employed or self-employed.

I think I had read similar posts around this question, But couldn't find those for SE - Sole Trader case.

Given my case above (Employed + Self Employed- Sole Trader ), What's the answer in this case Employed or Self Employed or check both?

[geriatrix]

Both, if you are using income from both sources to qualify.

[sensible]

Both, if you are using income from both sources to qualify.

Dear Forum members
Please put light on the following scenario.


I was issued a tier general visa on March-11 on the basis of salary and self employment(UK earnings). I have paid whatever the tax was due. Now, I have started other business in overseas and running good. I was physical present in overseas for 6 weeks from( Aug-12 till mid September-12) and did self employed work.

I came back UK in mid of September and doing lecturer job and also doing the overseas project as well and payments are being credit in my overseas account. I am registered self employed in the UK and overseas UK business also going fine.

The query is

1 ) Can i claim overseas earnings as I am physically in the UK?

2) I have overseas bank statement, tax letter issued from the government.



Hope to get a positive response soon

Thanks

[mulderpf]

Yes, you can use any earnings to substantiate your application.

[mharoon79]

Yes, you can use any earnings to substantiate your application.

Thanks Guru.
If the invoices issued in the UK for overseas work and receive payment later in overseas, will the HO accept that payment?