Previous Earnings - Help me get this right!

[new2waix]

Previous Earnings - Help me get this right!

I will be claiming 45 points for this section. It is clearly the most "crucial" part of my application. I am however unsure on what section to complete and therefore what documentation to present. I have also heard a few contractor rejection stories that I truly want to avoid!

I work at a large European company (XYZ) as an analyst. I effectively work through a job agency (ABC). I submit my timesheets to ABC Agency. They then invoice XYZ Company. The XYZ Company pays my Management Company (LC) (Limited Company type setup). I receive payslips from ABC Agency and Management Company.

Firstly, how do I classify myself? Am I:
- Salaried earnings?
- Independent contractor?
- Self-employed?

Secondly, (depending on the answer above), what "special" documents do I need?
- Some people have mentioned problems with discrepancies between documents. How can I ensure all income is justified and balances out?

I can provide payslips, bank statements, tax return, work contract, letter from ABC Agency and letter from LC Limited Company. I cannot provide timesheets (as I no longer have these documents).

Any advice?

---------------------------------------------
3. Previous earnings from your work
---------------------------------------------

Salaried earnings – required evidence:
- Income Tax return covering period claimed for:
- Original wage slips covering period claimed for:

Independent contractor – required evidence:
- Income Tax return covering the full period claimed for:
- Copies of contracts over the period claimed for showing the full amount of earnings claimed:
- Invoices to cover the period claimed for showing the full amount claimed:
- Bank statements to cover the period showing the full amount claimed:

Self-employed - required evidence:
- Applicant’s Income Tax return:
- Applicant’s bank statements:
In addition:
Either
A)
- Company audited accounts and company tax return (2 documents):
OR
B)
- Unaudited business/management accounts confirming the total amount claimed plus either:
- Business bank statements together with a business tax return (2 documents)
OR
- Copies of contracts totalling the full amount payable to the individual together with corroborating invoices detailing your payment.

[new2waix]

Does anyone have experience with a limited company (in the UK)?

How does one complete the earnings section?

What documentation do you provide?

[skilachi]

Hi,

Just a look at the guidance form...think there are some sort of information on it that might help u.

[ens]

how do I classify myself? Am I:
- Salaried earnings?
- Independent contractor?
- Self-employed?


either , depends on what documents you can provide

[Bigbrother]

how do I classify myself? Am I:
- Salaried earnings?
- Independent contractor?
- Self-employed?


either , depends on what documents you can provide

i think you are under salaried simply because you get your payslips!

Independent contractors dont get payslips only work on invoices!

So if you get payslips you will also recive P60 end of year form. Do you remember filling in a P45? Are you under any umbrella company(for your contract)

Regards
BigB

[hemal_p]

How do HO calculate the currency conversion? I know from some post I've read that www.xe.com is used. Does the case worker take average for the entire year or the current currency rate for conversion?

[Bigbrother]

How do HO calculate the currency conversion? I know from some post I've read that www.xe.com is used. Does the case worker take average for the entire year or the current currency rate for conversion?

yes the average is used for the entire period!!

[hemal_p]

How can i find the average conversion rate from 1/4/06 to 31/3/07? I want to convert Indian Rupees to Great Britian Pound.

[new2waix]

i think you are under salaried simply because you get your payslips!

Independent contractors dont get payslips only work on invoices!

So if you get payslips you will also recive P60 end of year form. Do you remember filling in a P45? Are you under any umbrella company(for your contract)

I receive pay slips from my agency, not the company I actually work for.

I have not filled out (or at least signed) any P45.

As part of the HSMP application, it requires an "income tax return" as evidence. Is this an additional document to the P60? The P60 simply states your income earned during the period?

[Bigbrother]

i think you are under salaried simply because you get your payslips!

Independent contractors dont get payslips only work on invoices!

So if you get payslips you will also recive P60 end of year form. Do you remember filling in a P45? Are you under any umbrella company(for your contract)

I receive pay slips from my agency, not the company I actually work for.

I have not filled out (or at least signed) any P45.

As part of the HSMP application, it requires an "income tax return" as evidence. Is this an additional document to the P60? The P60 simply states your income earned during the period?

To hemal
go to www.oanda.com and you'll have to choose options which is quiet simple and easy!


To new2waix
seems quiet tricky your situation. Yes P60 is the official tax document that Ho recogonises! Do you receive any P60's?
If not and also havent filled out a P45 in which case you will be demeed a independent contracter and file in your own tax returns!

[new2waix]

http://www.workingintheuk.gov.uk/workin ... p_faq.html

29. What is an independent contractor?

Under Previous Earnings on the application form, evidence can be submitted under three different categories, Salaried Earnings; Independent Contractor and Self-Employed. It has been designed this way to help you submit the right evidence to support your claim for previous earnings. The evidence required is different for each category and you must determine which category to use. The type of evidence you have available will help you to determine which best fits your circumstances.

We cannot advise on your employment status but there are some guidelines which you might find help you.

If you operate as a business or as a limited company you will fall into the self-employed category.

If you are an independent contractor you may consider yourself to be self-employed because you do not have continuity of employment with a single employer, but you may only be able to provide some of the required evidence from the self-employed evidence list and some from the employed salaried evidence list. To help cater for this we have created a specific category for Independent Contractors (e.g. some IT Consultants, Freelance Journalists, Artists, Management Consultants etc.)

You might find it helpful to refer to the H.M. Revenue and Customs (HMRC) definition of an independent contractor to help you - Information on employment status for NIC can be found on the HM Revenue and Customs website, at http://www.hmrc.gov.uk under the section on Intermediaries Legislation IR35, found on the A-Z list via the site map on the HMRC website.

According to the above I would be classified as "self-employed".

Therefore I plan to supply:

- Applicant’s Income Tax return:
- Applicant’s bank statements:
- Copies of contracts totalling the full amount payable to the individual together with corroborating invoices detailing your payment.

Can someone with experience of operating a Limited Company provide any advice? Will the above be suffice?

[new2waix]

Does anyone agree with the above?

[ens]

how do I classify myself? Am I:
- Salaried earnings?
- Independent contractor?
- Self-employed?


either , depends on what documents you can provide

i think you are under salaried simply because you get your payslips!

Independent contractors dont get payslips only work on invoices!

So if you get payslips you will also recive P60 end of year form. Do you remember filling in a P45? Are you under any umbrella company(for your contract)

Regards
BigB

HO in guidance says ...

...as an independent contractor you MAY NOT have wage slips covering the period you are claiming points for... you must THEREFORE provide specified ALTERNATIVE documents to confirm the total amount...

but HO there NEVER said contractors cannot submit wage slips..

[ens]

Previous Earnings - Help me get this right!

I will be claiming 45 points for this section. It is clearly the most "crucial" part of my application. I am however unsure on what section to complete and therefore what documentation to present. I have also heard a few contractor rejection stories that I truly want to avoid!

what were those stories? what was the problem?

[new2waix]

Uh, still waiting on my P60! Still don't feel confident with all my paperwork...

According to HM Revenue, if you are employed by a limited/composite company you are considered "employed".

However, my P60 will only show a portion of my actual income. The majority of my income is paid to me ad a loan payment.

What is acceptable evidence to explain the difference between my P60 and actual income?

P60 will show £10k. Loan payments are £40k+ but not included on P60...

Help?!

[auzaman]

hi,
I have to show about 20000 pounds of earning to get my HSMP Visa extended.But the problem is I have earned this amount by working in Sainsburys and my job do not require any high skills.Is it OK ??or the Home Office will not give me points for my earnings?

[paramjit2k]

How do HO calculate the currency conversion? I know from some post I've read that www.xe.com is used. Does the case worker take average for the entire year or the current currency rate for conversion?

Hi Bigbrother,

Wht your are misguiding regarding conversion rate used?

According to HO and CW manuals, it is the exchange rate on date of last payslip or last date of claimed period......


Hemal, dont get confused i hv confirmed from the HO.....

[MyHSMPApplication]

Previous Earnings - Help me get this right!

I will be claiming 45 points for this section. It is clearly the most "crucial" part of my application. I am however unsure on what section to complete and therefore what documentation to present. I have also heard a few contractor rejection stories that I truly want to avoid!

I work at a large European company (XYZ) as an analyst. I effectively work through a job agency (ABC). I submit my timesheets to ABC Agency. They then invoice XYZ Company. The XYZ Company pays my Management Company (LC) (Limited Company type setup). I receive payslips from ABC Agency and Management Company.

Firstly, how do I classify myself? Am I:
- Salaried earnings?
- Independent contractor?
- Self-employed?

Secondly, (depending on the answer above), what "special" documents do I need?
- Some people have mentioned problems with discrepancies between documents. How can I ensure all income is justified and balances out?

I can provide payslips, bank statements, tax return, work contract, letter from ABC Agency and letter from LC Limited Company. I cannot provide timesheets (as I no longer have these documents).

Any advice?

---------------------------------------------
3. Previous earnings from your work
---------------------------------------------

Salaried earnings – required evidence:
- Income Tax return covering period claimed for:
- Original wage slips covering period claimed for:

Independent contractor – required evidence:
- Income Tax return covering the full period claimed for:
- Copies of contracts over the period claimed for showing the full amount of earnings claimed:
- Invoices to cover the period claimed for showing the full amount claimed:
- Bank statements to cover the period showing the full amount claimed:

Self-employed - required evidence:
- Applicant’s Income Tax return:
- Applicant’s bank statements:
In addition:
Either
A)
- Company audited accounts and company tax return (2 documents):
OR
B)
- Unaudited business/management accounts confirming the total amount claimed plus either:
- Business bank statements together with a business tax return (2 documents)
OR
- Copies of contracts totalling the full amount payable to the individual together with corroborating invoices detailing your payment.

Any luck with your application? I am in the same situation as yours. I.e. p60 showing 10k and the remaining amoutnof 40k being shown as dividends. I am not sure as to what documents should one provide in this case?
Do help.
Cheers
Pg

[contractors_in_uk]

Hi guys,

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We accountants who help the freelance IT contractors with their tax planning. We provide end to end limited company services for contractors working in the UK.

After the introduction of the finance bill of 2006 the only viable and tax efficient option for the UK contractors is the limited company.

We provide the following service:
- Limited company registration, PAYE and VAT registration
- Management accounts for your company
- Monthly/Weekly Payroll
- Business bank account help
- year end returns - company, employers and corporation tax

Essentially all the services a freelancer needs. And at a very affordable prices.. Its just £974. Also we are accountants with years of experience in this field and not an Umbrella or Composite company operator.

If you are interested the please contact me.

Regards,
Sandeep!