how to define the previous earning by Home Office?

[rifis2ug]

I will be claiming 40 points for "Previous Earnings" section here in Australia. It is clearly the most "crucial" part of my application. I have two questions need your kind help.

Firstly, I work at a company (XYZ) as a financial analyst, but I am a contractor through a job agency (ABC). I submit my timesheets to ABC Agency. They then invoice XYZ Company. The XYZ Company pays ABC Agency. I receive payslips and payment from ABC Agency. PLEASE NOTE THAT I DO RECEIVCE WAGE SLIPS FROM ABC AGENCY EACH WEEK AND AUTOMATIC INCOME TAX DEDUCTIONS FROM MY PAYROLL EACH WEEK AS WELL. We call it PAYG – PAY as you GO in Australia. I believe it is the same as PAYE - PAY as you EARN in UK. Is it correct? Hence, I can reasonable classify myself under “Salaried Employmentâ€

[rifis2ug]

Any comments??

[UKbound]

I had a similar situation working as a contractor through an agency. If they agency issues your paycheck and pays employer taxes on your behalf, then I would assume it is salaried employment. If you are responsible for paying personal taxes, and employer taxes, then I would assume that you are not in salaried employment. In my case (in the US), the company that handled my contract also had to pay unemployment tax, employer taxes, etc., and I was only responsible for personal taxes. They billed my company on my behalf, but also added a % above that. I received standard pay from the company acting on my behalf, ABC Agency in your example.

Your second question, it depends on what your salary is. If you are paid the same amount regardless, eg 90,000; no matter what; and you choose to spend it on a tax-deductible cost (education for example), then I would claim the 90k. If you are paid 70k, but your company is giving you 20k extra specifically for education then I would say that it is a benefit, so you should only claim the 70k that is your salary.

Hope that helps.

[jagacharaja]

OP - I don't have the credentials or knowledge to answer your second question but as for your first question, here's what I know: If you're working for a client but are receiving paychecks from another company (your employer) - i.e. client pays your employer who in turn pays you - you are considered a salaried employee (employee of ABC company from your e.g.) I can say this w/confidence because my case is similar to yours (I'm a consultant) and my HSMP app. was approved in Feb. My paychecks are under my employer company's name, not the client's name. Hope that helps you clarify at least your first question.