ILR - Self employed - Urgent

waqarsunny · Post by **waqarsunny** » Thu Aug 15, 2013 1:48 pm

Hi, I am applying for ILR some time next week (after 19th Aug 2013) completing the route of HSMP 2 year, 3 year changed to Tier 1 General.

For the last 16 months I have been self-employed (contracting) and am sending the following documents:
1- Bstatements, Statement of invoices from accountant + Contract
2- Copy of HMRC submitted accounts (due in Jan 2014) showing my earning of £40000+
3- LIUKTest Pass for myself and depandant

My question is that my earning as self employed is just over £40000 and I am wondering if the Home office is going to consider this as my earning or are they going to consider £40000 minus any expenses which makes my taxable income to £37000? This is important as this effects the points scoring for the ILR and considering I will get no points for the Language (Life in UK Test).

Please reply urgently. Thanks

Post by **geriatrix** » Thu Aug 15, 2013 2:03 pm

I am no finance expert but how can you arrive at personal income without taking out business expenses from business income?

I believe what you really mean by "my earning £40K" is - "business earnings £40K without deducting business expenses(£3k)"!

waqarsunny · Post by **waqarsunny** » Thu Aug 15, 2013 2:48 pm

Hi..Yes thats is true. My invoiced amount is over £40,000/-. My business expenses were £3000/- (I am self-employed so I work with a Trading name). There is no legal requirement to have a Business account but I have got one anyway (I can use my personal one if I want to). So my question again is that being self employed, is HO going to give me points for earning above £40,000 or after deducting expenses which obviously will reduce the earned amount to £37000 which is (Gross earning - expenses)?

Or in more simpler terms Is my Gross earning be considered by home office or my Net income?

Thanks

Waqar

Post by **geriatrix** » Thu Aug 15, 2013 3:24 pm

Gross "personal" income.
How can business expenses be part of your personal income? Even if you retain your profits in the business, your personal income is limited to (full or share of) the net profits of the business.

You need to read the policy guidance.

waqarsunny · Post by **waqarsunny** » Thu Aug 15, 2013 5:05 pm

I feel like a right Muppet!!!. Thanks for stating the obvious.....Will post the result once I have an answer.

Post by **Amber** » Mon Oct 14, 2013 5:42 pm

waqarsunny wrote:Hi, Applied on 4th Sept, Ack. 06 Sept 2013...Biometric letter rec. 22 Sept 2013. I have given my biometric data on 28th September. Any one knows how long it would take for the HO to decide after applicant has provided the biometric data?

Regards

Post by **Amber** » Mon Oct 14, 2013 5:42 pm

Up to 6 months.

Wanderer · Post by **Wanderer** » Mon Oct 14, 2013 6:05 pm

If you are contracting (as i do) your earnings are nothing to do with the company income.

Your earnings are purely your salary and dividend if you take such.

The income generated by your contracting Ltd isn't yours.

Speak to your accountant and present the salary slips and dividend vouchers...

silverline · Post by **silverline** » Mon Oct 14, 2013 6:53 pm

Relevant income for UKBA purposes:

Self-employed - Net profit before tax = Income minus business expenses.

Dividend - Gross amount of dividend (i.e. without tax deduction)

Profit of Ltd company - Retained earnings within business before tax (after dividend)

raholptl · Post by **raholptl** » Mon Oct 14, 2013 7:52 pm

Wanderer wrote:If you are contracting (as i do) your earnings are nothing to do with the company income.

Your earnings are purely your salary and dividend if you take such.

The income generated by your contracting Ltd isn't yours.

Speak to your accountant and present the salary slips and dividend vouchers...

Hi wanderer, can you please tell what documents are required for a contractor? Thanks in advance.

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ILR - Self employed - Urgent

ILR - Self employed - Urgent

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