accountant's letter for contractor

[barbaraf]

Has anyone applied successfully for Tier 1 (G) as a contractor and used an accountant's letter? There is very little guidance about what that letter (as opposed to the self-employed letter) should say. Can you share an example of a successful accountant's letter? I've searched the forum and found people with similar questions, but no answers so far.
Thanks.

[schindler]

Has anyone applied successfully for Tier 1 (G) as a contractor and used an accountant's letter? There is very little guidance about what that letter (as opposed to the self-employed letter) should say. Can you share an example of a successful accountant's letter? I've searched the forum and found people with similar questions, but no answers so far.
Thanks.

My accountant letter had the listings of my salary(Gross and Net) details during the earnings period.
It had also listed all the dividend info during that peiod(again both Net and tax credits)

[barbaraf]

Thanks.
You mention salary. Did you apply as a contractor or an employee? And did you provide a month to month breakdown of gross and net?

[barbaraf]

Sorry to bug you, but could either of you guys who has used a letter successfully send me a copy? Our accountant is going out of town Thursday and he needs to sign it before my husband's appointment at the consulate Monday morning.
Thanks.

[matsnoel]

Hi folks - I am in a similar situation: Have a part-time job with a Bank and am planning to show the rest of the target amount through my `IT solutions' free-lancing work. I am assuming that:

a) I would be classified as a contractor
b) I need two supporting documents as evidence: Tax returns & An Accountants letter (along with my bank statements naturally).

Is this correct? Is there a need to show invoicing in any form? Finally, I would be happy to receive a copy of the accountant's letter.

Many thanks already.

Noel

[bunti]

hello guys,
i am a contract and successfully applied for my renewal and following were my docs for earning(I know i did send more than required form but just wanted to be safe).

1) Letter explaing income

*****************INCOME EXPLAINED.*******************
Dear Sir/Madam,
I am an independent IT Contractor who operators through my own limited company (XXXXX). I take gross salary of £833.33 per month and dividends on irregular intervals as per my requirements.
My Accounts, XXXXXXXX, calculate tax and NI (Employee and Employer) monthly and also prepare my salary slip. I myself then transfer my salary from my company account to personal bank account. Because of the travelling nature of my job, these transfers are not always on same date and sometimes delayed.
CLAIM Period: 1st Feb 2008 to 31-Jan-2009
1) Salary Income: Total Gross £9999.96
Salary Salary Net Gross Pay Period Pay Month Salary Salary Comments
Jan-08 Feb-08 XXX.XX 833.33 paid on 27-feb-08 (£XXX.XX) and correction on 2-Mar-08(£XXX.XX)
Feb-08 Mar-08 XXX.XX 833.33 paid on 27-feb-08
Mar-08 Apr-08 XXX.XX 833.33 paid on 4-apr-2008
Apr-08 May-08 XXX.XX 833.33 paid on 10-may-2008
May-08 Jun-08 XXX.XX 833.33 paid on 10-jun-2008
Jun-08 Jul-08 XXX.XX 833.33 paid on 6-jul-2008
Jul-08 Aug-08 XXX.XX 833.33 paid on 3-aug-2008
Aug-08 Sep-08 XXX.XX 833.33 paid on 7-sep-2008
Sep-08 Oct-08 XXX.XX 833.33 paid on 12-oct-2008 (£757.33) and correction on 14-oct-08(£XXX.XX)
Oct-08 Nov-08 XXX.XX 833.33 paid on 19-nov-2008
Nov-08 Dec-08 XXX.XX 833.33 paid on 10-dec-2008
Dec-08 Jan-09 XXX.XX 833.33 paid on 8-jan-2009

Total : XXX.XX 9999.96

Proofs: (a) Bank Statement (b) Salary Slip (c) Letter from account confirming gross salary.
2) Dividends Income: Total Net £ xxxxx.00
Date Net Dividend Gross Dividend

14-Apr-08 xxxx.00 xxxx.00
30-Jun-08 xxxx.00 xxxx.00
22-Aug-08 xxxx.00 xxxx.00
01-Jan-09 xxxx.00 xxxx.00

Total : xxxx.00 xxxx.00
Proofs: (a) Bank Statement (b) Dividend Vouchers (c) Letter from account confirming gross salary.


Additional Information
1) I run my own limited company and attaching my company following documents to show economic activity of my company
a) Copy of Company formation Certificate
b) Share Certificate in my name
c) Last 12 months invoice( one invoice still pending for payment)
d) Last 12 month company bank statement( last statement printed in branch on HSBC letter head)
e) Latest extension of my contract with my client with daily rate.
2) COPY OF 2 P45 Documents (old employers) and 1 P60 (xxxx xxxxx xxxxx) for tax year 2007-2008.


Point Claimed
Total Income: xxxxxx(Gross Salary)+xxxxxx(Net Dividends) = xxxxxx
Points Claimed: 40
Regards,
xxxxx

*************************************************************

2) Template of letter from Accountant(they printed on their letter head)

*************************************************************
*************************************************************
To Whom It May Concern






16 January 2009


Dear Sirs

Mr. XXX XXXXXX
Confirmation of earnings for the Year 01 February 2008 to 31 January 2009

I can confirm that we act as accountants and tax advisers to the above and have done so since December 2007.

I can further confirm for the above year Mr. XXXXXX was employed by XXXXX XXXXXXXX Limited at a rate of £9999.96 per year gross which was paid over net at XXXX.XX and is involved in the day to day running of the company.

He is also a 100% shareholder of the above company and has received dividends of £XXXXXX for the above dates.

I trust this is sufficient for your purposes; however, should you have any further queries, please do not hesitate to contact me.



Yours sincerely
Name of the accountant


**************************************************************************************************************************

3) other documents you must send
A) Salary slips
b) Vid. vouchers
c) personal bank account statement
-----
4) other documents you may send
a) company share certificate to show i own 100%
b) company activity( invoices, contract with client, company bank statement)
c) copy of old p45/p60

[paperwork]

Thanks Bunti your letter has been helpful to get some guidance from it.

In my case my income is from professional fees.

I am not sure if This income will be the one I should be calculating my Previous earning from or on the income on which I hve to pay tax.

I have to deduct expenses from my fees to arrive to taxable income. This is quite different from Salary cases.
Please throw some light.


Cheers!

[bunti]

1) are you operating thru a limited company?
2) if yes, how do you pay yourself from your company?

[paperwork]

Hi Bunti,

I freelance. No company, nothing. Its like Daily wages. I get a call - do a job - get my cheque, sooner or later, with TDS (tax deducted at source). Money goes in my Saving accounts.

Tax is calculated by deducting the expenses... like Travel, Loan, research, etc.

Should I say am self employed or Contractor?

Cheers!