Previous EARNING... confusion.. Contractor

[paperwork]

I am applying as a freelancer/contractor.

My Gross Total receipt from profession is lets say 10000/- amount.
After deducting the 4000/- expenses incurred in profession from the 10000/- amount.
The NET income comes to 6,000/-

Which Amount I should be using to calculate my earning.
is it 10,000/- Gross earnings
or 6,000/- Net earnings.

For self employed I think one has to calculate with net earnings. and for salary its gross earning.

Can some one tell what would it be for Contractors?


Thanks for ur time in advance.
Cheers!

[republique]

I am applying as a freelancer/contractor.

My Gross Total receipt from profession is lets say 10000/- amount.
After deducting the 4000/- expenses incurred in profession from the 10000/- amount.
The NET income comes to 6,000/-

Which Amount I should be using to calculate my earning.
is it 10,000/- Gross earnings
or 6,000/- Net earnings.

For self employed I think one has to calculate with net earnings. and for salary its gross earning.

Can some one tell what would it be for Contractors?


Thanks for ur time in advance.
Cheers!

Why would self employed have to use net earnings?
I want to know your reasoning

[vagabond4life]

Self employed : Net Earnings

Contractors : Net Earnings

Salaried : Gross Earnings

This is mentioned in the guidance note. Also refer to Sticky on Case workers manual. I have posted links to what a case worker will look in determining your income.[/b]

[republique]

Self employed : Net Earnings

Contractors : Net Earnings

Salaried : Gross Earnings

This is mentioned in the guidance note. Also refer to Sticky on Case workers manual. I have posted links to what a case worker will look in determining your income.[/b]

Exactly, check the guidance instead of guessing.
I am surprised, they state net for contractors since I did not and I was approved with gross.

[paperwork]

Thanks for replying.

It seems a lot of detail has been spent on Salaried applicant

I have gone through the Caseworker guidance for EVIDENCE and the Tier1 General Guidance.

I read in PARA 102 Page 20 of Teir1generalguidance.pdf refers to SALARIED applicant and

PARA 103 refers to self employed who has chosen to retain the profits in the business. It says 'we will only consider profits made during the 12-month earnings period for which the applicant is claiming'

There is no mention of CONTRACTOR. Only mention is the kind of documents one should submit as evidence.

In My case I have evidences (bank statement + letter from clients) of the gross earnings. For NET earning, Its only my Accountants statement which mentions about my net earnings after calculating the expenditure. There is no other source of supporting evidence to support the net income.

I wish it is the gross professional receipt and not the earning.
Cheers!

[paperwork]

I received the visa on the above case, as I had mentioned.
No letter was sent to me if they considered Net income or Gross income.

Both My gross and net was over 10K GBP plus country factor. I didn't get any letter explaining how I was awarded any points.

Hope all this helps anyone who is applying as Contractor. Feel free to write if any of you applicant need any inputs.


Cheers!