Self employed earnings...urgent help needed.

[devig]

I am self-employed, i.e I own a company and I am applying for a Tier 1 next week. I don't know if it's last minute panick, but I have a few question.

The Border Agency guidelines says that it requires proof of earnings of a continuous 12 month period within last 15 months. I assume then that its ok if I am to give documents of the time between September 08 to Septmber 09.

The people who do my company's accounts are employed by the company itself. At the end of every financial year, the balancesheets and P&L accounts they prepare are audited by a chartered accountant from an audit farm and submitted to the tax authority. Since taxing happens at March every year, the accounts of April 08 to March 09 are audited, taxed and the audit farm has been able to give me an authitication letter about the net profit of that period on headed paper.

However, the accounts of Apil 09 till Sept 09 are done by my own accountants who are my employees. They can not be audited now as it is too soon for that. My accountants can give me an authintication letter, but it will be on my company's letterhead. Will that be acceptable? They can also give me a sales summary with the name and address of my clients, dates and amounts of payments received. It will be signed by my own accountant and of course not by the auditors. I can supply original invoices supporting these claims. Is it ok?

So basically these are the papers I have at my disposal.

1. Profit & Loss and Balancesheet of April 08 to March 09.
2. Letter of audit farm authenticating the above documents.
3. Tax Returns paper of April 08 to March 09.
4. Profit & Loss and Balancesheet of April o9 to September 09.
5. Letter from my accountant on my company's letterhead authenticating those.
6. Bank statements of business accounts from April 08 to current.
7. Trade License.
8. Details of my clients, dates and amounts of payements summarized by my accountant ob my company's letterhead.
9. Originals of invoices that I have sent to my clients.

Let me know if this is enough or something else is required. Do I need to explain all this on my cover letter?

Thanks much

[myegin11]

This is a gray area where no one would make definite comments.

If you are employed in your company and paying yourself salary and dividends, and paying class 1 NI contribution, then I would say you can apply as 'Employed'.

Self-employment is something else where you register yourself to HMRC in this capacity and pay class 2 (and class 4 if required) NI contributions. If you check your personal tax return forms, there is a question regarding this asking if you are self employed (Question 2). I reckon, your accountant ticks the answer 'No'.

I also work through my own limited company and I applied as 'Employed'. However, I provided company related documents just in case and mentioned in my cover letter that they were provided merely to illustrate business activity of my company. In the application form I claimed my personal earnings as the total of salaries and dividends I paid myself from my company. And I provided payslips, dividend vouchers and corroborating bank statements (complying with the guideline rules) as main evidence.

I can not tell you the decision as I am still waiting for it (hopefully will be a positive one). I have read previously a thread where the case was like this and the application was approved.

As the guideline says, it is in your discretion about in what category you want to apply. The above reflects only my view on the subject.

[leoseptember]

Hi Devig,

Any news on your application? Hope it's approved, coz I'm basically in the same situation.

rgs,
leo

[skomati]

hi, u are claiming points for 13 months, have a look carefully

[Sushil-ACCA]

I am self-employed, i.e I own a company and I am applying for a Tier 1 next week. I don't know if it's last minute panick, but I have a few question.

The Border Agency guidelines says that it requires proof of earnings of a continuous 12 month period within last 15 months. I assume then that its ok if I am to give documents of the time between September 08 to Septmber 09.

The people who do my company's accounts are employed by the company itself. At the end of every financial year, the balancesheets and P&L accounts they prepare are audited by a chartered accountant from an audit farm and submitted to the tax authority. Since taxing happens at March every year, the accounts of April 08 to March 09 are audited, taxed and the audit farm has been able to give me an authitication letter about the net profit of that period on headed paper.

However, the accounts of Apil 09 till Sept 09 are done by my own accountants who are my employees. They can not be audited now as it is too soon for that. My accountants can give me an authintication letter, but it will be on my company's letterhead. Will that be acceptable? They can also give me a sales summary with the name and address of my clients, dates and amounts of payments received. It will be signed by my own accountant and of course not by the auditors. I can supply original invoices supporting these claims. Is it ok?

So basically these are the papers I have at my disposal.

1. Profit & Loss and Balancesheet of April 08 to March 09.
2. Letter of audit farm authenticating the above documents.
3. Tax Returns paper of April 08 to March 09.

not required

4. Profit & Loss and Balancesheet of April o9 to September 09.
5. Letter from my accountant on my company's letterhead authenticating those.

on acctns lett head not on yr compant leter head

6. Bank statements of business accounts from April 08 to current.
7. Trade License.

not required - addinal item

8. Details of my clients, dates and amounts of payements summarized by my accountant ob my company's letterhead.

on acctn letter head , not on yr company

9. Originals of invoices that I have sent to my clients.



Let me know if this is enough or something else is required. Do I need to explain all this on my cover letter?

Thanks much