Contractor- not self emplyed

[anu10]

Dear Members,

I first apologise for repeating this post many times. Still I have a confusion. I am working fultime and contracting in few other places. i have got signed contract with them. They pay me with either cheque or direct debit. But I am not running a business of my own so I don't raise invoices. In the policy document they don't categoise contractors. However in examples they say...

If the applicant is a contractor who does not operate either through his/her own company or as an employee, he/she may provide:
an accountant’s letter confirming a • breakdown of his/her gross and net earnings for the period claimed; and
personal bank statements clearly • highlighting all credit payments made to his/her account from employment undertaken during the earnings period claimed.

My question -Will it be OK If I produce bank statements and an accountants letter as two sources of contracting income proof?

many thanks.

[John]

It sounds to me that you are self-employed, and do indeed have a business.

What about tax on your earnings? In your country you surely need to return the income being generated by you?

[anu10]

It sounds to me that you are self-employed, and do indeed have a business.

What about tax on your earnings? In your country you surely need to return the income being generated by you?

I pay personal income tax. But do not disclose everything for obvious reasons. Infact I work for those companies on contract basis and I am on their pay rolls.

[John]

But you pay personal income tax on what basis? As a self-employed person? If so you clearly have a business!

Obviously not asking you to disclose any detail .... just the generalities.

[vinata]

It doesn't matter that you don't own the bussines, because you still have to pay tax on all your income. In the end of each tax year you have to submit an annual return where you specify all your employed and contractor income, pax already paid to the authorities and tax still due to be paid. You don't have to register yourself as a business man in this case, however, you do need to ring HMRC and ask them to register you as a contractor. They will assign you a unique ID number which you then use in your annual return. Believe me, this works.

[anu10]

But you pay personal income tax on what basis? As a self-employed person? If so you clearly have a business!

Obviously not asking you to disclose any detail .... just the generalities.

Thanks John.

I meant I have not disclosed full income im my tax returns. In that i have shown only my full time employment and litle income from other sources. In that case if I send tax returns, It will be much less income. On the other hand I mention my full time emp and one other place as part time on my tax returns. No self emplyed.

Appreciate your help on this.

[anu10]

It doesn't matter that you don't own the bussines, because you still have to pay tax on all your income. In the end of each tax year you have to submit an annual return where you specify all your employed and contractor income, pax already paid to the authorities and tax still due to be paid. You don't have to register yourself as a business man in this case, however, you do need to ring HMRC and ask them to register you as a contractor. They will assign you a unique ID number which you then use in your annual return. Believe me, this works.

Thanks. Unfortunately I'm not in UK currently.

[pkumar]

Please show all paper work mentioned in the guidance .....