Query about for previous earnings for Tier-1 for Contractor

[arvinds210]

I am based in the UK and I am on Tier-1 Visa (General). Currently I am
working as a contractor in the UK and using an umbrella company to process my payslips and provide me payment of my monthly pay.

The umbrella company provides me payslip in following form:


1. Monthly invoice income: � XXXXX (This is what I am actually earning per month but the umbrella company is showing it as her invoice income in the payslip)

2. Administration cost : �XXXXX

3. Employer's NI (National Insurance) : � XXXXX

4. Gross monthly taxable pay : � XXXX (Monthly invoice income -
administration cost - Employer' NI)

5. PAYE tax : �XXXXXX

6. Employee's NI : � XXXXXX

7. Net monthly pay : � XXXXXX ( Gross monthly taxable pay - PAYE tax - employee's NI)




I am planning to apply for extension of my tier-1 visa (general) and will
use the payslips as one of the supporting documents for my previous
earnings. So my query is whether Home office will consider the figure provided above at point 1 or at point 4 as my monthly gross pay .

[T90]

Umbrella company is paying you salary, so it will be gross pay...

[arvinds210]

Actually this is not the case. I am earning the whole invoice income. (My contract shows my daily rate and timesheets show the number of actual working days. But the umbrella company is raising invoice to the client on my behalf. Since legally I am employee of the umbrella company, so they need to pay employer NI and they are deducting it from the invoice amount and then showing net amount as my gross pay.

[keemgreeny]

Please don't make a mistake into believing that the amount raised on your behalf by the umbrella company is your 'actual' gross pay. Your actual gross pay would be the gross pay on which tax has been deducted and that is what the UKBA takes into account. It is usual to see two 'gross pay' on payslip relating to umbrella companies. You should opt for the lower band of gross pay on the payslip in any event.