Tier 1 general migrant extension self employed please help

[gaganjyot]

hi,

my tier one general extension in may 2012

I was employed till 9th march 2011 and then now i am working as self employed doing energy sales on commission only. my question is regarding being self employed what documents will i need to provide evidence of income. can anyone tell me all docs required.

Also is it better to be employed or seld employed. which one is easier to get all docs ready.

I can tell this company whom i work for as commission based to employ me and they can put me on a tax code... so i have both options which one would be better ?

I tried to search a lot on the forum but had to open a new thread...

thanks

[Sushil-ACCA]

to be self employed

u can be a sole trader

for this u need UTR PERSONAL / NI contribution

business accounts
Sales summary
income certificate


or ltd company

utr company

Business a/cs
business Bank statements
sales summary
income certificates
Dividend Vouchers
for more details u can speak to an accountant

[gaganjyot]

i have not registered any company. have jus registered as self employed cos i work on commission based sales and no business account. my wage gets paid into my personal account thru bank credit and also i have self billing sales invoice to the company i work for doing sales.... is that fine.. thanks

[Sushil-ACCA]

depends on yr requirements of income for HO

IF IT IS MORE THAn 15,000.00 than u should go for company if less than £15,000.00 than sole trader is ok for tax point of view

[gaganjyot]

well i need to show 26000 for the next 12 months .. so i will be earning this in next 12 months thru just commission based sales... will this be my gross profit cos its just commission i have made no investment nothing in business...

[Sushil-ACCA]

i have already replied u will be better of by £1500.00 if u have ltd company

[rpsarangi]

sole trader can earn any amount but you need the proof. I mean you need proper statements to prove the earnings , invoices, proff from HMRC that you are self employed and tax document from HMRC along with the NI contributions bill. And your personal current account is all right to operate I think .. I think its ok.

[geriatrix]

hi i am in tier 1 general migrant visa since 14 may 2009... i have to extend my visa by next year may 2012. Now my query is i am a sales person doing door to door sales for a company and i am self employed on commission based. i will be earning about 27000 pounds in commission as thats what i showed as my earning when i was employed and i applied my tier 1 visa. I want to know if its all commission what would my earning be considered is it 27000 or whatever its after tax that means 20% tax on 27000 and less the tax net earning. I am fully confused and i need help badly as i am loosing time day by day and soon my extension will come close. if i need to show 27000 for extension how much should i earn please let me know. is it net 27000 i have to earn ? or gross

i have already registered self employed with hmrc since 15th march 2011

Also do i need to open a company ... is it mandatory ? If yes how do i do that how do i register can i get a link please. If i am the only person in my company and just work from home i mean my office address will be home is that fine.

currently i get paid thru BACS in my personal account and my sales invoices are in my personal name.

I know its lots of questions but i really need help from seniors here.. pls

It seems you are operating as a sole trader. In that case, your personal income is restricted to the "net profit" of the business. e.g. - if total commission = gross profit of the business, then your personal earnings / income = net profit of the business.

Whether you wish to operate as a sole trader or as a director of a (self-owned) private company is your choice, and perhaps, which option may save you money on taxes may influence your choice. Consult a "competent" accountant for further expert guidance.