Contract/Freelancer Tier1 - Letter of Accountant

[paperwork]

Hello friends

I have earlier raised questions regarding freelace issues on Tier 1 application primarily for accountants letter. But have never received any feedback. I am trying to ask few more questions. Hope this time i get few answers.

Experienced member please have a look and guide if this sounds good.

Here below is a letter drafted by Accountant.

1) I want to know if this letter sounds good?

2) Expenses. I don't have to spend anything on a project. I just get paid for my expertise on the subject and the client hires out everything which is required for the job. ON Expenses front should i give them a detailed breakdown of where is the money spent or just a balpark figure.

3) I am submitting a letter from clients stating the amount i have been paid in the last year with details of cheque no., paid amount, tax deduted at source.

4) I am also submitting invoices for which payments i have recieved. these invoices are stamped by the companies issued to.

5) The financial year on which tax is paid is different (April - March) than the details of earning am submitting (Jan - Dec) Should i send my Income tax return of last year which will not match with the income which i am claiming now.


*****
To
The Assessing Officer
British High Commission



Sub: Confirmation of the Earnings of ABCD

Sir/Ma’m,

This letter is to confirm the earnings of ABCD from the period of 20th January 2008 till 19th January 2009

We act as the accountant of ABCD, a sound recordist by profession.

Mr. ABCD works as a freelancer, primarily in the field of Advertising. He is hired for his knowledge, skill and experience. The assignments are of short-term duration, which involves only a couple of days on a project.

Mr. ABCD's professional fee is based on his skill and time spent on the project. Therefore, the expenses incurred are not project specific but are in general, to further his knowledge, keep him updated and enhance his skills, etc.

The payments received by Mr. ABCD are after the deduction of the Tax at Source (also known as TDS).

1) The bank statements reflect the professional receipt of Rs. 10,00,971/-

2) The tax deducted at source is Rs.1,01,529/-

3) Therefore the Total Professional Income is Rs. 11,02,500/-


4) The expenses comes upto the amount of Rs. XXXXX

5) The Gross amount of Mr. ABCD for the above mentioned duration is Rs. (point 4 minus point 3)

The details of the receipt and the expenditure are attached along with this letter

Feel free to contact me if you have any questions or clarifications.

Sincerely,
******
friends,
I am attaching a paper showing following details (column wise)
date of receipt of cheque. cheque date/bank, amount, Invoice no, company name, Bank name


Should I also attach a list of expenses showing the heads like
1) conveyance
2) travel
3) Postage
4) Research
5) Support staff salary


Please let me know how i can make this draft better if its not.

Cheers!

[montysingh]

Hello friends

I have earlier raised questions regarding freelace issues on Tier 1 application primarily for accountants letter. But have never received any feedback. I am trying to ask few more questions. Hope this time i get few answers.

Experienced member please have a look and guide if this sounds good.

Here below is a letter drafted by Accountant.

1) I want to know if this letter sounds good?

2) Expenses. I don't have to spend anything on a project. I just get paid for my expertise on the subject and the client hires out everything which is required for the job. ON Expenses front should i give them a detailed breakdown of where is the money spent or just a balpark figure.

3) I am submitting a letter from clients stating the amount i have been paid in the last year with details of cheque no., paid amount, tax deduted at source.

4) I am also submitting invoices for which payments i have recieved. these invoices are stamped by the companies issued to.

5) The financial year on which tax is paid is different (April - March) than the details of earning am submitting (Jan - Dec) Should i send my Income tax return of last year which will not match with the income which i am claiming now.


*****
To
The Assessing Officer
British High Commission



Sub: Confirmation of the Earnings of ABCD

Sir/Ma’m,

This letter is to confirm the earnings of ABCD from the period of 20th January 2008 till 19th January 2009

We act as the accountant of ABCD, a sound recordist by profession.

Mr. ABCD works as a freelancer, primarily in the field of Advertising. He is hired for his knowledge, skill and experience. The assignments are of short-term duration, which involves only a couple of days on a project.

Mr. ABCD's professional fee is based on his skill and time spent on the project. Therefore, the expenses incurred are not project specific but are in general, to further his knowledge, keep him updated and enhance his skills, etc.

The payments received by Mr. ABCD are after the deduction of the Tax at Source (also known as TDS).

1) The bank statements reflect the professional receipt of Rs. 10,00,971/-

2) The tax deducted at source is Rs.1,01,529/-

3) Therefore the Total Professional Income is Rs. 11,02,500/-


4) The expenses comes upto the amount of Rs. XXXXX

5) The Gross amount of Mr. ABCD for the above mentioned duration is Rs. (point 4 minus point 3)

The details of the receipt and the expenditure are attached along with this letter

Feel free to contact me if you have any questions or clarifications.

Sincerely,
******
friends,
I am attaching a paper showing following details (column wise)
date of receipt of cheque. cheque date/bank, amount, Invoice no, company name, Bank name


Should I also attach a list of expenses showing the heads like
1) conveyance
2) travel
3) Postage
4) Research
5) Support staff salary


Please let me know how i can make this draft better if its not.

Cheers!

i want to share some information regarding your case. email me at montisinghgill@yahoo.com.

[muruga14]

Hi paperwork the letter looks ok, in the letter mention about how you got paid (ie. cash or bank account credit or cheque/DD), along with this letter make sure you add the statement of accounts for the earning period claimed.

[paperwork]

Thanks Muruga,
I hope it works.
When you say statement of accounts... does it mean a list which has columns with dates on the payment is received, Dates of cheque/bank, Company which issued, Invoice nos.

I want to know what figure I should be using to calculate my previous earning, In this situation of freelance (Contract).

I have
Total Income received from client

Then NET INCOME on which I would pay tax After deducting the EXPENDITURE incurred for professional use.

Please throw some light on it.

Cheers!

[muruga14]

let me tell what i had with the acocuntants statement/ letter when i applied for Tier 1.

1. accountants letter
2. x months accounts statement
3. accountants approval statment for the income expenditure accountant.
4. accountants report on the unaudited accounts if you have not filed the tax returns yet.
4. profit & loss statement for the earning periods within last 12 months
including net sales and net profit.

[muruga14]

statement of account is your sales, profit and expenses statement. the guidance says they take only the profit for previous earnings if you show as selfemployed, you can still enter the total income received for claiming points. i claimed 40 points for total income received, if the case worker is satisfied he might award points for the total income else they will award points only for the net profit in the self employment.

[paperwork]

Thanks Muruga,

I am bit confused if I should consider myself Contractor or as Self employed. I am a freelancer, do a job, get my cheque.

* I asked letters from clients to give details of my payments amount/cheques/banks/date, etc.
* Got Invoices stamped from Clients
* Bank Statement

* I don't know why, Its been difficult to get CA write these letters. So I manged to get a letter confirming the total receipt based on bank statments and
It also states my net earning after deduction of Expenses.

As regarding TAX. Its not yet time to pay the tax. So I am not submitting any tax returns (they advise in the Guidance note not to) However, CA doesn't want to give any papers regarding tax. I just hope these papers are going to be helpful.

Thanks a lot Muruga.
Cheers!