Tier 1 extension : Earnings documents

[sureshep]

Hi all,

My 1st extension is due on Nov 15th 2011. I am planning to work out the things from now. Need your assistance in this regards.

Background of my case :
1) I worked for a IT contract in the month of Jan, Feb, March, April. I use to get the Net payment through Umbrella company to my bank account.

2) Now, I have recently registered myself as a Self employment and I would like to show the earnings proof for the above months. However, I am not sure what all documents (Invoice from my-side to umbrella, employment letter from umbrella, bank statements, payslips, dividends UTR etc.,) I need to prepare for this. Please share your experiences.

3) I need to show the earnings for 25 K. Since I worked as a contractor there is no gross salary for me. How much tax I need to pay for this amount and what about the NI tax payment ?

4) What are the documents need to be submitted for UK experience (Client ID card, employment letter from umbrella)

Looking forward to your kind and earliest responses.


Regards,

[reachren]

hi sureshp,

i was in the similar situation(Contractor+Self employed) some time ago.Below are my views to your questions and .Experts corret me if i am wrong.

1) Net payment to your bank account is good and make sure it is same as the net payment amount in your monthly payslip, if not you can be in trouble.

2)If you are with an umbrella company you dont need to register for self employment, UNLESS AND UNTILL you plan to do a second job for a different company who pays you an AMOUNT for the work done but not SALARY.

3)You as a contractor with umbrella company definitely has got gross salary.If you claim expenses through umbrella company your GROSS salary will be reduced a lot which is a threat for your extension because case worker take in account only your GROSS salary (not monthly INVOICE amount or monthly NET salary, in your payslip)

Tell your umbrella company to give you a detailed monthly payslip which will contain your GROSS salary mentioned.OR the Taxable Pay mentioned(if any) in your current monthly payslip is your GROSS salary.

4)The employment letter from your umbrella company will be fine for the UK experience support document.

If you are self employed aswell make sure you have the company letter (which states that you are working for them) and Accountant letter which confirms your GROSS salary, NET salary and the tax paid/or to be paid.

Good Luck