CONFUSED: Umbrella company OR Limited Company ???

dev106 wrote:Hello all,

I am planning to apply for my Tier-1 (General) Visa as my current
PSW visa is going to expire very soon. I’ve got all the max points which I can claim for Age, Qualification, and Maintenance of funds. But for my previous earning I am stuck in quandary. I work as a contractor engineer contracting through a giant limited company which pays me weekly I am on weekly £610 net income. By calculating the same amount for 34 weeks I cross £20K (minimum gross earnings for a person to get a HSMP which




Was setup by home office), but in my pay slip instead of taxable gross being £20K its just £9K because of the expenses I am reimbursed (Food, Travelling, etc...) Of being a contractor. But all my invoices clearly show my net income is £610. The giant limited Company which runs my payroll used to pay me through the national minimum wage (5.75 per hr) and add all the extra stuff to it like holiday pay, bonus, and expenses. This minimum wage is showed as my gross payment on my pay slip and if I calculate for 12 months then it won’t be even half of what I need.
As per the home office rules and regulations in order to get HSMP, the information mentioned on the pay slip for the last 12 months must show that Gross income must be £20000GBP or even more.
When I’m getting my pay slips, the limited company has mentioned all the extra information like holiday pay, bonus, expenses etc, but I came to know that the HO is concerned only with the gross income but not the net income that is mentioned on the pay slip.
Now, I have started a new contract and would like to run my payroll as per the HO rules and regulations. For that I’m really confused that whether to go with a limited company or set up my own limited company so that the accountant produces all the required information as per the needs of HO.
Friends, plz suggest me which could be the best way in order to get my HSMP easily.

Regards,

raj

Sushil-ACCA wrote:

dev106 wrote:Hello all,

I am planning to apply for my Tier-1 (General) Visa as my current
PSW visa is going to expire very soon. I’ve got all the max points which I can claim for Age, Qualification, and Maintenance of funds. But for my previous earning I am stuck in quandary. I work as a contractor engineer contracting through a giant limited company which pays me weekly I am on weekly £610 net income. By calculating the same amount for 34 weeks I cross £20K (minimum gross earnings for a person to get a HSMP which




Was setup by home office), but in my pay slip instead of taxable gross being £20K its just £9K because of the expenses I am reimbursed (Food, Travelling, etc...) Of being a contractor. But all my invoices clearly show my net income is £610. The giant limited Company which runs my payroll used to pay me through the national minimum wage (5.75 per hr) and add all the extra stuff to it like holiday pay, bonus, and expenses. This minimum wage is showed as my gross payment on my pay slip and if I calculate for 12 months then it won’t be even half of what I need.
As per the home office rules and regulations in order to get HSMP, the information mentioned on the pay slip for the last 12 months must show that Gross income must be £20000GBP or even more.
When I’m getting my pay slips, the limited company has mentioned all the extra information like holiday pay, bonus, expenses etc, but I came to know that the HO is concerned only with the gross income but not the net income that is mentioned on the pay slip.
Now, I have started a new contract and would like to run my payroll as per the HO rules and regulations. For that I’m really confused that whether to go with a limited company or set up my own limited company so that the accountant produces all the required information as per the needs of HO.
Friends, plz suggest me which could be the best way in order to get my HSMP easily.

Regards,

raj

Only taxed income r considered by HO , YR employer have paid TAX AND nI on 9k so u cant claim 20 K .

alex2010 wrote:

Sushil-ACCA wrote:

dev106 wrote:Hello all,

I am planning to apply for my Tier-1 (General) Visa as my current
PSW visa is going to expire very soon. I’ve got all the max points which I can claim for Age, Qualification, and Maintenance of funds. But for my previous earning I am stuck in quandary. I work as a contractor engineer contracting through a giant limited company which pays me weekly I am on weekly £610 net income. By calculating the same amount for 34 weeks I cross £20K (minimum gross earnings for a person to get a HSMP which




Was setup by home office), but in my pay slip instead of taxable gross being £20K its just £9K because of the expenses I am reimbursed (Food, Travelling, etc...) Of being a contractor. But all my invoices clearly show my net income is £610. The giant limited Company which runs my payroll used to pay me through the national minimum wage (5.75 per hr) and add all the extra stuff to it like holiday pay, bonus, and expenses. This minimum wage is showed as my gross payment on my pay slip and if I calculate for 12 months then it won’t be even half of what I need.
As per the home office rules and regulations in order to get HSMP, the information mentioned on the pay slip for the last 12 months must show that Gross income must be £20000GBP or even more.
When I’m getting my pay slips, the limited company has mentioned all the extra information like holiday pay, bonus, expenses etc, but I came to know that the HO is concerned only with the gross income but not the net income that is mentioned on the pay slip.
Now, I have started a new contract and would like to run my payroll as per the HO rules and regulations. For that I’m really confused that whether to go with a limited company or set up my own limited company so that the accountant produces all the required information as per the needs of HO.
Friends, plz suggest me which could be the best way in order to get my HSMP easily.

Regards,

raj

Only taxed income r considered by HO , YR employer have paid TAX AND nI on 9k so u cant claim 20 K .

Dear Sushil,

Please kindly give some advice for my case.

I have 25% shareholding in a ltd company and I am not the director. I am one of the managers and want to claim my points as a salaried employee of the ltd company. I received my payslips monthly and the money was paid into my bank account by the company directly. The company pays PAYE for me.

Would it be sufficient if I supply 12 consecutive months payslips, 12 months bank stmts, and a cover ltr from the chartered accountant confirming my salary on behalf of the ltd company. Do you think I need to also provide a ltr from CA to confirm my shareholding of the ltd company?

1. IN CASE OF SALARY NO accountants letter required , pay slip and bank statments r enough .

2. if you claim profit from company or dividend from company than
a. company accunts b company sales sumary c Net profit statemet of company and company banks statements r required


In the current turbulent economic environment, our business is making a loss. so we have a loss in p/l and balance sheet, and our CA have only provided annual account to Mar 2008. Do I need to supply P/L, Balance sheet, business bank stmts (we have a 20k overdraft but unfortunately we are using it regularly ) as an employee of the company? I will not submit a divident voucher as we are not making a profit.

As homeoffice say, 'Umbrella Companies
Where the applicant is operating as one of a number of shareholders (often known as an Umbrella Company), without being a Director, they may not be able to provide company bank statements. This may be for reasons of confidentiality with regard to the disclosure of earnings of other shareholders. A covering letter should be provided by the applicant’s accountant to explain this where appropriate. The corroboration of earnings evidence should still be possible through the applicant’s personal bank statements and an accountant’s letter.'

Thank you very much for your help! I look forward for your reply.

Kind regards

Alex