Hi,
Im going to be extending under Tier1 very soon.
For my previous income proof, I requested my umbrella company to send across a letter stating my gross and net income for each month of my claim period.
Here is what I got....
The gross income they stated on the letter is my total invoice amount.
i.e if I work 20 days, and my rate is 300, then my gross as per them is 20*300 = 6000.
Though I claim about 1500 as expenses ( rent + umbrella company fees + travel )
My taxable income in this case is 6000-1500 = 4500.
I thought , and also from the previous posts, that this taxable income is actually the gross I need to state while sending my application.
But my umbrella company does not agree that is gross, and says that the amount they recieve from my client is my gross.
This is how they ended my letter
"We are a payroll company and are Mr XXX employer but he does not
work directly for us. We run a PAYE payroll for work that Mr XXX does
for a third party. Mr XXX earns a gross amount and through YYY’s
Umbrella division is able to offset certain expenses against his salary,
lowering his taxable pay so that he pays less tax. Our expenses are
dispensations as agreed with the inland revenue."
If I send my payslip along with this letter, they might see that Im including my expenses also in the gross and refuse my application.
One option is I send the letter from the umbrella company and not payslips, but then IM worried they might cross check with HMRC my taxable income for the months and find out the discrepency, or maybe call my employer and they will acknowledge that they set aside expenses from my gross for calculating taxable income, which means im including my expenses in gross again. And you know how these guys work, apply as much less logic as possible and go by facts !
Im quite confused now what I need to mention in my application.
As my payslip mentions clearly the expenses , and the taxable income and invoice amount clearly.
Can somebody help me with this please ?
Thanks a lot in advance.
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