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net or gross earnings - self employed
Posted: Tue Jul 31, 2012 10:40 pm
by KD1
Hi,
Am filling in my SET (o) form as a self employed Tier 1 migrant.
What should the earnings claimed be based on?
Option 1 - Net salary + gross dividend
or
Option 2 - Gross salary + net dividend?
I am fine on the points scored on either basis but wanted to check the correct procedure.
Any answers appreciated.
Thanks.
Re: net or gross earnings - self employed
Posted: Wed Aug 01, 2012 12:57 pm
by ryan2020
KD1 wrote:Hi,
Am filling in my SET (o) form as a self employed Tier 1 migrant.
What should the earnings claimed be based on?
Option 1 - Net salary + gross dividend
or
Option 2 - Gross salary + net dividend?
I am fine on the points scored on either basis but wanted to check the correct procedure.
Any answers appreciated.
Thanks.
option 2
Posted: Wed Aug 01, 2012 1:01 pm
by KD1
Thanks Ryan.
Appreciate your help.
Posted: Wed Aug 01, 2012 1:02 pm
by tier1Reading
Neither... the correct answer is:
Gross Salary + Gross Dividend.
It means you can include Tax Credits of the dividend as your income.
Posted: Wed Aug 01, 2012 1:04 pm
by tier1Reading
The caseworkers should consider the gross dividend paid to the applicant. Where a breakdown of the dividend payments is given on the pay advice, the gross dividend is the net dividend payment plus the tax credit stated.
Source:
http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary
Posted: Wed Aug 01, 2012 2:13 pm
by ryan2020
tier1Reading wrote:Neither... the correct answer is:
Gross Salary + Gross Dividend.
It means you can include Tax Credits of the dividend as your income.
If you have taken 1000 pounds from company account to your personal account. You have to calculate 1000 figure. i don't know its gross or tax credit.
Posted: Wed Aug 01, 2012 2:27 pm
by tier1Reading
ryan2020 wrote:
If you have taken 1000 pounds from company account to your personal account. You have to calculate 1000 figure. i don't know its gross or tax credit.
No.... if I take £1000 from my company, then I can show £1000 + 111.11(tax credit) = 1,111.11 as my total earnings.
http://www.hmrc.gov.uk/taxon/uk.htm
Posted: Wed Aug 01, 2012 2:37 pm
by ryan2020
tier1Reading wrote:ryan2020 wrote:
If you have taken 1000 pounds from company account to your personal account. You have to calculate 1000 figure. i don't know its gross or tax credit.
No.... if I take £1000 from my company, then I can show £1000 + 111.11(tax credit) = 1,111.11 as my total earnings.
http://www.hmrc.gov.uk/taxon/uk.htm
i don;t know i have counted 1000for example above and it works 2 times