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How does a T1E to ILR applicant answer the SETO wages question?

Posted: Sun Jan 21, 2018 9:41 pm
by JohnOhn
Applying for ILR soon and just saw question "5.3 Are you working in the UK?"

I assume we check "yes" since we are self-employed and/or the director of a company (and sending in self-assessment tax returns each year).

But then it says "If so, what is your pay each month after income tax and other deductions?" and they want an amount.

As a self-employed person my monthly income is not fixed and can vary due to a number of reasons, including sales, workload, and when clients decide to pay (the last one being the biggest variable). So should I just average my income for an entire tax year (the figure I report on my tax return) and then just deduct the taxes HMRC says I must pay from that figure and then divide that figure by 12 and use that as the answer?

Another way to explain this issue:

As a self-employed person one month I may make £6000, the next month £2500, the month after that £4300. Let's say over an entire tax year I make £60,000. After taxes lets say my take-home pay is £37,000. £37k divided by 12 months would be an average of £3083 a month. Is that the figure I should report in the box for question 5.3?

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Sun Jan 21, 2018 9:55 pm
by marcnath
This is not a critical question for T1E.

So, your solution works as well as any other.

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Sun Jan 21, 2018 11:25 pm
by PeterLove2008
Any pay is before tax not after tax.

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Mon Jan 22, 2018 12:36 am
by JohnOhn
PeterLove2008 wrote:
Sun Jan 21, 2018 11:25 pm
Any pay is before tax not after tax.
Yes that is true as a self-employed person.

But the SETO application asks what your average monthly pay is "after income tax and other deductions?"

So for the SETO form they want you to list your average monthly takehome pay after taxes would be taken out from that figure.

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Mon Jan 22, 2018 1:52 pm
by zimba
The income question is not important for Tier 1E applicants. Do not focus on it

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Mon Jan 22, 2018 6:23 pm
by ukbusiness2016
Hi,

Sorry to add to the topic although the initial question is not mine. However, if I am not paying myself anything currently (a client owes me a large sum and we are currently restructuring his debt) can I put in zero as the response? I would not want to lie and would ideally like to stick to my last self assessment.

Please advice. Thanks.

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Mon Jan 22, 2018 6:42 pm
by marcnath
Yes, of course. It is never a good idea to put incorrect info in these forms, however minor

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Mon Jan 22, 2018 8:28 pm
by ukbusiness2016
marcnath wrote:
Mon Jan 22, 2018 6:42 pm
Yes, of course. It is never a good idea to put incorrect info in these forms, however minor
So putting 0 in my income will have no adverse effects right? I do have a significant sum on money in my personal accounts to sustain myself.

Re: How does a T1E to ILR applicant answer the SETO wages question?

Posted: Mon Jan 22, 2018 10:01 pm
by marcnath
ukbusiness2016 wrote:
Mon Jan 22, 2018 8:28 pm
marcnath wrote:
Mon Jan 22, 2018 6:42 pm
Yes, of course. It is never a good idea to put incorrect info in these forms, however minor
So putting 0 in my income will have no adverse effects right? I do have a significant sum on money in my personal accounts to sustain myself.
Not even sure if you have any choice. If your income is 0, it is. Giving false information is deception.

There are no income requirements for T1E settlement.

You just have to show that you will not be dependant on benefits after you get your ILR and the money in your personal account will do just fine for that.