Self Employment earnings - Please help a little

[frrana]

Dear All

REF: Tier 1 (General) - After 6th April 2010

Salaried employment: I am a teacher with Master's degree in Uk. My annual salary as an employee for school is 25 000 K pounds from 6th April, 2009 till 6th April, 2010.

Self employment: I also teach on behalf of a tutoring agency to teach students in the evening. My clients pay money to the tutoring agency and then tutoring agency give money to my bank account on monthly basis. They send me slips saying how many hours you taught and how much money you earned from the hours you worked. I have received 6000 pounds for the last 12 months from 6th April 2009 till 6th April 2010.

What evidence shold I show from self employed earnings? What I think :

1. Show the slips from tutoring agency which are on company headed paper + bank statements showing the money paid which are same as slips. Is the OK?

2. OR I can declare my earnings to HMRC , pay tax and show this as an evidence along with Bank statements. Is that OK?


Please help. I am not sure about which of the above options is acceptable. Please please give your opinion. Thank you

frrana

[alimohmand]

Hi,

You need to show 2 Evidences according to the current requirements:

Payslip + Bank Statements are fine.

Do you Pay Taxes on your part time work? If not you will have to register with HMRC as self employed.

In Regards to your application I think Payslips + bank statements are fine.

Wait for Seniors to respond

Good Luck

[frrana]

Thanks. Yes I am registered with HMRC for the last two years. I will pay tax once the tax year ends on 6th April.

Thanks for your response and good luck for your application which you are sending today.

Frrana

Hi,

You need to show 2 Evidences according to the current requirements:

Payslip + Bank Statements are fine.

Do you Pay Taxes on your part time work? If not you will have to register with HMRC as self employed.

In Regards to your application I think Payslips + bank statements are fine.

Wait for Seniors to respond

Good Luck

[frrana]

Please senior members help me. Any advice !

Thanks. Yes I am registered with HMRC for the last two years. I will pay tax once the tax year ends on 6th April.

Thanks for your response and good luck for your application which you are sending today.

Frrana

Hi,

You need to show 2 Evidences according to the current requirements:

Payslip + Bank Statements are fine.

Do you Pay Taxes on your part time work? If not you will have to register with HMRC as self employed.

In Regards to your application I think Payslips + bank statements are fine.

Wait for Seniors to respond

Good Luck

[[iD]]

your self employed earnings doesn't seem like self employed, it's more like salaried employment

The slips agency gives you is it like a payslip? does it have tax and NI mentioned on it?

I mean you know more about you being employed or tax employed but if you can elaborate it'd be better

[demur123]

As you have said , they send you payslips for your self employment work. If they deduct your tax on that than it is not self employment work , it is salaried employment or your 2nd job when your main job is as teaching in school. If that is the case, You just need to show all your payslips and bank statements reflecting the wages paid in your bank account.
If you are not sure whether they are deducting tax from your 2nd job. Check the payslip and look for the word 'TAX'

[frrana]

As you have said , they send you payslips for your self employment work. If they deduct your tax on that than it is not self employment work , it is salaried employment or your 2nd job when your main job is as teaching in school. If that is the case, You just need to show all your payslips and bank statements reflecting the wages paid in your bank account.
If you are not sure whether they are deducting tax from your 2nd job. Check the payslip and look for the word 'TAX'

Thanks for your reply.

They dont deduct any tax on the payments they make me monthly. I am self employed even according to them (tutoring agency). The pay slips only show how many hours I have worked. They send me this on company head paper by e-mail. For example I taught 2 hours and your payment is 30 pounds. So total for the month is 30 pounds lets say. The other thing it says is 30 pounds paid to your account on 20th of the month.

Now I have to declare to HMRC my earnings for the year and pay tax.

[frrana]

your self employed earnings doesn't seem like self employed, it's more like salaried employment

The slips agency gives you is it like a payslip? does it have tax and NI mentioned on it?

I mean you know more about you being employed or tax employed but if you can elaborate it'd be better

Many thanks for your reply.


They dont deduct any tax on the payments they make me monthly. I am self employed even according to them (tutoring agency). Plus I have registered myself as self employed. The pay slips only show how many hours I have worked. The payslips are not the payslips normally used for salried employment.They send me this on company head document by e-mail. For example I taught 2 hours in February and your payment is 30 pounds. So total for the month is 30 pounds lets say. The other thing it says is 30 pounds paid to your account on 20th of March for the month I worked in february.

I have to declare to HMRC my earnings for the year and pay tax accordingly. I plan to declare my earnings after 6th April, 2010 and pay tax on it myself.

[demur123]

Since you are registered as self employed you would have to send:
1) payslips
2) bank statement reflecting the amount of payment made on ur payslips
3) a letter from an accountant stating how much you made money on self employment (12 months period )
4) bills from hm&revenue (normally they charge 32 pounds or more every 3 months)
Since you sumbit your tax returns on the end of tax year (6th april i perceive) you will receive letters from hm&revenue and those letters can be submitted as well if you are applying after 6th april (sometimes when u havent got them you can still use ur accountant letter to state how much your self employed earnings are and hopefully that may work.

[frrana]

Since you are registered as self employed you would have to send:
1) payslips
2) bank statement reflecting the amount of payment made on ur payslips
3) a letter from an accountant stating how much you made money on self employment (12 months period )
4) bills from hm&revenue (normally they charge 32 pounds or more every 3 months)
Since you sumbit your tax returns on the end of tax year (6th april i perceive) you will receive letters from hm&revenue and those letters can be submitted as well if you are applying after 6th april (sometimes when u havent got them you can still use ur accountant letter to state how much your self employed earnings are and hopefully that may work.

Thank you very much.

I have everything apart from letter from accountant. How to get a letter from accountant ? I never had an accountant. For my last two years tax returns, I submitted my earnings (12 months) straight to HMRC and paid tax.

But you mentioned that if you haven't got the accountant letter, you can use letters from HMRC after 6th April. Usually they send me forms to fill in for Self employed earnings. On those forms, I declare how much I made over the last 12 months and what is my tax. Then HMRC confirms me on a letter stating the earnings and tax you should pay. I go to bank and pay the tax. Is it ok to show these letters from HMRC.

Thankyou
Faisal

[demur123]

When Home office wants to see your salaried payslip , they want the pay to reflect your bank statement for confirmation. So if you are self employed they want to make it sure that the money you have earned is genuine and confirmed by an accountant . What you need to do is make a visit to any accountant on the highstreet with your self employeed invoices/payslips, HM Revenue letters, bank statements and Your passport. An accountant will telly the all the payments that came into your bank (from your self employed earnings) and he will add all of your self employed earnings which he will print it out on his letterhead which will be enough for the caseworker to telly all your self employed earnings. Some accountants charge 100-200£ for giving that letter out to you. Try to find some accountant through ur friends so they will charge you 100£. Eventually if u cant , try to negotiate the price with him and thats how you wouldnt get ripped off

[Idea]

Im self-employed and my 2 cents

you can be self-employed by one of the following ways

-having your own limited company
-working under an umbrella company
-as a sole trader
-as apartnership firm

does your second job fall under any ot these ?
since the money is paid into your personal account i'm not sure how it will be perceived - will be interested to know...

[frrana]

When Home office wants to see your salaried payslip , they want the pay to reflect your bank statement for confirmation. So if you are self employed they want to make it sure that the money you have earned is genuine and confirmed by an accountant . What you need to do is make a visit to any accountant on the highstreet with your self employeed invoices/payslips, HM Revenue letters, bank statements and Your passport. An accountant will telly the all the payments that came into your bank (from your self employed earnings) and he will add all of your self employed earnings which he will print it out on his letterhead which will be enough for the caseworker to telly all your self employed earnings. Some accountants charge 100-200£ for giving that letter out to you. Try to find some accountant through ur friends so they will charge you 100£. Eventually if u cant , try to negotiate the price with him and thats how you wouldnt get ripped off

Thanks for that. That was very clear. I know few accountants on the highstreet. I will negotiate with them and hopefully they do me a favour. I will sort it out in two days and hopefully then I have everything to prove that I was self employed with the stated earnings.

I appreciate your kind help.
Thanks
Fsisal

[frrana]

Im self-employed and my 2 cents

you can be self-employed by one of the following ways

-having your own limited company
-working under an umbrella company
-as a sole trader
-as apartnership firm

does your second job fall under any ot these ?
since the money is paid into your personal account i'm not sure how it will be perceived - will be interested to know...

Thanks for the reply.

I am not sure actually in which category I fall under. I will look into this as well. Does it matter for application of tier 1 or not?

Faisal

[Idea]

Im self-employed and my 2 cents

you can be self-employed by one of the following ways

-having your own limited company
-working under an umbrella company
-as a sole trader
-as apartnership firm

does your second job fall under any ot these ?
since the money is paid into your personal account i'm not sure how it will be perceived - will be interested to know...

Thanks for the reply.

I am not sure actually in which category I fall under. I will look into this as well. Does it matter for application of tier 1 or not?

Faisal

i dont think it matters - money from both the full-time work and the part time work can be added and would become your total earnings

[frrana]

Hello

I went to the London1st, accountants on highstreet for obtaining the letter for self employed earnings. They says they are not certified chartered accountants. They says that the income reference you require is sufficient for the visa.

Is it ok to get a a letter from such accountants? I thought they had to be certified chartered accountants or accountants with ACCA, CIMA membership?
They are charging me 175+VAT? Is this alot ?

Help !

Faisal

When Home office wants to see your salaried payslip , they want the pay to reflect your bank statement for confirmation. So if you are self employed they want to make it sure that the money you have earned is genuine and confirmed by an accountant . What you need to do is make a visit to any accountant on the highstreet with your self employeed invoices/payslips, HM Revenue letters, bank statements and Your passport. An accountant will telly the all the payments that came into your bank (from your self employed earnings) and he will add all of your self employed earnings which he will print it out on his letterhead which will be enough for the caseworker to telly all your self employed earnings. Some accountants charge 100-200£ for giving that letter out to you. Try to find some accountant through ur friends so they will charge you 100£. Eventually if u cant , try to negotiate the price with him and thats how you wouldnt get ripped off