Gross income in p60

[ahmeds]

Hi,

I have worked as a Contractor through umbrella company .

My questions are:
1. Why there is a difference of income? Is this because I have been paid as dividend

2. Should I submit p60 or not? (Tax return is mandatory evidence, but because of this tax return evidence my case may become weak)


Regards,

[SYH]

As you have not provided complete information, I have to make assumptions. Assumption one is that the p60 shows an amount that would be unimpressive to the case worker in terms of proving income.
Second, is that you are part of those schemes whereas if you had owned your LTD company, then claiming dividend as income would be straightforward. In this case, you would need to provide the contract with the umbrella company that explains how you are to paid. I assume again that they paid you a small salary and the rest in dividends to minimize your tax impact. Why is there a difference of income because dividends are considered return on investment NOT salary, although in this case, that is how you are using this arrangement.
Good Luck

[ahmeds]

Oh thank you for your reply SYH,

This is very useful reply,

What I conclude from all threads

- My claiming income should be total gross contract income showing on invoices, not the gross salary showing in p60 or payslips


Regards.

[SYH]

You provide the contract with the umbrella company that explains your salary break up which includes dividends, you provide the payslips and you provide the p60 and explain this method is used to reduce my tax liability and you hope the HO buys it.

[ahmeds]

but again my question is which amount should i claim?

regards

[SYH]

I wouldn't know unless you spell out what that entails