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Net/Gross earnings as dividends from the company owned

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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Gayane
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Joined: Thu Dec 15, 2011 8:51 pm

Net/Gross earnings as dividends from the company owned

Post by Gayane » Wed Feb 27, 2013 2:27 pm

Hi,

I have doubts on how to fill in the application form for the Previous Earnings section and how to calculate the exact number of points for that. I have been self-employed trading through my own company and retained the company profit as dividends, since I am the only shareholder. Afterwards, I started a permanent position, for which I get payslips each month. In order to claim points for the previous 12 months earnings, I would need to include my earnings from this recent permanent position plus the several months I have worked as a contractor/self-employed to fulfill the previous 12 month period. In the guidance, as per my understanding, I need to provide the net income of the company for that period (Mar 2012 – Jul 2012) to claim as my earnings for that period, but the accounts, the dividend voucher and the letter from my accountant all are mentioning the full period of taxation, my gross and net earnings for the full year. Now, my confusion is what figure I should consider as my earnings for those several months to be covered before I started my permanent position, is there a special way to calculate the net amount I earned from the gross I received during those months, or is it ok for me to use the gross number before tax? Please advise.

Many thanks,
Gayane

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