Tier 1 extension through full time & Selfemployment

[ukbalovesme]

Dear All

I have a Tier 1 General Extension this year, I qualify for all the points except for Salary, and I am currently on £24000 and need £26000 to qualify. I have self employed income of £5000 through consulting/contracting. Please note I am not earning through a limited company or paying dividends to myself. I have earned the extra £5000 purely through self employed means; I have the following proof for it –

1. I can show various bits of money coming in from the contracted company to my personal bank account throughout the year which makes up the £5000.

2. I can show invoices to the company and acknowledgements from the company on their letterheads stating the amount paid into my bank account on said dates.

3. I have a basic one page contract with the company to provide them consulting services based on my field.

4. Please note the contracting company is a genuine company and not owned by me or my friends.

5. I can prove £24k on my P60.

6. I would be filing a tax return through a Chartered accountant for the £5k and would also pay Tax/NI for it as worked out by my accountant or HMRC.

7. I can produce a letter from my accountant stating my self employment earnings and tax workings.



My question is whether these self employed earnings will be accepted and what other documentation is required for UKBA. Do I need a solicitor to present my case, what extra help can the solicitor provide me with my application; I am planning on taking the postal route and not same-day.

thanks in advance to all.

Sam

[rakeysh.patel]

Are you a registered self employed? You mentioned that you will file the tax etc, do you have UTR number? If those two are YES you can count that tax towards your income. You do not necessarily need a solicitor unless you feel comfortable in doing so and spend extra for it.

[rakeysh.patel]

Are you a registered self employed? You mentioned that you will file the tax etc, do you have UTR number? If those two are YES you can count that tax towards your income. You do not necessarily need a solicitor unless you feel comfortable in doing so and spend extra for it.

[QuickSam]

You just need to consult with an accountant. Get registered as Self Employed (if u r not registered yet) and get the UTR (which is your Unique TaxPayer Reference number).

You don't need a solicitor for this, the accountant can sort this out for ya.

***Maybe something for 'AccountantMatthew' to answer

[Manka10]

Please note I am not earning through a limited company or paying dividends to myself. I have earned the extra £5000 purely through self employed means

In addition to documents you have listed
If you are registered as self employed, you will need to provide the Class 2 NI contribution bill as proof of paying NI for being self-employed or a letter from HMRC showing exemption from paying Class 2 NI due to low earnings

[zayedshah]

Hi Manka10,

Can you please explain:

1. When you said, "If you are registered as self employed" - does it mean the certificate of incorporation of the private limited company. I am operating through my limited company and I had thought about putting myself as self-employed but its still not clear yet..

2. What about this Class 2 NI contribution? Just yesterday I saw it in Tier1 General guideline. I had never given thought about this. Not when I checked my wages summary from my accountant, all NIs are shown as Nil. Is there something missing? Should I have been paying NI...Now, "a letter from HMRC showing exemption from paying Class 2 NI due to low earnings" - may be this explains why my NI was NIL all along? But then I dont remember having any letter from HMRC stating something like this..Please throw some light..Thanks.

[Manka10]

Hi Manka10,

Can you please explain:

1. When you said, "If you are registered as self employed" - does it mean the certificate of incorporation of the private limited company. I am operating through my limited company and I had thought about putting myself as self-employed but its still not clear yet..

2. What about this Class 2 NI contribution? Just yesterday I saw it in Tier1 General guideline. I had never given thought about this. Not when I checked my wages summary from my accountant, all NIs are shown as Nil. Is there something missing? Should I have been paying NI...Now, "a letter from HMRC showing exemption from paying Class 2 NI due to low earnings" - may be this explains why my NI was NIL all along? But then I dont remember having any letter from HMRC stating something like this..Please throw some light..Thanks.

If you have your own company then its the company registration that you should be doing. Also, Class 2 NI has to be paid only by self-employed/sole traders who dont have their own ltd company

[zayedshah]

Thanks for the quick reply Manka.

[ukbalovesme]

Are you a registered self employed? You mentioned that you will file the tax etc, do you have UTR number? If those two are YES you can count that tax towards your income. You do not necessarily need a solicitor unless you feel comfortable in doing so and spend extra for it.

THank you

[ukbalovesme]

Please note I am not earning through a limited company or paying dividends to myself. I have earned the extra £5000 purely through self employed means

In addition to documents you have listed
If you are registered as self employed, you will need to provide the Class 2 NI contribution bill as proof of paying NI for being self-employed or a letter from HMRC showing exemption from paying Class 2 NI due to low earnings

thanks manka

[ukbalovesme]

You just need to consult with an accountant. Get registered as Self Employed (if u r not registered yet) and get the UTR (which is your Unique TaxPayer Reference number).

You don't need a solicitor for this, the accountant can sort this out for ya.

***Maybe something for 'AccountantMatthew' to answer

thanks quick sam