working as a contractor implications on previous earnings

[marzooq]

what if I need to extend my visa and I work as a contractor?
what are the implications ?

[Lucapooka]

You have not elaborated on your situation but, generally, if you are not self-employed with a company:

Contractors:
If the applicant is a contractor who does not operate either through his/her own company or as an employee, he/she may provide:
• an accountant’s letter confirming a breakdown of his/her gross and net earnings for the period claimed; and
• personal bank statements clearly highlighting all credit payments made
to his/her account from employment undertaken during the earnings period claimed.
All accountants must be either fully qualified chartered accountants or certified accountants who are members of a registered body, see section on providing evidence from an accountant or accountancy firm.

[marzooq]

[quote="Lucapooka"]You have not elaborated on your situation but, generally, if you are not self-employed with a company:

[i]Contractors:
If the applicant is a contractor who does not operate either through his/her own company or as an employee, he/she may provide:
• an accountant’s letter confirming a breakdown of his/her gross and net earnings for the period claimed; and
• personal bank statements clearly highlighting all credit payments made
to his/her account from employment undertaken during the earnings period claimed.
All accountants must be either fully qualified chartered accountants or certified accountants who are members of a registered body, see section on providing evidence from an accountant or accountancy firm.[/i][/quote]

what if I work for umbrella company?
what is easier ? to have my own company or umbrella ?

[AccountantMatthew]

From a UKBA point of view, providing you follow the guidance for providing the documents and qualify for the requisite number of points, it won't matter.

Looking at the situation more widely, going via an umbrella company v through a limited company is a very long answer and can be quite a complex one too. There are advantages and disadvantages to both and ultimately it is down to what factors you give preference to (e.g. do you want to minimise tax, do you want little admin, do you want to keep accountancy costs down etc etc).

Either way you should do some research into what running a limited company and being a director is all about as there are a number of legal responsibilities and implications. There are a lot of resources on the internet - starting with BusinessLink, Companies House and HMRC. The choice shouldn't be taken lightly - but by doing your homework first it will save time, costs and hassle further down the line.