What constitutes eligible earnings for Tier1 general renewal

[hanumanth]

Hi

I am working as a contractor. My pay slip looks like this
-->Invoice raised per month = Total income to the limited company
-->Total available Salary = Total income to the company - (Employer NI + Processing fees)
-->Total available salary/Total payments = Salary + Expenses
-->Net payment = Total payments - (Employee NI + Tax)

So my question is what are the eligible earnings which I can show at the time of renewing my Tier1 General Visa. Is it the
1. Total income to the company from the invoice raised OR
2. Total available salary/Total payments OR
3. Just the Salary excluding the Expenses

Could someone please clarify.

Thanks.
HR

[AccountantMatthew]

Hi hanumanth,

Just to clarify, are you working through your own limited company set up or for an umbrella company? The reason I ask is because you mention processing fees and NI so I was wondering whether someone other than yourself or your accountant processes your payroll.

[hanumanth]

Hi hanumanth,

Just to clarify, are you working through your own limited company set up or for an umbrella company? The reason I ask is because you mention processing fees and NI so I was wondering whether someone other than yourself or your accountant processes your payroll.

Hi Matthew,

Thanks for your reply. I have taken representation of an umbrella company, which raises an invoice to my client every month depending on the number of days I worked. My Client pays directly to the umbrella company, which becomes "Total income to the company" from which the umbrella company deducts "Employer NI + processing fees" then gives the "Total payment", which comprises "Salary + Expenses". My concern is that whether Total payments would be eligible earnings for renewal or just the 'Salary' minus the 'Expenses'.

Note: All the salary breakup mentioned above is clearly mentioned in the payslip.

Please let me know if you need more information.

Thanks.

[AccountantMatthew]

I see that as just being your salary in that case hanumanth. Your expenses are reimbursements for costs you bore at an earlier time rather than income and the total income to the company reflects what they invoice the client (and is due to the umbrella company).

[Sushil-ACCA]

Hi

I am working as a contractor. My pay slip looks like this
-->Invoice raised per month = Total income to the limited company
-->Total available Salary = Total income to the company - (Employer NI + Processing fees)
-->Total available salary/Total payments = Salary + Expenses
-->Net payment = Total payments - (Employee NI + Tax)

So my question is what are the eligible earnings which I can show at the time of renewing my Tier1 General Visa. Is it the
1. Total income to the company from the invoice raised OR
2. Total available salary/Total payments OR
3. Just the Salary excluding the Expenses

Could someone please clarify.

Thanks.
HR

only earning on which taxes paid will be considerd by HO IE taxable earning