tier1 extension earnings issue

[argus7]

My tier-1 visa expires in July 2012. I need to show 50k earnings for a renewal.

I am working in a permanent role, I am short of 8k for my renewal. I plan to show earnings from July 2011 till June 2012. Am I cutting it too fine? The company I work for has just declined the annual bonus and I wont get any raises or any extra money/ compensations.

What options do I have? When do I start contracting? Can I continue working in my permanent job and show some earnings from a contract If I can do on a weekend if I start my own company . What legalities are involved if I continue working in contracts . My offer letter does not mention any clause(s) as this being my primary job and also my notice period is 12 weeks.

How legal is :

case 1:

a) I quit perm job and start contracting for 4-5 months to earn that extra 8k

case 2:

a) I continue my permanent job and start a company, dump money from one company account (after making a contract with other company) and then transferring funds from that company to my company . Is that legal?

Thanks,

[argus7]

after a long wait, got someone at UKBA on the phone, and explained my case to him, and got all details of documentation required if I contract / pay taxes and earn that damn 50k amount.

I am going for quit current job and look for a contract role that pays some the difference of 50k