Claming for expense - prob for hsmp extension

[NitulipaAssociatesLimited]

GROSS is what you have on contract.

1. Don't get into the Umbrella company mess, set up a LTD and hire a good accountant.

2. For HSMP extension you will be showing your personal bank records, so pay yourself (from your LTD company) enough to cover at least +5 points on qualification in the last 12 months.

[vhadiant]

The HSMP scheme uses PAYE income as a criteria, so company dividends don't count.

That is not true. HSMP has allowance for the self-employed or people who are directors of their own limited company. The dividend are counted as income.

The guideline has a very thorough explanation about this.

[bored]

If you claim expenses then your earning power for HSMP purposes is indeed reduced. If you have a limited company you do not have to pay yourself the required amount in PAYE to qualify for HSMP, dividends will do.

In any case, do not rely on any advice given here and instead just call the Home Office helpline.

[sathyaram_s]

Setting up a limited company is likely to be beneficial, unless you are on very low rates ...

If you are IR35 caught, then anyways you will be receiving higher salary ..

If you are outside IR35, as someone already mentioned, in year 2 , pay yourself a PAYE salary of the reqired amount (40k if I am right) and take the rest as dividends ...

The limited company gives you an additional benefit -- say, if you retain as much profit as possible in year 1, even if you have longer breaks between contracts in year 2, you have money in your company to pay the required salary ... You will not have this flexibility with an umbrella ...

Hi guyz,

I am currently on the HSMP scheme. my visa extension is after 1.5 years. i have got a contract role for 9 months. for contract jobs, i have to get registed with umbrella companies

The guy at the contract company says that i can claim for the expense on bus and house allowance.

my main thing is, if i claim for allowance will it be taken off from the gross pay. as i told i ahve my visa extension, so i dont want my gross to reduced


i would like to know if this would cause any prob in my visa extension. some ppl say that the gross pay would be less since we are claiming for benefits.

so pls let me know

Thanks

Subramanian

[Ardesco]

The HSMP scheme uses PAYE income as a criteria, so company dividends don't count.

But i'm sure the expenses mentioned aren't going to make to much of a difference, I certainly don't think they will make or break your application.

Would need to know the specifics, but with a LTD you can paye yourself exactly the amount required in PAYE and then take the rest as dividend which will give you a saving on the amount of tax you pay if you go through an umbrella. Even if you have to take all income as PAYE to hit the target you still save the umbrella fee's and as soon as you have hit the target and got your visa it's min wage max divi all the way

[Toasta]

BTW, what is a house allowence?

[Toasta]

The HSMP scheme uses PAYE income as a criteria, so company dividends don't count.

But i'm sure the expenses mentioned aren't going to make to much of a difference, I certainly don't think they will make or break your application.

[Ardesco]

Hi guyz,

I am currently on the HSMP scheme. my visa extension is after 1.5 years. i have got a contract role for 9 months. for contract jobs, i have to get registed with umbrella companies

The guy at the contract company says that i can claim for the expense on bus and house allowance.

my main thing is, if i claim for allowance will it be taken off from the gross pay. as i told i ahve my visa extension, so i dont want my gross to reduced


i would like to know if this would cause any prob in my visa extension. some ppl say that the gross pay would be less since we are claiming for benefits.

so pls let me know

Thanks

Subramanian

Never heard of a house allowance (you have to have somewhere to live). Regardless I'm afraid I have no idea what the requirements are on the HMSP scheme.

Don't see why you have to register with a umbrella, as far as i'm aware anybody can set up a LTD Co, even if they are not UK nationals. What is the contract company? the agent?

oh and

guys

***GRAMMAR***

I

HTH

[Ruprect]

p.s. is this a wind up by Dim Prawn?

[Ruprect]

Boy, you've chosen a good forum to post such an enquiry!

[krssubbu]

Hi guyz,

I am currently on the HSMP scheme. my visa extension is after 1.5 years. i have got a contract role for 9 months. for contract jobs, i have to get registed with umbrella companies

The guy at the contract company says that i can claim for the expense on bus and house allowance.

my main thing is, if i claim for allowance will it be taken off from the gross pay. as i told i ahve my visa extension, so i dont want my gross to reduced


i would like to know if this would cause any prob in my visa extension. some ppl say that the gross pay would be less since we are claiming for benefits.

so pls let me know

Thanks

Subramanian