Gross Income for contractors for HSMP extension?'

I understand the status of HSMP extension depends on my income. For a highly skilled worker who is contracting what will count as salary towards a renewal for HSMP?

Contractor Taxation Vocabulary: 


If your HSMP application was

If your HSMP application was accepted under the old Highly Skilled Migrant Program - i.e if you joined the scheme by 5th December 2006, you are still covered by the old HSMP extension requirements. We have some information about the old rules for HIghly Skilled Migrant Permit HSMP renewals. If you joined after this date you are now required to actually re-apply for a Tier 1 (General) visa when your extension is due. Its not very nice, but unfortunately they are the current rules for hsmp renewal.

The Border Agency will look at any fully taxed income. Here is information on their site. In basic terms they want to see PAYE (pay as you earn) salary where they look at the gross (before tax) figures. This is easily supported by payslips and bank statements. Other income such as dividends and rental income, will be considered but must be shown to be declared for tax.

This means if you are running your own limited company you’ll need to show you’ve paid personal income tax on all dividend payments as well as your companies obligation to pay the corporation tax. So you’ll need to show personal tax returns, bank statements, dividend slips, company bank statements and company accounts. Other forms of earnings like dividend payments from umbrella companies (which fall foul of the MSC legislation), trust disbursements, loans and so on are not counted.

Bear in mind we aren't qualified immigration or tax advisors and we recommend you should always check your application and circumstances with an immigration attorney. However we are basing this information on the feedback we receive from people currently contracting on HSMP work visa's and applying for renewals.