Re: Earnings/Net Profit in Ltd Company - Accountant Letter?

chowkal · Post by **chowkal** » Sun Apr 20, 2014 12:56 am

Yes. You need Accountant letter to confirm your income, p&l statement and dividend if any. The accountant should be recognised one
Ta

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 9:49 am

This guidance shows what you have to do:

1. Show profit and loss account & Balance sheet of the company (not yours) as prepared and signed by an authorized accountant in accordance with the Companies Act or FRSSE.

2. Company documents such as certificate of incorporation and your sole share holding ones - the share certificate

3. Company bank statement

4. Company invoices

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 2:40 pm

This may not be written anywhere but it is required to prove that earnings are the result of your economic activities in the UK.

From your posting I assume that you have a company and the company has made a profit. But they may ask you what you do for living as you did not draw any salary from the company or took any interim dividened? Or you have other salaried or self employment income other than this limited company?

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 2:42 pm

When you say my own accounts? what do you mean by that?

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 5:58 pm

So basically the thing you are calling "my accounts" are your companies accounts. Well for the Companies House and HMRC, the small companies do not need to get an accountant report and just the signed copies by the director are acceptable. But for UKBA you do need to get an accountant report on your or companies accounts because that is a third party verification (one being the original bank statements showing the money received).

I am myself an accountant but I had to get an accountant report for my companies accounts for verification.

Look at here -

http://www.immigrationboards.com/indefi ... 62407.html

It would have been better for you to draw a minimum - no tax no nic salary (which was £640 pcm for the last year). That would have saved you 20% of 640*12 corporation tax.

Well one more thing - if you work for single company as a director of a contracting company then there is a risk that HMRC may jump in and impose IR35 on you as they may term your income from the company as salary and may ask you to pay for national insurance.

Well with this new year started on 6 April 2014 the employer national insurance for small companies has been waived off for £2000. So this is an opportunity to get some salary from the company.

Paying national insurance is good for you as it counts for your pension contribution.

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 7:37 pm

"for example a tax return which can be for either self-assessment, or corporation tax1,"

Well if you have submitted your corporation tax return and you have an acknowledgement from HMRC in the form of bill, then I think you wont need an accountant's verification.

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 8:00 pm

Boy! People say these caseworkers are only school leavers - they ask for things which are not needed! So better wasting time with them - do as Romans do!

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 8:00 pm

Please look into your post - I took it from your post.

Wanderer · Post by **Wanderer** » Sun Apr 20, 2014 9:08 pm

Groan..

The Ltd is nothing to do with you, it's a separate legal body, the money it earns belongs to it not you.

You need to show your personal earnings from the Ltd that employs you and you are a director of. So, payslips and dividend vouchers, that's all..

And they do check with HMRC so get it right.

Simples....

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 9:26 pm

A bit confusing though!

Check page 48 last para

Wanderer · Post by **Wanderer** » Sun Apr 20, 2014 9:28 pm

elbraddo wrote:Haha, I love the uneducated waffle that seems to pass for "information" on this forum.

Wanderer: you have no idea, mate. UKBA clearly states that if you keep your profits in a Ltd company, then the company's Net Profit figure is what they deem to be your earnings for the purposes of the earnings requirement in the points based system.

Mostar: so you're saying that your advice isn't based on the guidelines, but on anecdotal knowledge that some of the UKBA caseworkers are school leavers and might ask for stuff that isn't specified in the guidelines. Am I correct?

For self employed yes, not for Ltd, if so show me the link and I'll backtrack!

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 9:31 pm

I am not a lawyer boy! But we learn from each other! You're the one who does not follow like sheep! Its good!

You can submit your own documents which UKBA CW would like to cross check with the HMRC!

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 9:42 pm

One more thing to note that you have not retained the profit in your company and you have taken dividends.

Mostar95 · Post by **Mostar95** » Sun Apr 20, 2014 11:41 pm

Well then you can claim dividends + retained profit as your previous earnings points! But better engage an accountant - not all of them greedy and expensive. I paid to mine £300.00

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