Director of Ltd company related questions

[mistral]

Hi Guys,

I hope that you are all well! After a month of hard work, I think that we are close to have all documents ready for the application for spouse visa for my wife.

I have just looked at APPENDIX 2 (VAF 4A NOVEMBER 2012)
FINANCIAL REQUIREMENT FORM and I have some questions about it. I fall in the scenario of a Director and sole owner of limited company, so it is my understanding that I can only use Category F or Category G when declaring my income. I plan to use Category F.

First question : 3.49 Was your sponsor self employed on the date of this application ? - Not sure what to answer, as technically I am not a self employed person. I am not registered as one either. I am Director of my own company...Any ideas ?

Second question : In terms of total income : I assume that I need to combine my salary + dividends when I fill in the total amount in 3.58. Should I include the dividends on a net basis (i.e. the amount that hit my personal account ) or the gross amount after adding the tax credit ?

Third question : Any idea what is to be entered in section 3.61? Is this for any other income than the salary + dividends I am paying myself ?

Many thanks for your help!

[Amber]

See 9. Self-employment or Director of a specified limited company in the UK (click)

[mistral]

HI D4109125,

Thank you for the link! I have already gone through the document, however the answers to the questions I raised do not strike me when I read it...

I dont think that it describes what you need to put in the specific boxes of the Financial Requirement Form.

In this sense, if you know the answers, please advise me.

Thank you!

[mistral]

Anybody can help me with the below ?

We are planning to send our application on Friday, so any help will be appreciated!

Thank you guys!

[estirichy]

hi mistral

I recently applied for a spousal visa for ma wife through a limited company and it was granted within 28days,

with your first question, although you are an employee of ur company, being a director means u need to have registered with hmrc as self employed through your company(my accountant confirmed this) so I ticked this box when I got to it. If you are not yet registered yet speak to ur accountant becos ukba may check with hmrc, it can be done by your accountant very quickly and backdated to when you started your company, that was what I did

with your 2nd question, use ur the combination of salary + NET dividend, because thats what you recieved and it will show up on your bank statement

with number 3, if tou have any other income from non employment that u want to added to perhaps reach the threshold then use this space otherwise put noting in there, thats what I did

hope this helps

wishing you the best of luck

[Wanderer]

hi mistral

I recently applied for a spousal visa for ma wife through a limited company and it was granted within 28days,

with your first question, although you are an employee of ur company, being a director means u need to have registered with hmrc as self employed through your company(my accountant confirmed this) so I ticked this box when I got to it. If you are not yet registered yet speak to ur accountant becos ukba may check with hmrc, it can be done by your accountant very quickly and backdated to when you started your company, that was what I did

with your 2nd question, use ur the combination of salary + NET dividend, because thats what you recieved and it will show up on your bank statement

with number 3, if tou have any other income from non employment that u want to added to perhaps reach the threshold then use this space otherwise put noting in there, thats what I did

hope this helps

wishing you the best of luck

A company director is NOT self employed, if you register so you will be inundated with requests for payment of NI from HMRC as an SE person which a company director is not.

[Imshzd]

Hi Guys,

I hope that you are all well! After a month of hard work, I think that we are close to have all documents ready for the application for spouse visa for my wife.

I have just looked at APPENDIX 2 (VAF 4A NOVEMBER 2012)
FINANCIAL REQUIREMENT FORM and I have some questions about it. I fall in the scenario of a Director and sole owner of limited company, so it is my understanding that I can only use Category F or Category G when declaring my income. I plan to use Category F.

First question : 3.49 Was your sponsor self employed on the date of this application ? - Not sure what to answer, as technically I am not a self employed person. I am not registered as one either. I am Director of my own company...Any ideas ?

Second question : In terms of total income : I assume that I need to combine my salary + dividends when I fill in the total amount in 3.58. Should I include the dividends on a net basis (i.e. the amount that hit my personal account ) or the gross amount after adding the tax credit ?

Third question : Any idea what is to be entered in section 3.61? Is this for any other income than the salary + dividends I am paying myself ?

Many thanks for your help!

As you are a sole director of your own limited company then you are consider as a self employed person.

You have to register as a self employed person in Hmrc.

From HO point of view you are self employed because you establish your own busniess.
From HMRC point of view you may be employed.

[mistral]

Hi estirichy, Wanderer, Imshzd,

Thank you very much for the detailed information and shared thoughts! It is very helpful.

In my case, already a couple of times in the past I had to ask my accountant if I am supposed to declare myself as a self-employed person in front of HMRC, however his answer to that has always been "No". I am not sure what was his reasoning though. I will check once again.

I will use the salary + net dividends then as the total income.

I will also leave 3D empty as I dont have any other sources of income.

Thanks again guys! Very helpful!

[Ayyubi72]

May I clarify something, as I have had the personal experience about this matter some years ago.

All self employed people have to file a self assesment tax return. But everyone who files a self assesment tax return is not self employed. Self assesment return needs to be filed for a plethora of tax matters, and not only by self employed people.

A person might have been employed in a tax year and then started a limited company. The best way to deal with tax matters in this situation is to file a self assesment.

An employed person receiving other incomes like share dividends, rental income, overseas income or many other kinds of income will need to file self assesment.

In many cases retired people will need to file self assesment.

Even unemployed people may find themselves in a position that they have to file a self assesment.

So, please do not confuse yourselves by thinking that because you need to file self assesment, you are necessarily self employed.

[Wanderer]

Hi Guys,

I hope that you are all well! After a month of hard work, I think that we are close to have all documents ready for the application for spouse visa for my wife.

I have just looked at APPENDIX 2 (VAF 4A NOVEMBER 2012)
FINANCIAL REQUIREMENT FORM and I have some questions about it. I fall in the scenario of a Director and sole owner of limited company, so it is my understanding that I can only use Category F or Category G when declaring my income. I plan to use Category F.

First question : 3.49 Was your sponsor self employed on the date of this application ? - Not sure what to answer, as technically I am not a self employed person. I am not registered as one either. I am Director of my own company...Any ideas ?

Second question : In terms of total income : I assume that I need to combine my salary + dividends when I fill in the total amount in 3.58. Should I include the dividends on a net basis (i.e. the amount that hit my personal account ) or the gross amount after adding the tax credit ?

Third question : Any idea what is to be entered in section 3.61? Is this for any other income than the salary + dividends I am paying myself ?

Many thanks for your help!

As you are a sole director of your own limited company then you are consider as a self employed person.

You have to register as a self employed person in Hmrc.

From HO point of view you are self employed because you establish your own busniess.
From HMRC point of view you may be employed.

Wrong I'm afraid.

http://www.contractoruk.com/limited_com ... ctors.html

"...as a director you are not classed as ‘self employed’, but as a director of a limited company."

http://www.rossmartin.co.uk/index.php/s ... ifferences

I've been a director of my own limited since 1990 and never registered as self-employed and neither has my accountant advised me to do so.

[Ayyubi72]

I think many people confuse filing self assesment with being self employed.

A director of company is clearly not self employed.

[mistral]

Yes, I checked with my accountant yesterday and he thinks that, for HMRC purposes, I am not self-employed, but an employee of my company....

Which makes tricky the filling in of section 3C as it is about "income from self-employment" with opening questions like "Was your sponsor self employed on the date of this application?" / "how long has your sponsor been self employed?" / "is your sponsor registered as self employed?"...

I guess that I will have to answer these as "No", "No", "Never", "No" and hope that they will read the accompanying letter where I will try to explain why I am not self-employed....

Any advice on the above will be appreciated!

[gettcp]

Yes, I checked with my accountant yesterday and he thinks that, for HMRC purposes, I am not self-employed, but an employee of my company....

Which makes tricky the filling in of section 3C as it is about "income from self-employment" with opening questions like "Was your sponsor self employed on the date of this application?" / "how long has your sponsor been self employed?" / "is your sponsor registered as self employed?"...

I guess that I will have to answer these as "No", "No", "Never", "No" and hope that they will read the accompanying letter where I will try to explain why I am not self-employed....

Any advice on the above will be appreciated!

Hi Mistral,

I think my case is also similar to yours i.e. not registered self-employed but employee of my company as director
Did your spouse get the visa?
what did you select for section 3.3 & section 3C

Your help is much appreciated

Thanks in advance

[mobileunlockers]

Hi

can anyone confirm that do we need 6 or 12 months accounts as director for your own company. I am confused do i need financial documents as self employed or as employee. i cant no clear answer for this. please can anyone help about this. thanks

[gettcp]

according to section-FM-1.7 guidance -

If you registered as self-employed with HMRC then set of documents you must submit set of documents mentioned in section 9.6 (e.g. Self assessment tax return)

If you are a director of the limited company drawing min salary + dividends then you must submit set of documents mentioned in section 9.8 (e.g. corporation tax CT600)

In either case you must submit last financial year i.e. 12 months

hope this helps

[shadhk]

Hi,

I have a question..,your help will be highly appreciated.

If I issue dividends as one off lump-sum for past 12 months to my self as company director would that be OKAY? I pay monthly salary to myself as company employee but I never issued any dividends voucher during past 12 months....so I am going to issue dividends as on off lump-sum payment to meet the financial requirements for spouse with children visa.

The charted accountant and the CT600 will back it up without any problem.

[Wanderer]

Hi,

I have a question..,your help will be highly appreciated.

If I issue dividends as one off lump-sum for past 12 months to my self as company director would that be OKAY? I pay monthly salary to myself as company employee but I never issued any dividends voucher during past 12 months....so I am going to issue dividends as on off lump-sum payment to meet the financial requirements for spouse with children visa.

The charted accountant and the CT600 will back it up without any problem.

You can't backdate dividend payments to a previous tax year, any money taken out will be treated as a Directors Loan with relevant BIK and interest payments to be made.

Speak to your accountant.

Are you saying your accountant will fiddle the books? Rocky road my friend, rocky road, UKVI will query HMRC records in cases like these.

[shadhk]

Are you saying your accountant will fiddle the books? Rocky road my friend, rocky road, UKVI will query HMRC records in cases like these.

No, no way, cant even think about that ...and why would I do that while I am running a legitimate business ....I think I fail to describe my situation properly....I admit, I never got the grasp of this ACCOUNTING thing.

I was self employed before, then in 2013 I established a ltd company and appointed myself as sole director...I have three employees including myself. My salary as employee is not enough to meet the financial requirement for spouse visa...and I haven't taken out any amount from my business account as dividends for 2013-2014 financial year, so to meet the financial requirement my accountant give me advise to issue one off lump-sum as dividends for the whole year which will be around 32000...

but we are not sure if ECO would rise any objection to it because it is a large amount.

[abdulraheem123]

Are you saying your accountant will fiddle the books? Rocky road my friend, rocky road, UKVI will query HMRC records in cases like these.

No, no way, cant even think about that ...and why would I do that while I am running a legitimate business ....I think I fail to describe my situation properly....I admit, I never got the grasp of this ACCOUNTING thing.

I was self employed before, then in 2013 I established a ltd company and appointed myself as sole director...I have three employees including myself. My salary as employee is not enough to meet the financial requirement for spouse visa...and I haven't taken out any amount from my business account as dividends for 2013-2014 financial year, so to meet the financial requirement my accountant give me advise to issue one off lump-sum as dividends for the whole year which will be around 32000...

but we are not sure if ECO would rise any objection to it because it is a large amount.

did you pay yourself a regular monthly salary? and how will your accountant be showing your payslips? as one lump sum or monthly payslips?

[shadhk]

did you pay yourself a regular monthly salary? and how will your accountant be showing your payslips? as one lump sum or monthly payslips?

Yes, I do.
Monthly payslip for salary which is based on minimum wage rate.
Payslip for one lump-sum dividends for whole year...not monthly.

[abdulraheem123]

has anyone shown a yearly payslip before?
a payslip showing the total amount of your salary paid in one year?

[rizmir]

Hi
if some one highlight please. I am a director of a limited company and company is not of a type as specified in paragraph 9(a). i.e., i am only shareholde. Its mentioned in appendix FM that if a person is getting salary in such a type of company that could be counted as salaried person in category A or B of employment.
I am getting salary since 7 months of 14K now i am thinking to have dividend of 5K to make 19K so that i can fullfill the 18600 requirement. In guidance its mentioned that category A or category B can be combined with category C(non-employment, i.e., dividend etc).

If any person highlight whether i picked the right understanding.

will be highly appreciated.
regards

[Zorrouk]

Hi Rizmir,

Can you please tell me did you get the reply?

I have the same issue!!
As you have got the visa i would be very keen to speak to you.
Kind Regards
Fayaz

[Zorrouk]

Hi All I am new to this forum and don't know how to see the replies to the post of Rizmir.
I have a similar query and want to see the replies. Or if anyone knows Rizmir please let me know how to contact him.
Kind Regards
Fez

Hi
if some one highlight please. I am a director of a limited company and company is not of a type as specified in paragraph 9(a). i.e., i am only shareholde. Its mentioned in appendix FM that if a person is getting salary in such a type of company that could be counted as salaried person in category A or B of employment.
I am getting salary since 7 months of 14K now i am thinking to have dividend of 5K to make 19K so that i can fullfill the 18600 requirement. In guidance its mentioned that category A or category B can be combined with category C(non-employment, i.e., dividend etc).

If any person highlight whether i picked the right understanding.

will be highly appreciated.
regards

[MPH80]

Hi
if some one highlight please. I am a director of a limited company and company is not of a type as specified in paragraph 9(a). i.e., i am only shareholde. Its mentioned in appendix FM that if a person is getting salary in such a type of company that could be counted as salaried person in category A or B of employment.
I am getting salary since 7 months of 14K now i am thinking to have dividend of 5K to make 19K so that i can fullfill the 18600 requirement. In guidance its mentioned that category A or category B can be combined with category C(non-employment, i.e., dividend etc).

If any person highlight whether i picked the right understanding.

will be highly appreciated.
regards

Why doesn't your company fall under section 9? You're a director of a limited company - the shares are held by you, but there are no remaining shares to be held by any other people - so you meet each line of section 9a:

(a) The specified type of limited company is one in which:
(i) the person is a director of the company (or another company within the same
group); and
(ii) shares are held (directly or indirectly) by the person, their partner or the
following family members of the person or their partner: parent, grandparent, child,
stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin;
and
(iii) any remaining shares are held (directly or indirectly) by fewer than five other
persons.

Point III says 'any remaining shares' - e.g. if there are any left - which in your case there aren't.

M.