Post
by rizmir » Sun Jul 13, 2014 3:13 pm
Hi wanderer
could u pls highlight some of the issues about company income. Guidence in company direcor or section F shows:
''A limited company is owned by its shareholders. Where such a shareholder is also a director employed by the company, they may be paid a salary and receive dividends, which can generally be counted, as appropriate, as employment or non-employment income under Category A, Category B or Category C.
However, if the company is of the type specified in paragraph 9(a) of Appendix FM-SE, the person’s income will be considered under Category F or Category G. This is because in a company in sole or limited family ownership there is scope for doubt as to the effective control of the company, as the person is a director and shareholder or the other shareholders are family members of that person. In that case, instead of the employment evidence in Category A or Category B or the dividend evidence in Category C, we need evidence about the operation of the company''.
paragraph 9(a) shows:
(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.
what u think if a person is only director and receives salary and divedend then by considering above guidance his income could be counted as under employment category A , B or C or under category F.
highly appreciated
Rizmir
