Re: Director of Ltd company related questions

[Zorrouk]

Dear Madam/Sir,

I am a director of a Ltd company and my financial year starts 1Aug and ends of 31st July.

In the financial year Aug 2012-Jul 2013 had a T/O of £36000 and I had profit of 5500.
I paid myself min my salary from Aug 2012 to April 2013 of 3700 and from 6th of April i paid myself Annual salary of 18996 i.e £1583 per month. So in Total i paid myself £10036, which is shown on my accounts for the FY Aug 2012-jul 2013.

My wife works in India and has a Gross salary of around £26000 and she has fixed deposit savings certificates worth £16000 which has been there for more than 6 months in a bank in India. Which is a saving from her employment.

We applied for the Entry clearance for spouse visa in May 2014 but UKBA refused.
We filled the category F as per guidance it had mentioned to put in Income (Before Tax) and i got confused with it as i thought it meant Income as Turnover and i wrote £36000 ( As per International Accounting standards 'Turnover' means 'Income').
Entry clearance officer has said that i should have put the Profit before tax which is £5500.

My Query is as i have been paying myself salary of 18996 from April 2013 and have got Payslips for 18996, P60 and Self Assessment for the same period. Would they not consider my salary as 'sole' employee and the director of my company?
I have the personal bank statement from April 2013 to May 2014 showing that the salary was paid into my account by my company.

Please note the min Salalry i.e 3700 (not taxable and NIable) that i paid myself from Aug 2012 to Marc 2013 has no payslips as i withdrew fund irregularly as cash.

Please reply urgently as i have to file the appeal and have to explain to UKBA . I hope i have not confused the thing.

[abdulraheem123]

"Entry clearance officer has said that i should have put the Profit before tax which is £5500."

why would the ECO say that? £5500?- thats not your income- thats just your profit left over from your company after all the expenses and salarys have been paid out.

your income is what you paid yourself from your company.(what you withdrew from your company into your personnel bank account.)


do you know what your accountant declared as your income on your self-assessment tax return?
was it still £18996 for the tax year of april-march 2013 or was it a different amount?

[Zorrouk]

Tax year Apr 2012 to Apr 2013 i have no income to tax as i paid below threshold.

Tax Year Apr 2013 to Apr 2014 i have paid 18996!

[Zorrouk]

CAT F ... ECO said Income = Profit before tax which in my case on accounts is £5500. he doesnt take into consideraton Turnover as Income for this purpose.

As i explained in my original post that from £36000 TO in the FY Aug 2012 to Jul 2013...i have only paid myself 10300 during that financial year. However, from Apri 2013 i paid Annual Salary of £18996 for which i have a P60 and also SA for Tax Year Apr 2013 to Apr 2014.

He takes my FY Aug 2012 to Jul 2013 into account then he wud consider £10300 + 5500 (Profit)
As we applied in May 2014 so can't he take Annual Salary of 18996 i paid my self before May 2014 , which is a tax yearApr 2013-Apr 2014 for which i have a p60 and also SA.

Also in the 'Other Info' my wife has shown her more than £16000 savings, which she has held for more than 6 months (more than a year).

I believe as per Section (9a) i am not the company specified there and hence I can be deemed in a salaried employment. Can anybody clarify please!