Accounting mess

[cool_guy123]

Hi Guys,

Sorry for my lack of accounting knowledge but here i am looking for some guru's advise.

I'm on Tier 1 (G) Visa and my ILR is due in mid next year and i have to show 50K as an income. I am a director of a limited company (IT Business) and doing a contract job which is paying me exactly 50k in 12 months. It means 50K income will come in my business account and i will have to transfer it from business A/C to personal A/C. My accountant advised me that i will have to transfer £10K salary and £40K dividend in 12 months.

Today my accountant told me that i can't get 40K dividend unless i have tax money left in my business account. So, instead of 50K income in 12 months i have to earn 60K income in my business account. :@

Can some one advise me a simple solution to solve this issue. I am ready to pay more tax but don't want to take any risk for my ILR.

Thanks

[Malik44]

Your accountant is right in order to get £40000 divedend you need to earn some extra money.
In accounts divedend is mostly declared from business profits and I didn't see any business in my life earning £40000 and declaring £40000 as divedend with zero expenses.

[tier1-immigrant]

Hi Guys,

Sorry for my lack of accounting knowledge but here i am looking for some guru's advise.

I'm on Tier 1 (G) Visa and my ILR is due in mid next year and i have to show 50K as an income. I am a director of a limited company (IT Business) and doing a contract job which is paying me exactly 50k in 12 months. It means 50K income will come in my business account and i will have to transfer it from business A/C to personal A/C. My accountant advised me that i will have to transfer £10K salary and £40K dividend in 12 months.

Today my accountant told me that i can't get 40K dividend unless i have tax money left in my business account. So, instead of 50K income in 12 months i have to earn 60K income in my business account. :@

Can some one advise me a simple solution to solve this issue. I am ready to pay more tax but don't want to take any risk for my ILR.

Thanks

Negotiate a day rate rise for your current contract, such that you meet your earning criteria.