Refusal on the basis of salary - please kindly advise.

[Express]

Hi,

Your advice and assistance with this dilemma will be much appreciated.

My case has been refused as my "Annual Salary" as a company director did not Tott up to the £18,600. I worked as a company director for 10 months during 01/04/2012 - 31/03/2013 (tax year as printed on my Company Tax Return CT600).

My work commenced as an Employee on 4 June 2012 in this Tax year, in which I was paid at £796. My role as a company director commenced on 1 November 2012 when I was paid £1323. These dates were confirmed on my "employment details" letter compiled by my employer and my stat dec.

A total of 16 wage slips were submitted. The wage slips were from June 2012 (when employment commenced) till April 2013. Further wage slips were also submitted from May till September 2013 to show regular payments as a director.

The refusal letter:

"I have examined your sponsors wage slips, you have submitted 10 wage slips that show an average monthly income of £1,184.50. This equates to an annual income of £14,214.00 this is insufficient to meet their financial requirements of appending X appendix FM".

I presume I have to be working 12 whole months with a directors salary to qualify? Did I perhaps error by submitting the
Lower wage from June - Oct 2012 (prior to my directorship) despite me advising them of the difference and reasons.

The sole reason is the salary for this particular tax year. Do I have a case to appeal? What are my chances with this?

Kindest Regards

[Wanderer]

£14k is not enough to meet the criteria, you need to have earned £18.6k.

[MPH80]

Who are you working for as a company director? Yourself or a larger limited company? How many shareholders and directors are there and who are they?

On the salary - if you are self employed as a company director (with some caveats) then you can only submit income from that last tax year - on the payment you've put - I make that you would have earnt (annualised) £15.8k. That's below the threshold.

But the question as to which tax year you submit is dependent on the questions I've asked at the top.

M.

[Express]

I am working as a company director with 2 other family members (who are also company directors). Its a Limited company, a small business in that. We all have small shares.

From November 2012 till November 2013 I would have earned well and above the threshold of £18,600. But all paperwork needs to coincide with the Tax year shown on the CT600 I had submitted.

Appears the adjudicator did not take into account that my directorship started mid way of the tax year (Nov as opposed to April 2012).
I submitted further wage slips post tax year to show regular payments as director (till September 2013)

Companies House confirmation confirms me as Director. My Accountant verified my salary.

[Wanderer]

Even £1323 a month is not enough, unless I'm missing something.

Do you draw dividends in addition?

[Wanderer]

I am working as a company director with 2 other family members (who are also company directors). Its a Limited company, a small business in that. We all have small shares.

From November 2012 till November 2013 I would have earned well and above the threshold of £18,600. But all paperwork needs to coincide with the Tax year shown on the CT600 I had submitted.

Appears the adjudicator did not take into account that my directorship started mid way of the tax year (Nov as opposed to April 2012).
I submitted further wage slips post tax year to show regular payments as director (till September 2013)

Companies House confirmation confirms me as Director. My Accountant verified my salary.

Are you an an IT Contractor?

[MPH80]

You can only use the last completed tax year.

So based on that - it's not a valid application.

Reapply using the following tax year (2013/14).

[Express]

£1323 Net per month. £1600 Gross.

I was paid £1323 for a duration of 10 months (in tax year) when I was director. Although I submitted a further 6 months wage slips (outside the tax year) to show a consistence and regular wage. I guess that did not help.

No I dont draw out dividends.

My thinking was to go for an Appeal based on Human Rights, Family Life. However, uncertain of the strength of this case.

[Express]

Also, if I was to appeal can I possibly show new evidence ( the extra pay slips I have to date till April 2014 and a CT600 for new tax year April 2013-2014). Or is this not permitted?

Only the entire batch of paperwork is not at fault, just technicality with pay. I dread to reapply and have a 1001 errors on a rather
complicated case as Director. But, if thats whars to happen and the Appeal is a waste of time.... so be it.

[Express]

So what do you think? Am I wasting my time?

[Obie]

You can only use the last completed tax year.

So based on that - it's not a valid application.

Reapply using the following tax year (2013/14).

That is not correct. Under category G, OP is entitled to your the average of the last tax year and the current.

[MPH80]

Appeal = wait for months, no certainty of result

Reapply with this year's tax = shorter time and more certainty.

I doubt you'll succeed.

You submitted 10 payslips with a gross amount of £1600. That's £16000 over 10 months - they don't annualise that - it's just £16,000.

I'm not sure how they got to their number.

[MPH80]

You can only use the last completed tax year.

So based on that - it's not a valid application.

Reapply using the following tax year (2013/14).

That is not correct. Under category G, OP is entitled to your the average of the last tax year and the current.

True - but not helpful to our OP who only had one completed financial year at his disposal.

[Express]

Might sound crazy or maybe not.. I dont know. Ill risk an Appeal (pay £140), take new evidence with me if I have to (new CT600 and further 6 payslips for the new tax yr) at the Tribunal. I will also will be submitting a fresh case with renewed documentation. Sit and wait which is successful and which one of the two is processed the fastest. I rather spread my chances.