Proof of Earning for Tier 1 extension

[spsahu82]

Hi All,

I am self-employed, working for my limited company. I will apply my tier 1 extension in next week. As a proof of earning, I am paning to submitting following document:

1. Personal bank account statement which show salary and dividend received from my limited company
2. Business bank account statement which show received invoice amount, salary paid and dividend transferred to my personal acount.
2. Letter from accountant which show my salary and dividend paid to me from my limited company
3. VAT paid for the invoice to client


Pls let me know whether I need to submit any additional document other then above mentioned documents .

Regards, Sahu

[jndahmad]

Hello All,

I will be very thankful if somebody answer my question.

When calculating previous 12 months earning with limited company, my question is regarding dividends.

Does home office look into transaction dates in company account or just dividend taken date?

Further explanation of above question:

Example: Dividend transfer date to personal account from business account is 15/01/2014, that dividend is taken because of previous 3 months transactions in business account.
if I select previous 12 months start 01/01/2014 to 01/12/2014. Can that dividend be added into earnings? considering transaction taken place in 2013.

Thanks in advance.

Junaid

[tier1-immigrant]

Hello All,

I will be very thankful if somebody answer my question.

When calculating previous 12 months earning with limited company, my question is regarding dividends.

Does home office look into transaction dates in company account or just dividend taken date?

Further explanation of above question:

Example: Dividend transfer date to personal account from business account is 15/01/2014, that dividend is taken because of previous 3 months transactions in business account.
if I select previous 12 months start 01/01/2014 to 01/12/2014. Can that dividend be added into earnings? considering transaction taken place in 2013.

Thanks in advance.

Junaid

I am also in a similar situation. I asked my accountant. He said when preparing the management of account statement, the earnings period of the limited company start from the date money transferred to business account.

i.e.for whatever dividend you draw you should also show that this dividend is from the money-in transactions during the period
X to Y. So your earning period will be X to Y.

I did call up UKBA for clarification. But that person did not know anything he just readout whats there is guidance document (which is not very clear).

However what I mentioned above is my current understanding as per discussion with my accountant. If someone has shown the earnings as mentioned by you, and got the extension then probably will have to get more details on the same.

This sudden closure of Tier1 extensions is causing lot of trouble.

[rampydi]

Any solution mates?
I am alos in the same situvation

[honey2008]

Hello there,

I had the same issue during my tier 1 extension and had good discussion with one of top accountant

I was told that Business income and dividend are entire two seperate entity

Dividend is the distribution of net profit of the company to its shareholders (Director etc)

I can declare dividend anytime during the year or can carry it forward.

I was told that once the dividend is transferred from business account to personal account of the shareholder,the date of transfer is termed as income date .

But i am not sure how ukba will take into account the business income of previous year or current year or both .

But for peace of my mind I changed the accounting period to fit according to intended 12 month period for application

I would advice to go for good accountant to clarify things
hope this helps

[rampydi]

Hi Honey,

Thanks for your response.

I got my visa till 2018.
No need of accounting period change.
I just took these docs with me.

1. Gros salary confirmation and payment break up on accountant letter.
2. pay slips and dividend vouchers
3. both personal and business bank statements.

safe side
4. Last comapny finacial year accounts (profit loss and Balance sheet)