Earning query for ILR

[swamik1]

Hi,

I am going to apply ILR as a limited company director. Myself and my wife are director in my company. We have taken dividend on a 50-50 share.

We both have taken dividend of £88,000.00 with a total turnover of £1,03,676.00 and the salary for both of us put together £21,300.00 for 12 months. Apart from this I paid a corporation tax of £12,000.00.

My accountant gave me dividend vouchers for both of us and he also gave earning summary in his company letter head.

Regarding Accounts statement for last 12 months he said he cant give because I cant take this much dividend on the turnover whici I mentioned above. I understand this.

But Home office will ask me accounts statement showing net dividends and profits for 12 months ?

Thanks

[swamik1]

Can anyone please reply ?

Under what category I should be classified - salaried or self employed ?

Home Office very particular about accounts statement for last 12 months ?

Thanks

[geriatrix]

Please will respond if and when they wish to.
So be patient!!

[geriatrix]

Have you read the settlement guidance? Or searched the forum to see what documentary evidence you need from accountant??

Under Part 6A of these Rules, "Self-Employed" means an applicant is registered as self-employed with HM Revenue & Customs, or is employed by a company of which the applicant is a controlling shareholder.

88000 dividend + 21300 salary + 12000 tax = 121,300; On a "turnover" of 103,000!!
Looks fishy ... to me at least ... though I am not a finance person, so don't take my word for it!!

[swamik1]

There is no fishy here. All are genuine earnings. I have sufficient amount of money in my business account from the previous financial year. I did not take much dividend prior to 12 months and saved all my money in business account for the earnings purpose.

My accountant has given me dividend vouchers, payslips and earning letter. Is that ok ?

[Chase53]

There is no fishy here. All are genuine earnings. I have sufficient amount of money in my business account from the previous financial year. I did not take much dividend prior to 12 months and saved all my money in business account for the earnings purpose.

My accountant has given me dividend vouchers, payslips and earning letter. Is that ok ?

Did you submit your self assessment?? You must declare the total dividends taken for each financial year when you submit it.

[geriatrix]

There is no fishy here

Then why the following:

Regarding Accounts statement for last 12 months he said he cant give because I cant take this much dividend on the turnover whici I mentioned above.

When you can't take that much dividend in the preceding 12 months, and the accountant is telling you the same thing = something fishy (not right / more than what meets the eye).

Perhaps because it is not legal / not allowed / a workaround / something you are attempting to do to somehow show that you enough income to score the required points for earning in the last 12 months!! Maybe ... Maybe not ....

Don't be surprised if the caseworker does the simple maths and asks for detailed information about your accounts!!
Or maybe the caseworker will be satisfied with your salary slips, dividend vouchers and bank statements .. and won't ask for anything else!! Who knows ....

Just my opinion .... I am not a finance person so I'll leave it for the experts to tell you if you are on the right track or not.

[swamik1]

The reason why i have taken some much dividend because my 12 month earning fall under 2 financial years. SInce 12months come under 2 financial years i did not have any tax burdern. Moreover i bought a property so i needed extra cash. What i heard is i can taken as much dividend i want if i have sufficient balance.

Still I am bit nervous.

Thank

[swamik1]

Does anyone know how many points are required to satisfy ILR requirements ?

Thanks

[geriatrix]

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