On Tier1 General (Limited Company) - No work

[mrxyz]

Hi Experts

I'm single on Tier 1 General with a limited company and my ILR application is due on April 2016. My problem is I'm out of work for the last 10 months and have only one invoice for about 10k with in the last 12 months. I have enough balance in my business account so I'm drawing minimum salary and dividend as usual.

Now my question is; To show my earnings about 40k, can I just show my payslip and dividend as usual with just one invoice ? or I just don't have to show my invoice at all and show only personal bank statement, payslips, dividends and accountant letter? will there be any problem ?

Please advise, Thanks

[O_Relly]

This has always been a grey area. In theory, as per the Tier 1 G policy guideline, you are still employed by your limited company and it is paying you your salary + dividends, so you should have no hassle in qualifying with your 40k for ILR.

However, there might be questions raised as to what you were upto due to lack of invoices or income generated by you to the company.

Suggest you wait until moderators and other members with similar experience respond to this query and in the absence of which, would definitely be worth consulting with a good solicitor.

[mrxyz]

Thanks O Relly, much appreciated.
guys, anybody have had similar experience?

[Wanderer]

Don't forget to leave enough funds in the business account to cover VAT/CT/etc or you could be trading insolvently and end up in a tax mess a lot lately have have gone into when applying for visas....

[mrxyz]

Thanks Wanderer for pointing out the very import one. I have just enough fund available. Do you know any one with the similar situation ?

[mrxyz]

Guys, Any more advice ?

[geriatrix]

Guys, Any more advice ?

Read the Tier 1 (General) policy guidance. The documentary evidences you need show to claim points for attributes (e.g. - previous earnings) are the same for settlement as they were for extension.

Just in case you are unaware:

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.

[mrxyz]

Guys, Any more advice ? or anybody have had similar experience?

[kanswam]

MrXYZ
I went through a similar thing where I had no work for nearly 1 year and was fortunate to find a contract at the right time which paid me enough to make the income threshold in Feb for my ILR. Lots of sleepless and fitful nights, so I understand what you must be going through.

For your case, in one sense, you are as an individual making money through salary and dividends. But in actual effect, this is money that your company (being yourself in another sense) made in a period that could be well past the 12-15 month mark. You are simply distributing now what was earned in a different period. So, it is a dicey situation.

I don't recall ever reading a similar case in this forum as I used to search during my jobless period. Best bet would be for you to get advise from professional Immigration solicitor.

Sorry, you may not find this post reassuring or helpful but I thought I should share it.

Best wishes to you for achieving a successful outcome!

[bond.boy203]

I have asked this questions number of time before although I didn't get clear answer I can only suggest you this.

You can show your recent mgt account which will show the profit carried forward from last year and any liabilities if any. on top of this show dividend vouchers and business bank statements. I suggest just provide them with business contract during which your income was earned. Also provide you last year end accounts as well.

I haven't read the policy guideline however I am not sure if its mandatory to provide business invoice as long as you provide dividend vouchers and business bank statement.

But at least from accounting and tax point of view I don't think there is anything wrong from carrying over business profits into next year and declare dividend whether you have business contract or not during your qualifying period and I haven't see anything in the guideline which explicitly stats that the income should be earned by your company ( note your company not you) during qualifying period. My interpretation of declaring dividend itself means you have personally earned that during the qualifying period.


You don't really have a choice except to go with what you have and hope for the best.

[bond.boy203]

This is what I submitted during my ILR although I had contract during qualifying period. Only thing missing in your case is business invoice and business contract ( contract you can still submit the old one)

- Application form
- two photographs
- Passport & BRP
- Personal bank statements for last 12 months
- Business bank statements for last 12 months
- Business invoices for last 12 months
- Dividend vouchers ( only 4 of them as I withdraw quarterly dividends)
- Client contract
- Account letter confirming dividends
- P & L account and balance sheet from accountant
- Company registration certificate***
- VAT Certificate***
- SATR Form (2013-2014)***
- CT 600 form(2013-2014)***


Further details on my application in link below if it helps.

http://www.immigrationboards.com/uk-tie ... 3#p1147271

[karg_g]

Hi

This is a grey area and legally, there is no clause to say you have to be in active employment during your 12 months. Kindly note you and your company is two different entities and that's how the laws are.

I would although suggest to show at least your companies prospects, social and professional networking etc you might tried to keep your company creating revenues etc., Also on your personal capacity you can show if you had any job interviews etc., I would recommend this to keep as back up and don't disclose at the beginning (there is no legal requirement)

Finally ensure your SA, Taxes, VAT are all up to date.

Good luck

[yaser123]

dear friends and professionals,

this is my first time to use this forum i am assure some can help me and answer my question.

i have to apply ILR in april 2016. my corporation tax is unpaid about £3200 some tax is already paid as i was paying it in instalments (dividend drawn from my own limited company) but the company was closed 10 months ago. a few days back i called hmrc to find out about tax which is unpaid as i want to pay the remaining tax. hmrc replied that your company has been closed and the remaining tax £3200 also have been removed for you, and now you don't have to pay any tax. i discussed this with my accountant but he says you must pay the remaining tax otherwise your ILR will be refused. as ukba checks your personal tax and your corporation tax as well.

my tier 1 initial application granted (fully salaried)

tier 1 extension salary from Asda and dividend from my limited company (3200 unpaid tax on dividend)

can you please advise should i pay the remaining tax or should i leave it as it is. because hmrc says your company was closed and your unpaid tax is removed for you.

it will be highly appreciated if some one can really help.