Query regarding draw salary whn Limited company was in Loss

[dev2tab]

Hi,

I am a new member. I have to apply for ILR in Sep’16. I am currently on Tier 1 General (5 yrs route) working as a permanent job. I have a query, at the time of tier 1 extension I had 2 source of income. One as permanent employee (12 month Salary Slips) + other Self employee as Limited company Director (12 month Salary Slips).

I have paid all taxes + NI contribution. I did not show Business account details at that time as I did not draw DIVIDIENDS. But at the end of that financial year company was in Loss. But I have paid all the taxes like VAT, Corporation tax etc. My visa have granted. After that the company was declared as dormant account.

Now my worried is that will H.O. create any issue or ask how can I draw salary from my limited company when end of the financial year company was in Loss. I just taken salary (Contribute N.I. + Pay Tax) ?

If any issue then what’s the solution.

Please help me

Dev

[dev2tab]

Not a single response almost One week...

Hi,

I am a new member. I have to apply for ILR in Sep’16. I am currently on Tier 1 General (5 yrs route) working as a permanent job. I have a query, at the time of tier 1 extension I had 2 source of income. One as permanent employee (12 month Salary Slips) + other Self employee as Limited company Director (12 month Salary Slips).

I have paid all taxes + NI contribution. I did not show Business account details at that time as I did not draw DIVIDIENDS. But at the end of that financial year company was in Loss. But I have paid all the taxes like VAT, Corporation tax etc. My visa have granted. After that the company was declared as dormant account.

Now my worried is that will H.O. create any issue or ask how can I draw salary from my limited company when end of the financial year company was in Loss. I just taken salary (Contribute N.I. + Pay Tax) ?

If any issue then what’s the solution.

Please help me

Dev

[dev2tab]

Hi,

I need the senior member help. I have already my query previously but I did get any single reply since One week. I need the confirmation for At the time of Tier 1 General visa extension. if Company was in Loss end of financial and claim salary (Paid all taxes and NI) then won't be any issue will ILR. The details as below.

I have to apply for ILR in Sep’16. I am currently on Tier 1 General (5 yrs route) working as a permanent job. I have a query, at the time of tier 1 extension I had 2 source of income. One as permanent employee (12 month Salary Slips) + other Self employee as Limited company Director (12 month Salary Slips).

I have paid all taxes + NI contribution. I did not show Business account details at that time as I did not draw DIVIDIENDS. But at the end of that financial year company was in Loss. But I have paid all the taxes like VAT, Corporation tax etc. My visa have granted. After that the company was declared as dormant account.

Now my worried is that will H.O. create any issue or ask how can I draw salary from my limited company when end of the financial year company was in Loss. I just taken salary (Contribute N.I. + Pay Tax) ?

If any issue then what’s the solution.

Please help me

Dev

[sas_sas]

I dont think there will be any issue with this. You are going to Show last 12 months Salary details for getting your ILR but not the previous years. It is acceptable to keep the Profits in Business Account and use them when needed. Similarly even if the company runs in Losses you can still take salary or dividend.
One good thing is you paid taxes on time. CW may ask you but be prepared with logical answers.

[dev2tab]

Thanks for reply but my worried point from the ILR for at Page number #27

(https://www.gov.uk/government/uploads/s ... 1_2015.pdf)

Company or business accounts that clearly show the net profit of the
company or business
.
Accounts must show both a profit and loss account (or
income and ex
penditure account if the organisation is not trading for profit) and
the balance sheet should be signed by a director. Accounts should meet statutory
28
requirements and should clearly show the net profit made over the earnings
period to be assessed.

------------------------
My previous year finincial was in Loss insted of Profit as per the form details it should be in Profit.

Please reply consedering the above form details.

Regards

Dev

[dev2tab]

I dont think there will be any issue with this. You are going to Show last 12 months Salary details for getting your ILR but not the previous years. It is acceptable to keep the Profits in Business Account and use them when needed. Similarly even if the company runs in Losses you can still take salary or dividend.
One good thing is you paid taxes on time. CW may ask you but be prepared with logical answers.

Thanks for reply but my worried point from the ILR for at Page number #27

(https://www.gov.uk/government/uploads/s ... 1_2015.pdf)

Company or business accounts that clearly show the net profit of the
company or business
.
Accounts must show both a profit and loss account (or
income and ex
penditure account if the organisation is not trading for profit) and
the balance sheet should be signed by a director. Accounts should meet statutory
28
requirements and should clearly show the net profit made over the earnings
period to be assessed.

------------------------
My previous year finincial was in Loss insted of Profit as per the form details it should be in Profit.

Please reply consedering the above form details.

Regards

Dev

[dev2tab]

I dont think there will be any issue with this. You are going to Show last 12 months Salary details for getting your ILR but not the previous years. It is acceptable to keep the Profits in Business Account and use them when needed. Similarly even if the company runs in Losses you can still take salary or dividend.
One good thing is you paid taxes on time. CW may ask you but be prepared with logical answers.

Thanks for reply but my worried point from the ILR for at Page number #27

(https://www.gov.uk/government/uploads/s ... 1_2015.pdf)

Company or business accounts that clearly show the net profit of the
company or business
.
Accounts must show both a profit and loss account (or
income and ex
penditure account if the organisation is not trading for profit) and
the balance sheet should be signed by a director. Accounts should meet statutory
28
requirements and should clearly show the net profit made over the earnings
period to be assessed.

------------------------
My previous year finincial was in Loss insted of Profit as per the form details it should be in Profit.

Please reply consedering the above form details.

Regards

Dev

Please Confirm does it mendatory requirement to show net profit of the company or business while claiming the Salary ony ( No Dividend) for Ltd company director or can we show in case of company Loss ????

Please reply...