Ltd Company IT Contractor - FLR Doubts

[schindler]

I am in the UK on HSMP since Mar2007 and my extension is due in Feb2009.

In relation to that I have a few doubts.I have already tried searching for the information in the forums and did'nt get a satifsfactory response and hence this new thread.So please go easy on me

I have my own LTD company of which myself and my wife are equal share holders.We both recieve monthly salary and dividend payments from the LTD company.

After reading the Tier1 extension guidance notes iam not sure which one applies to me

1) Employees who receive a salary and dividend
payments:

2) Self-employed earnings within a business or
company structure:

I think option 1 applies to me as I am not self employed but employed by my LTD company which pays me monthly in terms of salary(payslips)
after PAYE,NI deductions as well as occassionaly profit distribution in the form of dividends.

Is it correct that I go by option1 and would it suffice to submit the following
a) personal bank statements for the full 12-month earnings period
b) payslips for the full 12-month earnings period; or
c) dividend vouchers for each dividend payment claimed, showing both the gross and the net dividend.

Has anyone in the same condition as me apllied for HSMP(TIER1/FLR) extension recently and got without any issues.If yes can you kindly post the list of docs you had submitted as it will help me to cross check mine.

Thanks and have a Nice Day!

[schindler]

Can someone who has already got FLR extension kindly help me please.
Thanks

[republique]

Can someone who has already got FLR extension kindly help me please.
Thanks

It is what you said and it is salary and dividend

[schindler]

Can someone who has already got FLR extension kindly help me please.
Thanks

It is what you said and it is salary and dividend

Thanks republique...

What do u think about the docs to be submitted?

Would it suffice to submit the following
a) personal bank statements for the full 12-month earnings period
b) payslips for the full 12-month earnings period; or
c) dividend vouchers for each dividend payment claimed, showing both the gross and the net dividend.

Has anyone in the same condition as me apllied for HSMP(TIER1/FLR) extension recently and got without any issues.If yes can you kindly post the list of docs you had submitted as it will help me to cross check mine.

[NutanRaj]

Can someone who has already got FLR extension kindly help me please.
Thanks

It is what you said and it is salary and dividend

Thanks republique...

What do u think about the docs to be submitted?

Would it suffice to submit the following
a) personal bank statements for the full 12-month earnings period
b) payslips for the full 12-month earnings period; or
c) dividend vouchers for each dividend payment claimed, showing both the gross and the net dividend.

Has anyone in the same condition as me apllied for HSMP(TIER1/FLR) extension recently and got without any issues.If yes can you kindly post the list of docs you had submitted as it will help me to cross check mine.

you better to submit your company Reg, VAT, and Bank Statements...if possible show the contracts currently your company holds...

[schindler]

Can someone who has already got FLR extension kindly help me please.
Thanks

It is what you said and it is salary and dividend

Thanks republique...

What do u think about the docs to be submitted?

Would it suffice to submit the following
a) personal bank statements for the full 12-month earnings period
b) payslips for the full 12-month earnings period; or
c) dividend vouchers for each dividend payment claimed, showing both the gross and the net dividend.

Has anyone in the same condition as me apllied for HSMP(TIER1/FLR) extension recently and got without any issues.If yes can you kindly post the list of docs you had submitted as it will help me to cross check mine.

you better to submit your company Reg, VAT, and Bank Statements...if possible show the contracts currently your company holds...

Thanks Nutanraj...did u get the extension as a contractor and did u submit all the company related papers such as company registration forms,VAT etc? ...Thanks

[1971]

Hi Mate,

Submit Coy reg cert,coy utilities bills,audited report by ur accountant,copies of contracts,bank statements,VAT reg where applicable,tax returns, cover letter explaining in simple and clear terms your activities and other documents for your application. I did same and got my approval.

Cheers
1971.

[sunil.suneel]

Another quick question in this regard is , what would be the total income that needs to be counted.

Is it the Total Invoiced amount ?
Is it the salary + dividends deposited to our account ?
Or is it the total invoiced amount excluding the VAT ?

Regards
Sunil

[John]

I do not think it is actually any of those! I think that the gross salary, before any deductions, should be counted, and as regards the dividends, you should count not just the amount of the dividends but also the accompanying tax credit.

That is certainly the amount that the person is taxed on.

[sunil.suneel]

I do not think it is actually any of those! I think that the gross salary, before any deductions, should be counted, and as regards the dividends, you should count not just the amount of the dividends but also the accompanying tax credit.

That is certainly the amount that the person is taxed on.

Thanks John

So that would be the Total Invoiced amount that would include VAT, Corp tax, personal tax, dividend, salary, and other expense.

Or just the Dividends+Salary+Personal Tax and neglect the VAT & Corp Tax ?

[sunil.suneel]

Hey guys

Can some one clear my doubts on whats the total earnings to be mentioned in the cover page? i.e. will it be the total amount invoiced including the Corp Tax and Dividends and VAT ?

I need to file in a couple of weeks and need to collect the documentation for the same.

Kind Regards
Sunil

[republique]

Hey guys

Can some one clear my doubts on whats the total earnings to be mentioned in the cover page? i.e. will it be the total amount invoiced including the Corp Tax and Dividends and VAT ?

I need to file in a couple of weeks and need to collect the documentation for the same.

Kind Regards
Sunil

For goodness sake, the question was answered and you keep garbling it up with other stuff. What is VAT for What is Corp Tax for. Why don't you use an accountant or even go to the bia site because from what they say you would get your answer.

[sunil.suneel]

Hey guys

Can some one clear my doubts on whats the total earnings to be mentioned in the cover page? i.e. will it be the total amount invoiced including the Corp Tax and Dividends and VAT ?

I need to file in a couple of weeks and need to collect the documentation for the same.

Kind Regards
Sunil

For goodness sake, the question was answered and you keep garbling it up with other stuff. What is VAT for What is Corp Tax for. Why don't you use an accountant or even go to the bia site because from what they say you would get your answer.

Dude , whoever you are, why are you being so impatient, if you are not interested in responding, then please dont, there is no need to be harsh, some one with more patience will do.

Am just trying to clear up on my doubt, and thanks for your kind response anyways.

Take a chill pill mate !

[republique]

Hey guys

Can some one clear my doubts on whats the total earnings to be mentioned in the cover page? i.e. will it be the total amount invoiced including the Corp Tax and Dividends and VAT ?

I need to file in a couple of weeks and need to collect the documentation for the same.

Kind Regards
Sunil

For goodness sake, the question was answered and you keep garbling it up with other stuff. What is VAT for What is Corp Tax for. Why don't you use an accountant or even go to the bia site because from what they say you would get your answer.

Dude , whoever you are, why are you being so impatient, if you are not interested in responding, then please dont, there is no need to be harsh, some one with more patience will do.

Am just trying to clear up on my doubt, and thanks for your kind response anyways.

Take a chill pill mate !

First of all I did answer
second, asked and answered by several people
Thats why everyone stopped answering for a complete month so I suggest you take the hint and try to read the thread over for your answer.
And further you got some more advice, go to the bia website so use the information instead of telling me to take a chill pill. Perhaps you should take a learning pill.

[balaganm]

those r the documents u will need....

- Letter from the accountant with breakdown of salary (gross and net) and dividend(gross, net and tax credits)
- Personal bank statements
- Source of income proof from agent
- Business Bank Statements.
- Invoice summary from accountant.
- VAT Registration certificate.
- HMRC Tax Registration documents.

I am in the UK on HSMP since Mar2007 and my extension is due in Feb2009.

In relation to that I have a few doubts.I have already tried searching for the information in the forums and did'nt get a satifsfactory response and hence this new thread.So please go easy on me

I have my own LTD company of which myself and my wife are equal share holders.We both recieve monthly salary and dividend payments from the LTD company.

After reading the Tier1 extension guidance notes iam not sure which one applies to me

1) Employees who receive a salary and dividend
payments:

2) Self-employed earnings within a business or
company structure:

I think option 1 applies to me as I am not self employed but employed by my LTD company which pays me monthly in terms of salary(payslips)
after PAYE,NI deductions as well as occassionaly profit distribution in the form of dividends.

Is it correct that I go by option1 and would it suffice to submit the following
a) personal bank statements for the full 12-month earnings period
b) payslips for the full 12-month earnings period; or
c) dividend vouchers for each dividend payment claimed, showing both the gross and the net dividend.

Has anyone in the same condition as me apllied for HSMP(TIER1/FLR) extension recently and got without any issues.If yes can you kindly post the list of docs you had submitted as it will help me to cross check mine.

Thanks and have a Nice Day!

[nnj10]

Hi John,

I am in the same boat as schindler.

Just saw your post about using the gross dividend figure, as an earning.
I was of thinking that the tax credit in the dividend,takes care of the fact that, dividend is declared out of companies net profit (after paying corp. tax), so it is basically franked by corp tax off the company's gross profit.
I had always thought that it is the net dividend that has to be included in the earnings, but after reading your post(and reading over guidance notes,which clearly says pre-tax earnings), I agree that the dividend one can claim should be pre-tax (including tax credit).

Thanks for highlight this simple fact....John
(Many people like myself would have thought, the dividend one can claim is the earning that has reached the bank account!!!)

Also as Schindler, said in the beginning, I would appreciate, if someone who is working through a LTD CO. and has applied as a Salaried Employee(of that LTD CO), can give the details of the evidence submitted.