hsmp extension

[has2004]

Hi guys ,
I arrived in UK with HSMP in March 2004 and opened my company and started doing contracts here .I consulted an accountant about taxes and he suggested to pay myself basic 2000£ salary per month as an employee of my own company and this way it will lead me to yearly 24K income as an employee but offcourse i will be getting dividends from my company and this way i will save some taxes ,expected trading of my company will be like 80K per year out of which i will be giving myself salary as mentioned above and dividends also .Now my question here is
In this particular scenario i will be earning in terms of salary less than 40K per year (keeping in mind that i am the only empoyee and consultant working for my company) .Am i going to have any problem getting extension for next 3 years ?? Will HSMP team consider my earnings and company proft or only my earnings while extending my visa for another 3 years ??

Thanks in Advance

[OFCHARITY]

Hi, I can't answer your question authoratatively but I do believe that if you can prove that it is your own company then that in itself and any profits made by the company is proof of economic activity on your part since the HSMP guidance clearly states that economic activity may include self employment etc.

One question though, how easy was it to start a business in the UK (fees, legal process etc.) and do you find that your client's ask for you to have prior experience working in the UK?

[has2004]

Hi OFCHARITY,
Thanks for reply , yes offcourse i can prove that i am the only director of the company .

To be honest with you this is easy task if you have some one here to guide you otherwise i am sure this is a nightmare to open your own business for people like us who were involved in normal employment in past .But still i can give you some steps here to go with it .
1- try not to open company yourself as this needs lots of
documentation to be done .
2-Contact any accountant or any service provider who will open
company for you they might charge you some £100 but its worth
spending this money
3- A catch 22 situation is that you don't have a contract and you
want to open a comany to start contracting and you are new in
country ( you don't have NI ) . i was in the same position .
NI is depnding upon you job/contract (no NI until you get
job/contract) and opening a company requires NI which you
don't have .So best solution is to get some third party involved
in the process , they open company for you and then transfer it
on your name ( same as i did )

I belive this might be helpful .

Thanks

[OFCHARITY]

Thanks for the advice, and all the best.