Urgent - Who can answer this question about Limited Company?

[mubu]

Hi All.

I am on HSMP and have a contract job using my limited company. I am the only person in the company, as director, and I get salary + 100% dividends which I know is valid for renewal of my visa.

Now, the question. My wife has also got a job as a contractor (in a different company). Can I employ her in my limited company and pay her monthly salary, and bill her client? If yes, will it impact my HSMP renewal, because I know that I am the 100% share holder now, but it will not be 100% if I employ someone in my company.

She has to start work on Monday so please advise ASAP, this is very urgent.

Thanks!!!

[ChetanOjha]

Now, the question. My wife has also got a job as a contractor (in a different company). Can I employ her in my limited company and pay her monthly salary, and bill her client?

YES.

If yes, will it impact my HSMP renewal, because I know that I am the 100% share holder now, but it will not be 100% if I employ someone in my company.

NO.This will not affect your HSMP status. Beside you can always transfer some shares to your wife in order to make her anothyer director or hire as secretary. More details can be obtained from accountants but this will not affect your HSMP status. It's your business and you can run it anyway you want(ofcourse in legal limits).

[Sky_High]

Employing your wife or some one else in the company will not affect your share holding %. You can show your wife as a company employee and pay her some salary. However you can not pay her any dividends.
It will not affect your HSMP renewal. However it could help you e.g if you need to show more income than you can pay less to your wife and show remaining as company profit and could show that profit as your dividends.
I strongly recommend it. Even if you do not have work/contract for few month (In other words no income for few months), you can still show earnings as your company would be getting income (for your wife's work) and you can show that income (After paying her some salary) as income of company and thus claim that income through salary and dividends.

[mubu]

Cheers guys this is great news for me, I was worried about my earnings for renewal and almost set her up with an umbrella company!

[mubu]

Guys my wife's company wants her to be a Director....not an employee or secretary.


If I set up both me & her as Directors of my existing company will it impact my visa renewal or earnings points?

[Sky_High]

Why they want her as a director? Its nothing to do with them. They will pay what ever they agreed so company/sole trader or any other arrangement will not affect them.

Have they given any other info. Do they want her shareholder of the company? Remember that directors may not be shareholder of the company (In big companies directors can only be compnay's employees). If they do not want her share holder of the company than just tell them that your wife is director (Just give her official tile Director of Operations or Director of Sout East area etc)

However If your wife becomes shareholder of your company than the earning you can show are ur salary + Dividends (Depends your % of shares)

[mubu]

Why they want her as a director? Its nothing to do with them. They will pay what ever they agreed so company/sole trader or any other arangement will not affect them.

Have they given any other info. Do they want her shareholder of the company? Remember that directors may not be shareholder of the company (In big companies directors can only be compnay's employees). If they do want her share holder of the company than just tell them that your wife is director (Just give her official tile Director of Operations or Director of Sout East area etc)

However If your wife becomes shareholder of your company than the earning
you can show are ur salary + Dividends (Depends your % of shares)

Thanks mate.

I had the same thoughts, why should they ask her to be a director of the company?

Will try talking to them again.

As long as I am the 100% share holder, it does not matter for my HSMP renewal correct?

I can show my salary + 100% dividends for my renewal I hope? Does it matter whether I am the sole director or not? I hope not!

[Sky_High]

Yeh I think that its really worth to speak with them.
To keep things simple: If they do not want your wife to be the share holder of your company than include her as Director. However if they want her shareholder than just form another company for her. This will keep things simple for you.
Once you know the reason, please share with us why they want her director/shareholder? Strange world na

[mubu]

Guys, I had emailed the UKBA office, see the reply below:

Thank you for your enquiry.

Under the rules for HSMP you are not permitted to employ someone in your
limited company.

For information on employing you can contact the Sponsorship & Employers
Helpline Tel: 0300123 4699.


Please advise what I am supposed to do now???

[Sky_High]

Call them
I do not believe that its right anwsar.
Under HSMP and Tier 1 you can start your own business and you can employee as many people as you want.
Some one must gave you this reply in sad moode - while waiting for weekend.

[mubu]

Call them
I do not believe that its right anwsar.
Under HSMP and Tier 1 you can start your own business and you can employee as many people as you want.
Some one must gave you this reply in sad moode - while waiting for weekend.

I am really confused now

I do not want to be in a situation where I realise during my renewal next year that I had made a mistake!!! More so because they have sent an email to me and I am warned in advance!

[mubu]

push or chetan and other other senior members, please help!!!