invoices and dividend voucher issues and some others

[email257525]

hi
Friends

When applying for tier 1 gen, in limited company scario,

1. do i have to submit the invoices as well if so what could be the format, can it be on company letter headed paper?
2. Can i pay dividend voucher/profit to myself every month as already taking wages from company or it has to be at the end of the year.
3. Do i need to issue payslips to myself and pay tax and ni as being the only director of the company?
4. Is this necessary to have company land line, a fax and a web site according to hm?
5. Is this compulsary to have company logo on the letter headed papers?

Your replies will be much appreciated
Thanks for reading
Please reply in the context of ho tier 1 gen requirements

[ChetanOjha]

hi
Friends

When applying for tier 1 gen, in limited company scario,

1. do i have to submit the invoices as well if so what could be the format, can it be on company letter headed paper?
2. Can i pay dividend voucher/profit to myself every month as already taking wages from company or it has to be at the end of the year.
3. Do i need to issue payslips to myself and pay tax and ni as being the only director of the company?
4. Is this necessary to have company land line, a fax and a web site according to hm?
5. Is this compulsary to have company logo on the letter headed papers?

Your replies will be much appreciated
Thanks for reading
Please reply in the context of ho tier 1 gen requirements

Can you tell us how do you operate? Do you pay yourself min. salary every month and take extra amount as dividends? If you have been paying yourself a min salary everymonth, you can use payslips of this salary + bank statement. Along with payslips+bank statement, you can provide dividend vouchers(from your accountant) and corroborative bank statement.

As far as your questions:

1.If you are showing yourself as an employee of your own company then you don't need invoices etc. If you are planning to show yourself as Self-Employed then you may need them.
2.Paying yourself dividends in entirely on your descretion. Home Office accepts either way.You can pay yourself monthly or yearly, it's fine.
3.Well if you are showing yourself as employed then YES.
4.NO.
5.NO. To prove your earnings you can get letter from your accountant, you don't even need company letter head.

[email257525]

Thank you for your reply,

I am planning to pay myself minimum salary and take extra amout as dividends,

I will be considered as an employee when working for my own company and taking out wages

I will be self employed when owning my company and taking the dividends as well,

So in my scanirio i will be employee as well as self employeed, Am i right please correct me

1. So am i right you are saying i dont need to submit the invoices (invoices issuedd to customer/clients when selling the goods and services) if i am working for my own company (Employeed and self employeed scanirio)? What if i am not taking out any wages from my company and just taking out the dividends and claim point on that one?

2. Dividends can be taken every months, quarter or yearly? IS it
3. Thanks
4. Thanks
5. Thanks


Please Explain a bit more about question One
Thanks for replying

[ChetanOjha]

Thank you for your reply,

I am planning to pay myself minimum salary and take extra amout as dividends,

I will be considered as an employee when working for my own company and taking out wages

I will be self employed when owning my company and taking the dividends as well,

So in my scanirio i will be employee as well as self employeed, Am i right please correct me

1. So am i right you are saying i dont need to submit the invoices (invoices issuedd to customer/clients when selling the goods and services) if i am working for my own company (Employeed and self employeed scanirio)? What if i am not taking out any wages from my company and just taking out the dividends and claim point on that one?

2. Dividends can be taken every months, quarter or yearly? IS it
3. Thanks
4. Thanks
5. Thanks


Please Explain a bit more about question One
Thanks for replying

Check this and let us know in which category you fall? Many IT contractor runs their own company and bill their clients for the services they provide. Do you have the similar setup.If not, you can me self-employed as well, but cannot tell more unless I have more info.

1. If you are taking out only dividends, you can claim points on income through dividends as well.
2. Yes. Dividends can be taken every months,quarter or year.Most people prefer to take quarterly.

[k820]

1.If you are showing yourself as an employee of your own company then you don't need invoices etc. If you are planning to show yourself as Self-Employed then you may need them

HI chetanojha

I am working as a self-employed and planning to provide two evidence.
1- Accountant letter
2- bank statement

do i need to provide invoices as well? thanks for your in advance

[ChetanOjha]

1.If you are showing yourself as an employee of your own company then you don't need invoices etc. If you are planning to show yourself as Self-Employed then you may need them

HI chetanojha

I am working as a self-employed and planning to provide two evidence.
1- Accountant letter
2- bank statement

do i need to provide invoices as well? thanks for your in advance

You basically need to evidence from two difference source. In case of Self-Employed people you need to provide extra evidences. Also wait for other members to reply.
Just browsed the guidance notes,Page 26 states:

vi) Self-employed applicants only - letter from the applicant’s managing agent or accountant (confirming that the applicant received the exact amount he/she is claiming, or the net profit to which he/she is entitled). This is a letter from the applicant’s managing agent or accountant on headed paper confirming the gross and net pay for the period claimed. The letter should give a breakdown of salary, dividends, profits, tax credits and dates of net payments earned. If the applicant’s earnings are a share of the net profit of the company, the letter should also explain this.
vii) Invoice explanations or payment summaries from the applicant’s managing agent or accountant. These are summaries or explanations created by an applicant’s managing agent (who is usually an accountant). These explanations should include a breakdown of the gross salary, tax deductions and dividend payments made to the applicant. The total gross salary and dividend payments should be the same as the applicant’s earnings. The payment summary should enable us to check that these correspond with the net payments into the applicant’s personal bank account.
viii) 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 expenditure account if the organisation is not trading for profit) and the balance sheet should be signed by a director. Accounts should meet statutory requirements and should clearly show the net profit made over the earnings period to be assessed.

[k820]

Self-employed earnings within a business or company structure:
If an applicant has worked in a self-employed capacity in his/her own business or company structure and has chosen to keep his/her earnings within the business or company, he/she could provide:
business or company accounts that meet • statutory requirements and show the net profit made for the earnings period claimed; and
a letter from his/her accountant confirming • the details in those accounts.
If the applicant is not the sole shareholder of the company he/she should also provide:
a letter from his/her accountant confirming • his/her shareholding and the proportion of net profit before tax to which he/she is entitled for the earnings period claimed

As per guidence notes . I think we need to show two documents.

Correct me if I am wrong ? thnx

[/quote]

[fahadz1]

Thank you for your reply,

I am planning to pay myself minimum salary and take extra amout as dividends,

I will be considered as an employee when working for my own company and taking out wages

I will be self employed when owning my company and taking the dividends as well,

So in my scanirio i will be employee as well as self employeed, Am i right please correct me

1. So am i right you are saying i dont need to submit the invoices (invoices issuedd to customer/clients when selling the goods and services) if i am working for my own company (Employeed and self employeed scanirio)? What if i am not taking out any wages from my company and just taking out the dividends and claim point on that one?

2. Dividends can be taken every months, quarter or yearly? IS it
3. Thanks
4. Thanks
5. Thanks


Please Explain a bit more about question One
Thanks for replying

Check this and let us know in which category you fall? Many IT contractor runs their own company and bill their clients for the services they provide. Do you have the similar setup.If not, you can me self-employed as well, but cannot tell more unless I have more info.

1. If you are taking out only dividends, you can claim points on income through dividends as well.
2. Yes. Dividends can be taken every months,quarter or year.Most people prefer to take quarterly.

I have taken dividend monthly and got approval

[marahman3001]

i operate thru limited company
1. Do i need to send invoices with application?
2. Do i need to show that i paid vat to hmrc? Mine was vat reg comp for sometime , now its not.

[fahad]

i operate thru limited company, i provide services, IT services and teaching, to private individual clients. They pay into company business acc and i get paid in dividends into my personal acc.
1. Do i need to send invoices with application?
2. Do i need to show that i paid vat to hmrc? Mine was vat reg comp for sometime , now its not.

well i send invoices as well . although its not requirment but to make your case strong you can send. my case worker even didnt check the invoice or contracts.. they r looking for only salary/money earned.
no u dont need to show VAT paid. again its not a requirement but you can send as additional supporttine docs.

[ChetanOjha]

i operate thru limited company, i provide services, IT services and teaching, to private individual clients. They pay into company business acc and i get paid in dividends into my personal acc.
1. Do i need to send invoices with application?
2. Do i need to show that i paid vat to hmrc? Mine was vat reg comp for sometime , now its not.

1. Invoices are not required for you. All you have to do it to present payslips(or accountant letter) stating your salary break-up and dividends. This salary breakup and dividend should corroborate your bank statement.

2. No. You don't need to.Don't bother about it.

[marahman3001]

Many thanks for the replies esp. Fahad and Chetan.

Chetan: I did not take salary but just dividends into my personal account. So i dont need to provide Payslips. isnt it?
Just the dividend vouchers and accountant letter mentioning the gross and net dividends, tax credits.

[ChetanOjha]

Chetan: I did not take salary but just dividends into my personal account. So i dont need to provide Payslips. isnt it?
Just the dividend vouchers and accountant letter mentioning the gross and net dividends, tax credits.

Dividend vouchers and accountant letters are considered to be from one source only. You can have them along with Bank Statement.

[marahman3001]

Sorry to mention about the bank statements. I am adding them. Many thanks for your time Chetan. I appreciate for your kindness and help for the needy.

[Sushil-ACCA]

Chetan: I did not take salary but just dividends into my personal account. So i dont need to provide Payslips. isnt it?
Just the dividend vouchers and accountant letter mentioning the gross and net dividends, tax credits.

Dividend vouchers and accountant letters are considered to be from one source only. You can have them along with Bank Statement.

Dividend vouchers are given by company and accountants letter is different source , they are different Chetan

Regards

[skomati]

so the accountants letter confirming dividends is enough or
he need to confirm his net profit figs from accountant? for the above case where he is taking just dividends and no salary..

coz casw worker guidance show " if the applicant is not paid set salary, the case worker must establish how much of the the net profit of the company has been paid to the applicant. The assessment must work on the net profit , as this is the figure that is available as potential earnings(after all the company expenditure has been deducted"

si if take accountant letter confirming the dividends , how case worker establish net profit of the company?

Experts please comment...

[ChetanOjha]

Chetan: I did not take salary but just dividends into my personal account. So i dont need to provide Payslips. isnt it?
Just the dividend vouchers and accountant letter mentioning the gross and net dividends, tax credits.

Dividend vouchers and accountant letters are considered to be from one source only. You can have them along with Bank Statement.

Dividend vouchers are given by company and accountants letter is different source , they are different Chetan

Regards

If your company accounts are managed by a managing agent than I don't understand why letter provided by accountant should be considered as a separate source. It should be considered same as company letter. I don't agree why they should be treated as from separate source.

[Sushil-ACCA]

so the accountants letter confirming dividends is enough or
he need to confirm his net profit figs from accountant? for the above case where he is taking just dividends and no salary..

coz casw worker guidance show " if the applicant is not paid set salary, the case worker must establish how much of the the net profit of the company has been paid to the applicant. The assessment must work on the net profit , as this is the figure that is available as potential earnings(after all the company expenditure has been deducted"

si if take accountant letter confirming the dividends , how case worker establish net profit of the company?

Experts please comment...

Sales 102,000.00
less Expenses 42,000.00

PBT 60,000.00

TAX @21% 12,600.00

PAT 47,400.00

Divd (Say) 45,000.00

Reserves 2,400.00

So dividend gross up 50,000.00 (45000/90%)

HOPE THIS WILL CLEAR

[skomati]

hi, chetan and sushil,, thanks for ur replys..
as per my case scenario,, ltd company and sole director and sole share holder...took only dividends...no salary..
toatl sale:20,000
expenses:3000
Net profit:17000
Dividends: 10000
Tax: xxxxxx

the documents what i am sending are
1. personal bank statment
2. dividend vouchers( signed by secretary on company letter head)
3. accountant letter (just confirming the dividends in tabular form).

My question is : Do i have to include net profit and all the above figs in accoutant letter?

I got enough points from dividend it self, so i dont need to claim points on the net profit ..
please advise me...


Thanks in advance..

[Sushil-ACCA]

hi, chetan and sushil,, thanks for ur replys..
as per my case scenario,, ltd company and sole director and sole share holder...took only dividends...no salary..
toatl sale:20,000
expenses:3000
Net profit:17000
Dividends: 10000
Tax: xxxxxx

the documents what i am sending are
1. personal bank statment
2. dividend vouchers( signed by secretary on company letter head)
3. accountant letter (just confirming the dividends in tabular form).

My question is : Do i have to include net profit and all the above figs in accoutant letter? yes

I got enough points from dividend it self, so i dont need to claim points on the net profit .. both are same -no doubel points
please advise me...


Thanks in advance..

u need 2 of 4 mentioned below

1. Business account of yr company
2. company income statement -acctns leter head
3. Sales summary on acctns letterhead
4 Dividend vouchers

[skomati]

hi, sushil many thanks for ur reply..

1. Business account of yr company ...is this business bank account?

[Sushil-ACCA]

hi, sushil many thanks for ur reply..

1. Business account of yr company ...is this business bank account?

Profit and Loss account and Balance sheet

[skomati]

The final conclusion of documents going to submit for my self employment earnings for ltd company..
Main corrobarative evidence:
1. Dividend vouchers signed by secretary on company letter head..
2.Accountant acting on behalf of me(not for my ltd company), reviewed the dividend vouchers isuused by the company, and confirms the dividends on his letter head..
3. personal bank statement.

Extra evidence because it comes under self employment...:
1. business accounts(p/l and balancee sheet on plain A4 sheet)
2.again accountant letter acting on behalf of the company , confirms the sales, pat,pbt,tax, dividend etc from p/l and balance sheet..
3.business bank account..
4. certificate of incorporation...

and for my salaried earnings from another company:
1. employer letter( i am not going to ask my accountant to confirm these salary as i have the employer letter)
2.bank statement


correct me if any thing wrong..
Any way thank you all on this forum..from last few days , i tested your patience....