Tier 1 Extension - Employer Eligibility

[Sky_High]

One of my client is on Tier 1 dependent visa. She is a successful business woman. I have been preparing her accounts for last 2 years. 3 Months ago her husband (Main Tier 1 holder) has joined her business as an Employee. Last Friday both came to my office and in chat I knew that his extension is due soon and he is going to apply next month with 9 months income from his previous employer and 3 months income from his wife's company. I also understood that he is not looking for job and wants to spend at least a year with his wife's company to increase the market size (He was marketing director in the last company).
Although he does not want any thing from me (He already has payslips which I prepared for him and for 3 other employees in the company. (Her wife only gets dividends)).
Is it morally not wrong? I know that her wife has a strong business and big cash in bank but how can he claim income from his wife's company? Please do not take me wrong but this is some thing I am not confortable with.
Any comments????

[HSK Accountancy Services]

One of my client is on Tier 1 dependent visa. She is a successful business woman. I have been preparing her accounts for last 2 years. 3 Months ago her husband (Main Tier 1 holder) has joined her business as an Employee. Last Friday both came to my office and in chat I knew that his extension is due soon and he is going to apply next month with 9 months income from his previous employer and 3 months income from his wife's company. I also understood that he is not looking for job and wants to spend at least a year with his wife's company to increase the market size (He was marketing director in the last company).
Although he does not want any thing from me (He already has payslips which I prepared for him and for 3 other employees in the company. (Her wife only gets dividends)).
Is it morally not wrong? I know that her wife has a strong business and big cash in bank but how can he claim income from his wife's company? Please do not take me wrong but this is some thing I am not confortable with.
Any comments????

If some one can claim salary from his/her own company working as director then whats wrong morally for husband to be an employee of family company?

There is no legal problem as most personal companies has husband and wife as director and secretarty.

Only thing to consider is that the business is legal and doing trading. You should know that as you are their accountant for last 2 years!

Obviously one can argue that did the husband ever worked in the wife's company but this is difficult to prove. He can just do admin work and marketing work and can still claimed to be an employee.

Hope that answer your query.

[Sky_High]

Thanks for your reply.

I know that there is no legal problem that's why I have used words "Morally Wrong"

If some one claim points as director of his own company than he has to provide not only salary slips and personal bank statements but also evidence of business progress etc. In this case he is providing only salry slips what if there is no business trading? what if company is making loss and he is still getting salry to claim points?

I am not saying that his wife should also submit business accounts and letter from accountant (So I can charge her some fee ) but I am saying that there should be some controls for this type of cases.

You also gave a good example that what if husband is not working in the company and only charging salary to claim points?

I am saying that if one is claiming points to work in his dependent's company than dependent should also provide evidences of business progress.

[HSK Accountancy Services]

Thanks for your reply.

I know that there is no legal problem that's why I have used words "Morally Wrong"

If some one claim points as director of his own company than he has to provide not only salary slips and personal bank statements but also evidence of business progress etc. In this case he is providing only salry slips what if there is no business trading? what if company is making loss and he is still getting salry to claim points?

I am not saying that his wife should also submit business accounts and letter from accountant (So I can charge her some fee ) but I am saying that there should be some controls for this type of cases.

You also gave a good example that what if husband is not working in the company and only charging salary to claim points?

I am saying that if one is claiming points to work in his dependent's company than dependent should also provide evidences of business progress.

Hmm. Actually it is quite good point.

Thinking more on it, HO will do employer checks any way. I think they can spot the linkage between the family company and salary. They might ask to provide the accountant's letter hence more fees for you

On the other hand, the husband should mention this fact in the application or in the cover letter just to be on the save side. If he dont then he will risk the rejection or deception (my personal view).

[Sky_High]

I have spoken to my client about this but she said that their visa adviser does not feel that she should send her accounts and business progress with her husband's application.

[geriatrix]

What may be viewed as "morally wrong" by one may well be "morally right" for another!

IMHO, as long as you are not required to compromise on your (ethical) integrity, let the individual(s) free to do what they want to, even if you view it as "morally wrong". All you can do is offer sane advice. Whether they follow it or not, it is for them to decide. It is their application, and their risk!

All IMHO ...


regards