Did anyone got extension with Limited Company?

[sunny158]

mi3,

I think you should state you own this company, "economically active" means that you can support yourself and your dependants without public funds. You will be ok. As I know, self-employed people dont need to set up their business or make profit in the first year. One year is too short to do much, especially for self-employment. However, you need to provide your 12 months bank statement and you have to have a business account, as well as a business plan, the business plan should be a detailed one.

I am self-employed as well and I want to get a mortgage, you said you have got a mortgage, please tell me whether you got a mortgage from bank or building society? Your hsmp visa is only one year, was this a concern? what documents did you provide? if you like, you can send messages to answer my question, thanks.

[mi3]

Hi Sunny,

I bank with hsbc both my personal & business banking & went into see them one day b/c they wanted to advise me on what savings account to put my money since my current one wasn't earning much interest. Anyway so I mentioned that I'm considering buying a house & so they went through my mortgage options with me & gave me an agreement in principal there & then.

Then when I was serious I had 2 mortgage brokers out looking for the best deals. They both came back with better rates then HSBC so I applied for a loan, but couldn't get an agreement in principal - very slow & fruitless process. Basically my risk factors were that i had set up business for less than a year, & my visa was only 1 year (the major concern). So I went back to HSBC & began serious talks with them getting the facts & figures. It turned out that after I factored in the broker's fees, arrangement fees, valuation fees etc hsbc was cheaper even with the higher interest rate.
They even signed me up for the Premier service for free - it gives you an even lower interest rate, higher savings rate & free travel insurance (normally costs £20 per month) - extra bonus!

They're clued up on how contracting works & knows that most of our income is from the company, so I gave them my remittance advice for the last 9 months, they already had my personal bank statements & business bank statements, & my current contract which had my rate & the length of the contract. I don't think the checked my visa status.

Would highly recommend HSBC, they've got great customer service (very rare for this country) & are always extremely helpful.

So Sunny,
what is a business account is that just my business bank account, & what goes into the business plan?

Thanks for your reply.

[sunny158]

mi3,

Thank you for your advice about mortgage, I think I have the similar situation with you, my bank is not HSBC, but I have some accounts with my bank, it is saving account, gold account with serveral free insurances, and business account. I should go to see a mortgage advisor in my local branch, they are more flexible, cus normally mortgage lenders ask for at least one year buiness account bank statements and more documents.

Yes, business account is your bisiness bank account, but remember, you need to show that the account is yours. You can get some maketing books, they can show you how to do a business plan, basically, it is environment analysis, SWOT analysis, business and marketing strategies, financial plan etc.

[sunny158]

mi3,

i have one more question, you bought a property, do you pay it as a bisiness investment or personal purchase? You pay the mortgage by buiness expense or personal income, cus personal income is after income and other taxes. I think about it, cus if it is business investment, it is more affordable.

[mi3]

I pay mine through my personal income & that's why my mortgage repayment is higher than my net income. Didn't realise you can do it through your business account.

[John]

sunny158, are you suggesting that a residential property could be bought as a business investment? That is, bought by a company that the person owns, and then the company lets the person occupy it?

If that is indeed the plan then there are certainly tax consequences of doing all that.

[mi3]

Right...I've looked on previous notices about business plans & a website on how to prepare one, & it seems kinda complicated.

Does everyone else think I should tick the box that says I'm self employed & then do a business plan?
There doesn't seem to be anyone else that has gone through this route.

[sunny158]

John,

I am just a sole trader, and I work at home, so if I buy a house, it is for business use as well. I have asked inland revenue, but nobody know whether it is ok or any tax concern, they said a specialist will contact me, but no one contact me.


I dont know why few hsmp people are self-employed, if everybody seeks employment, who is gonna create job?

[John]

I dont know why few hsmp people are self-employed

I do! It is usually better to operate through a Limited Company and to be the shareholder/director of that. That is even after the latest changes in the Corporation Tax rates.

I have asked inland revenue

And asked your Accountant or Tax Adviser? If so, what did they say to your little plan? Did they point out any little problems? Business Rates? CGT on sale of the property? For example!

[xray girl]

Hey,
Dont know if this is too late to help- I recieved my HSMP visa last year based on income from a limited company- my limited company supplied a letter stating that I was actively involved in the day-to-day management of my company by seeking contacts for the company to fulfil. Basically Im a locum and work through an agency, and get paid through a limited company.
Good luck with your application