Extension Approval - Can we post here please!!

[careforthem]

I understand that thru a limited company and own limited company are the best options to get more money ( as they probably pay less tax and have some mechanism for the same).

I do contracting as well....I dont think I will risk paying less tax atleast in the first year. Home Office are quite aware that these umbrella companies only make people pay less tax through various false arrangements.

Please remember that the main goal of the home office letting us stay here is to contribute towards the british economy....(i.e. pay full taxes!)

[slor]

Posted Special Delivery Wed. 11 January
Received confirmation letter Fri. 13 January
Received passport and docs Thu. 19 January

Supporting documents: 12 months of wage slips

[ybb77]

Is there any know case where the extension is given for less than or more than three years?
Cheers.

I havent heard of anyone getting an HSMP extension of more that three years. Sometimes when the case workers are not satisfied with your economic activities they may give you extension of only a year. That happens especially in cases where the applicant remains unemployed during the initial one year.

Do you think a low salary like 11 K will affect the extension? And how about the self-employment if the company is newly set up? And is the employment contract or the employer's letter necessary for the extension?

[John]

Home Office are quite aware that these umbrella companies only make people pay less tax through various false arrangements.

Not so! If the arrangements were false they would not work for tax purposes!

Indeed it is no good just putting various arrangements in writing. The actual way that things are done needs to accord with those written arrangements, otherwise HMRC will find it easy to conclude there are verbal contracts in place, somewhat different from the written ones.

[ybb77]

Hello, can you give me some advice about my situation?

Expiry Date 28 April 2006
Started working immediately, but no written employment contract, and low pay, only 11K. In this January, registered two companies, and planning to give up the shabby job and focus on my own business.

Documents available with the FLR application can be :
10 m payslips
12 m bank statement (over 5K)
tenancy agreement
company registration documents
passport and photographs
job offer by the present employer issued before the approval of HSMP
probably completed or half- completed company website or leaflets
Gas, electricity, landline, broadband bills

Will those be enough?
Will it be all right without employment contract or reference letter?

Any useful advice will be appreciated.

[John]

If we quickly look at the relevant part of Section 6 of the guidance notes on the form FLR(IED) we will see that it says :-

For HSMP extensions: If you have applied for a HSMP extension, you must submit documents that demonstrate the following:

• your economic activity and your personal earnings to date if you are employed, during your stay under the Programme;
• evidence of the business you have established, if you are self-employed, such as a business plan and evidence that you have established a business bank account;
• if you are not economically active you will need to provide evidence to show that you have taken all reasonable steps to do so during your stay in the UK e.g. several job applications relevant to your skills and experience.

So as regards your business, do you have a business plan? If so, that might be useful.

And when you say "company registration documents ", what do you mean? Certificate of Incorporation? Form 10 or form 228a appointing you a Director? Form 88(2) allocating shares to you?

[ybb77]

Yes, Forms to the companies house. But what does business plan mean? a very detailed plan or just roughly what I am going to do? If the company websit or leaflet design is completed or half completed, will it be enough? also, I can provide lots of evidence to prove I am actively looking for jobs in my field. And If I make the application by the end of this Feb,(two months in advance), the payslips will be to the date. But I am a little worried about the employment contract which is not available.

Thank you for your reply anyway!

[John]

Business plan? This website might assist.

I am a little worried about the employment contract which is not available.

I am not sure it matters that much, given the other evidence you will be submitting about the employment, but wonder why you don't have a contract of employment? It is a legal requirement for an employer to give a written contract of employment to employees within, I think, two months of joining.

[ybb77]

I looked up the employment law. employment contract can be written or oral. And that's the reason why I feel worried. Because I am very unhappy about what they did to me recently, they even don't give the paid holiday for the first year, and I am going to ask for the help from the citizen advisor, in this case, I don't think they are willing to give me a proper reference letter.

At the same time, I registered my companies. I need time to speed up my business, for example, to finish the website or leaflet design, to open business account, to find an office, etc. But I am not quite sure if I can provide enough evidence regarding the above.

[Rex]

Hi

I have a company but I am not trading.

I have business account with barclays and website is up n running from day one.

For business plans barclays offered me a software BUSINESS PLAN PRO

It gives sample plans for all fields. You can try that.

For succesful extension it is important to give

1) Business Bank Account Details, which must be active.
2) Business Plan, detailing your marketing strategies and your target of profit etc.
3) Letters from your clients saying that they are happy with your service.
4) Company Documents

But I myself feel that it is harder to get extension with limited company as no one has gone thru it and no proper sample documents available.

[ybb77]

I've talked to some agencies. they said if I had stable income for the first 10 months and then gave up the job to focus on my own business and able to provide evidence that I have been doing something towards that, the extension will be ok.
I feel headache, because I really don't want to work for the company any more and cannot make sure whether it's ok if i give up the job.

[ybb77]

Hi

But I myself feel that it is harder to get extension with limited company as no one has gone thru it and no proper sample documents available.

Have you had your extension done yet?

[John]

I looked up the employment law. employment contract can be written or oral.

Yes BUT! As stated on this webpage :-

If an employee is taken on for more than one month, by law, they are entitled to a written contract within two months of initial employment.

(my emphasis)

So the employer is required to to give you a written contract. Insist upon it!

they even don't give the paid holiday for the first year

I have a one word comment about that ...... illegal! Your rights are confirmed on this webpage.

Now you might not want to take action now, but after you have left, you might be inclined to ensure that you get everything due to you, and if they refuse, issue a claim in the Small Claims Court.

[fabiopg]

Hi fellows,

My initial one year finishes at April 25, and I am planning apply for extension about February 28.

I was taking a look at the form and they ask if I am paying rent. In my case, I rented a room in a house and I don't have a contract. Would it be a problem?

Another point, they ask for evidence that I have funds to maintain and accommodate myself without recourse to public funds. I am currently working, but I only have 1K in savings. Would it be a problem also?


Regards,

Fabio.

[MWazir]

I was taking a look at the form and they ask if I am paying rent. In my case, I rented a room in a house and I don't have a contract. Would it be a problem?

A written contract is prefreble but if you dont have one, its not a problem.

Another point, they ask for evidence that I have funds to maintain and accommodate myself without recourse to public funds. I am currently working, but I only have 1K in savings. Would it be a problem also?

High savings is not as important as showing your payslips and bank statements. As long as you have been economically active, you shouldnt have any problem.

[John]

Renting a room? No problem ... just tick the "Privately rented by you?" box.

Obviously the amount of rent needs to be entered in the box provided.

[gulgon]

Just wanted to contribute to this topic. As far as I can understand 3 extention depends on

- being economically active, though it might be even for a few months, and
- salary is not a key indicator as I can see. I remember someone saying 15k was enough and indeed I talked to a guy who was working in Scotland with 15K and got extention without problem. This is important for non-IT/technical guys, like me, who are offered much lower salaries unfortunately.
- even if you dont be active or stay less than 9 months in the UK, they can give you another 1 year extention

Hope I summarised correctly. I was wondering if there is any summary of all 3 year extention tips somewhere.

[topoftheworld]

All,
Here's the details about the approval of my HSMP extension application:

Application posted : 26 Jan 2006
Credit Card charged : 27 Jan 2006
Acknowledgement letter received : 31 Jan 2006
Extension approved on : 02 Feb 2006
Got stamped passports back : 04 Feb 2006

Good luck to you all.


Cheers

[careforthem]

Hi

What documents did u send with your application?

[framemuller]

I'm in the process of completing my FLR extention form

According the guidence notes for SECTION 2 page one
"Full Name of UK Employer" must be "HSMP", did I read the guidence notes correctly, normally I would have just put my actual employer name..

Section 5, 29: "Your HSMP Refence", on my approval letter, is has 2 references: "Our Reference" & "Your reference", obviously I need to state "Your reference"?

Can somebody please confirm?
Cheers!
Frame

[busa]

I understand that thru a limited company and own limited company are the best options to get more money ( as they probably pay less tax and have some mechanism for the same).

I do contracting as well....I dont think I will risk paying less tax atleast in the first year. Home Office are quite aware that these umbrella companies only make people pay less tax through various false arrangements.

Please remember that the main goal of the home office letting us stay here is to contribute towards the british economy....(i.e. pay full taxes!)

The limited company has to pay corporate tax. Not sure of the percentage, I think it is 20 percentage. In short you are contributing to the economy at the same time saving some money for yourself.

My query: When you apply for extension due submit the limited company documents and your personal pay documents?

[indian_in_uk]

HSMP Extension application:

1) Application sent on 23rd Feb (Initial visa was expiring on 7th April so 5 weeks earlier)

2) Fees deducted on 24th Feb

3) Acknowledgement letter received on 28th Feb dated 24th Feb

Would let you know when I get my passports back..

[mjwall]

All,

Here's the details about the approval of my HSMP extension application:

Code: Select all

FLR(IED) Extension posted        : 21st February, 2006
FLR(IED) Fee Processed           : 22nd February, 2006
Acknowledgement letter received  : 23rd February, 2006
Extension approved on            : 27th February, 2006
Returned documents and passports : 1st March, 2006

Documents Sent:
- 2 x Passports
- 1 x FLR(IED) application
- Cover letter
- Explaination of what was in the enclosed application
- 12 months payslips
- Current and past job contacts for past 2 years
- 12 months bank statements
- Printout of online savings account statement
- 12 month detailed budget of income / expenses for 2006/07

Cheers to all that contribute to this forum.

[fabiopg]

Hi,

I sent my application for renew today:

Documents Sent:
- UK Postal order payment
- FLR(IED) application
- Passport
- Police registration certificate
- Explaination of what was in the enclosed application
- Employment contact
- 3 months payslips
- 4 months bank statements

My visa is gonna expire on April 25. So I drew a blank and I did not send it wthin 5 weeks of expiry. Hope it does not get me trouble.

I will let you know the details of my process.

Cheers.

Fabio.

[MWazir]

My visa is gonna expire on April 25. So I drew a blank and I did not send it wthin 5 weeks of expiry. Hope it does not get me trouble.

They accept upto 2 months from the date of expiry. So you should be alright.