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Limted Company Earnings Criteria

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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limitedco
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Joined: Mon Sep 27, 2010 8:25 pm
Location: UK

Limted Company Earnings Criteria

Post by limitedco » Mon Sep 27, 2010 8:40 pm

All the members and Moderators

I am contractor working on a limited company structure, who is currently on a PSW and planning to move onto Tier 1 General next month. I have a query regarding the earnings criteria for Tier 1.

I invoice my agency on a weekly basis and recieve the money in my limited company's business bank account. At the end of each month I withdraw ( transfer ) salary and dividends to my personal account, since I am the only employee and director of my limited compnay. The question I had is that what is to be considered as my earnings on a limited company structure for Tier 1.

1. Is it the gross salary and gross dividends i pay myself over the year ?

2. Or is it the total turnover of my limited company for the financial year ? ( considering I am the 100% shareholder in the company and all the profits belong to the director ie myself ).

3. What documents do I need to submit to prove my earnings ?

4. Is a contractor working on a limited company basis considered as self employed for Tier 1 ?

Your help and inputs would be highly appreciated.

Thank you all.

limitedco
Newly Registered
Posts: 2
Joined: Mon Sep 27, 2010 8:25 pm
Location: UK

Post by limitedco » Wed Sep 29, 2010 9:05 am

Hope the moderators and members could help me with my query.Its quite urgent.

Thanks

shahid78
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Posts: 85
Joined: Sat Jan 01, 2011 12:39 am

Post by shahid78 » Mon Jan 03, 2011 1:45 am

limitedco wrote:Hope the moderators and members could help me with my query.Its quite urgent.

Thanks
i got exactl same question plz if any body know its answer plz let me know as well, i got a limited compnay and i m director of the compnay and i got 100%shares of my compnay what i m suppose to produce waiting for answer plz

awiating_tier-1applicant
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Posts: 17
Joined: Tue Dec 14, 2010 1:22 pm

Post by awiating_tier-1applicant » Mon Jan 03, 2011 11:25 am

friends, hope this will help you...

http://www.ukba.homeoffice.gov.uk/worki ... documents/

Supporting documents must show all the relevant payments you are claiming points for. If earnings from a particular source have been paid in more than one way, you must send two types of document for each part of the payment claimed. For example, if you have been paid for your salaried employment by means of a salary and a dividend. If the gross and net dividend payments are included on your payslip, and can be supported by details of the net dividend payment on your bank statements, you could send bank statements and payslips as supporting evidence for both the salary and the dividend claimed. However, if the dividend details are not included on the payslips, you must also send separate dividend vouchers to support the dividend payments and cross-reference these with the bank statements you send.

You should give full contact details for each source of income you give us, so we can verify all supporting documents if necessary.

You should also send any information or explanation of the documents you have sent that may help us to consider the earnings claimed. For example:

If you are operating through a limited liability company that is administered on your behalf by a managing agent or accountant. The name on the payment advice may therefore differ from the credit payment entries on your bank statements. You should provide a letter from your managing agent or accountant to clarify the relationship between everyone concerned.
If you are one of a number of shareholders in the business and are claiming for net profits made over the earnings period, you should provide a letter from your accountant, confirming the percentage share you are entitled to receive from the business's net profit before tax.


Employees who receive a salaryA salaried employee could provide a combination of personal bank statements covering the full 12-month earnings period and either:

payslips for the full 12-month earnings period; or
a letter from your employer.
(We consider that payslips and letters from an employer are from the same source and you should therefore not provide a combination of these two types of document.)

Employees who receive a salary and dividend paymentsIf you are paid with a combination of salary and dividends, and both payments appear on your payslip, you could send personal bank statements for the full 12-month earnings period and either:

payslips for the full 12-month earnings period; or
a letter from your employer.
If you are paid with a combination of salary and dividends, and the salary and dividend payments do not both appear on your payslip, you can provide the documents listed above plus dividend vouchers for each dividend payment claimed, showing both the gross and the net dividend.

Self-employed earnings within a business or company structure
If you have worked in a self-employed capacity in your own business or company structure and have chosen to keep your earnings within the business or company, you could send:

business or company accounts that meet statutory requirements and show the net profit made for the earnings period claimed; and
a letter from your accountant confirming the details in those accounts.
If you are not the sole shareholder of the company you should also provide a letter from your accountant confirming your shareholding and the proportion of net profit before tax to which you are entitled for the earnings period claimed.

I hope this will clear your doubts

awiating_tier-1applicant
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Posts: 17
Joined: Tue Dec 14, 2010 1:22 pm

Post by awiating_tier-1applicant » Mon Jan 03, 2011 11:33 am

friends, check out these links which will clear all your doubts...I believe, this information will be more than enough for everyone who are applying by the limited company method;

http://immigrationboards.com/viewtopic. ... ed+company

http://immigrationboards.com/viewtopic. ... ed+company

http://immigrationboards.com/viewtopic. ... ed+company

http://immigrationboards.com/viewtopic. ... ed+company

http://immigrationboards.com/viewtopic. ... ed+company

all the best..:-)

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