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At present yr set up is finemaverick0422 wrote:I am a Tier 1 General visa holder. My spouse is Tier 1 General dependant visa holder. I have to extend my visa in Sep 2012. For the same I need to show income proof for last 12 months.
I have formed a limited company for which I am the sole shareholder and director. My spouse is an employee of this limited company. Both of us work for different clients but send invoice from my limited company so that all payments comes to the same business bank account of my limited company. Both of us draw a tax friendly salary from this limited company. However, 100% of the dividend is send to me since I am the only shareholder. Based on the above circumstances is it legally possible for me to apply for Tier 1 General visa extension in Sep 2012 showing the dividend income as the income proof for last 12 months? Please advice. Many thanks I advance.
tier1visaissues wrote:My situation is similar.
I am the sole director and sole shareholder of a limited company. I have been taking monthly net salary and dividend from the company bank account through online transfers. Also my accountant issues a online payslip that shows both salary and dividend payment. He also looks after PAYE, tax and NIC.
Now for tier1 (general) extension, is it okay if I send the following documents?:
1. Payslips printouts
2. Bank statements showing monthly net payments
if these salary from self managed company than
redy with
A/CS
BANKS STMTS -BUSINESS
PAYE PAYMENTS PROOFS
Also since the payslips are online, who should sign it as ukba website says it needs to be signed and stamped. Stamp is okay, but since I am the only director and shareholder, should I sign it myself? Not sure, becuase it is possible conflict of interest.
Should I also include letter from accountant?
Do I classify as employee or self employed as I am the only director?
Self employed no need to pay ni -2 £2.2 / week if u r director of a company
if sole trader , yes you have tp pay £2.2 ni / week
Should I send any other supporting evidence for earnings?
Please provide answers to my queries. Many thanks in advance.
tier1visaissues wrote:Thank you Sushil ji for your reply.
I am little confused though.
1. Its a limited company, I am a director.. do i still need to send the company bank statements? As I am a director which is like being a employee of the company, I was hoping that the payslips and personal bank statements showing net payments will be good enough? Do i need to send company bank statements as well - if yes, then pls clarify why?
Ans = Its ideal to send the Business bank statements (which shows gross for the stated period and can be cross verified by the Invoice been charged) as you are running a SME (small and medium enterprise). Note: Moderator please advice if this is correct
2. What about attesting the payslips? can i do so being the director of the company or should my accountant do it?
Ans = If you have a company secretary then, they can sign the payslip (if you are using a personal bank account to transfer your salary / didivends from business bank account). But if you are the Director of the Limited company and want to show Business bank statements cross verified with personal bank statements, then you may rather have the A) invoice and the B) Business bank statements to show the proof of earnings for the Limited company. Guidance notes of Tier 1 application page 27 of 47 says the following:
A) Invoice section vii) Invoice explanations or payment summaries from the applicant’s accountant. These are summaries or explanations created by an applicant’s 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. All accountants must be either fully qualified chartered accountants or certified accountants who are members of a registered body, see section on providing evidence from an accountant or accountancy firm.
B) Business Bank statements ix) , Business bank statements showing the payments made to the applicant: Bank statements provided must be on official bank stationery, and must show each of the payments that the applicant is claiming. If the applicant wishes to submit electronic bank statements from an online account he/ she should also provide a supporting letter from the bank on company headed paper confirming that the documents are authentic.
3. Also, since i am the director, I believe I am an employee. But Since I am the sole director, am I self employed as well?
Ans = Not sure if the sole Director can be called as Self-employed. But depends on the structure that you have formed. You can better check with the accountant who knows the Home office requirements. If you follow the standard practice most contractors do as ...
Director of Limited company (sole shareholder of company) => Also pays to self via salary (minimum monthly amount) and remaining funds in form of Dividends.
Note: The Dividends can be in form of every month OR can be Quarterly.
Again moderators please provide your expert advice on the responses if you think otherwise.
Thank you for your reply.antony wrote:Hi frnd,
Please find my replies in blue.
tier1visaissues wrote:Thank you Sushil ji for your reply.
I am little confused though.
1. Its a limited company, I am a director.. do i still need to send the company bank statements? As I am a director which is like being a employee of the company, I was hoping that the payslips and personal bank statements showing net payments will be good enough? Do i need to send company bank statements as well - if yes, then pls clarify why?
Ans = Its ideal to send the Business bank statements (which shows gross for the stated period and can be cross verified by the Invoice been charged) as you are running a SME (small and medium enterprise). Note: Moderator please advice if this is correct
2. What about attesting the payslips? can i do so being the director of the company or should my accountant do it?
Ans = If you have a company secretary then, they can sign the payslip (if you are using a personal bank account to transfer your salary / didivends from business bank account). But if you are the Director of the Limited company and want to show Business bank statements cross verified with personal bank statements, then you may rather have the A) invoice and the B) Business bank statements to show the proof of earnings for the Limited company. Guidance notes of Tier 1 application page 27 of 47 says the following:
A) Invoice section vii) Invoice explanations or payment summaries from the applicant’s accountant. These are summaries or explanations created by an applicant’s 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. All accountants must be either fully qualified chartered accountants or certified accountants who are members of a registered body, see section on providing evidence from an accountant or accountancy firm.
B) Business Bank statements ix) , Business bank statements showing the payments made to the applicant: Bank statements provided must be on official bank stationery, and must show each of the payments that the applicant is claiming. If the applicant wishes to submit electronic bank statements from an online account he/ she should also provide a supporting letter from the bank on company headed paper confirming that the documents are authentic.
3. Also, since i am the director, I believe I am an employee. But Since I am the sole director, am I self employed as well?
Ans = Not sure if the sole Director can be called as Self-employed. But depends on the structure that you have formed. You can better check with the accountant who knows the Home office requirements. If you follow the standard practice most contractors do as ...
Director of Limited company (sole shareholder of company) => Also pays to self via salary (minimum monthly amount) and remaining funds in form of Dividends.
Note: The Dividends can be in form of every month OR can be Quarterly.
Again moderators please provide your expert advice on the responses if you think otherwise.
If so, are you planning to use the Personal bank statements corraborated with (pay-slips + Dividend vouchers) reflecting the salary and Dividends?tier1visaissues wrote:Sushil,
I am providing personal bank statements and payslips along with with accountant letter.
I am worried to provide business bank account statement as it would mean I am claiming earnings for business and create confusions.
As a third party proof, do you think personal bank statements will be enough?
Kind reply. Thanks.
Hence, Just want to know if an individual is operating through a Limited company, Does the company need to be registered as Self-employment with HMRC. This is to comply with the HMRC rules and regulations.That, if an individual is claiming earnings from self-employment in the UK, they must demonstrate that they are registered for self-employment in the UK.
HMRC KEEP file of each entity that is regidtration of HMRC IN CASE OF LTD they write to directors for accounting period with hmrc no.antony wrote:I was just going through the new changes outlined in the UKBA Home office website.
http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary
Page 61 of 67:[Amendments to bring existing requirements into the Immigration Rules]Hence, Just want to know if an individual is operating through a Limited company, Does the company need to be registered as Self-employment with HMRC. This is to comply with the HMRC rules and regulations.That, if an individual is claiming earnings from self-employment in the UK, they must demonstrate that they are registered for self-employment in the UK.
Seniors, Could you please advice on the above principle from Home office while preparing for visa extension?
im in same position, should i calssify myself as self employment? i called HRMC to register, they said that they can not register for you, you are not self employment, you are employee in your own company.Sushil-ACCA wrote:HMRC KEEP file of each entity that is regidtration of HMRC IN CASE OF LTD they write to directors for accounting period with hmrc no.antony wrote:I was just going through the new changes outlined in the UKBA Home office website.
http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary
Page 61 of 67:[Amendments to bring existing requirements into the Immigration Rules]Hence, Just want to know if an individual is operating through a Limited company, Does the company need to be registered as Self-employment with HMRC. This is to comply with the HMRC rules and regulations.That, if an individual is claiming earnings from self-employment in the UK, they must demonstrate that they are registered for self-employment in the UK.
Seniors, Could you please advice on the above principle from Home office while preparing for visa extension?