Tier 1 General visa rejected, Need help pleaseeee....

[mulkatta]

On 21 march, my application for leave to remain as Tier 1 (general) Migrant is rejected. The reason for refusal given is :"You have claimed 20 points from your previous earning however we (home office) can only award 15 points as we only consider your Net Income, NOT Gross Income".
I'm employed as well as self employed. I need at least 20 points from previous earning i.e. 35,000 per annum salary. I claimed 15,500 from my self-employment (Limited company business) but it is not straight forward as there is some tax credits. As instructed by my accountant, I actually transferred 13,950 pound from my business account to my personal account and this 13,950 is boosted by 10% tax credit (i.e. 13,950/0.9=15,500). But, according to case worker, they have only considered net transfer i.e. 13,950 NOT 15,500. I really got confused. My accountant said, case worker is wrong to consider only Net income excluding that tax credit and I believed him. I lodged appeal and waiting for hearing.
Is there any chances of winning this appeal?
If the case worker mistakely considered my case or s/he misunderstood my case, is there any way case worker re-consider my application? if yes, how??

Best regards,
MU

[nafe12]

See page 19 of the Tier 1 (G) policy guidance:

111. We will assess an applicant’s earnings. If an applicant is in salaried employment, we will assess the applicant’s gross salary before tax. This includes self-employed applicants who draw a salary from their businesses

and

112. If an applicant is self-employed and has chosen to retain the profits within the business, his/her earnings are limited to the share of the business’s net profits to which he/she is entitled

I don't know anything about your business structure, etc. But it would seem to be a mistake if they actually wrote "we only consider NET income" on your refusal letter. Administrative review?

[mulderpf]

I am not so sure that tax has anything to do with it. You cannot "generate" additional profit by withdrawing or transferring funds. If you had profit in your company, whether it was in your business account or not, it would have already been counted. By simply moving it, I don't understand how this suddenly generated this amount of profit?

[aliq09]

On 21 march, my application for leave to remain as Tier 1 (general) Migrant is rejected. The reason for refusal given is :"You have claimed 20 points from your previous earning however we (home office) can only award 15 points as we only consider your Net Income, NOT Gross Income".
I'm employed as well as self employed. I need at least 20 points from previous earning i.e. 35,000 per annum salary. I claimed 15,500 from my self-employment (Limited company business) but it is not straight forward as there is some tax credits. As instructed by my accountant, I actually transferred 13,950 pound from my business account to my personal account and this 13,950 is boosted by 10% tax credit (i.e. 13,950/0.9=15,500). But, according to case worker, they have only considered net transfer i.e. 13,950 NOT 15,500. I really got confused. My accountant said, case worker is wrong to consider only Net income excluding that tax credit and I believed him. I lodged appeal and waiting for hearing.
Is there any chances of winning this appeal?
If the case worker mistakely considered my case or s/he misunderstood my case, is there any way case worker re-consider my application? if yes, how??

Best regards,
MU

Hi ,

Lets make it simple !!! how much do you need to cover 20 points ..? 35,000 and you have to show additional 15,500 from your limited company to add up 35,000. You transfer 13950 why ? it's your mistake .. just see ... you are taking dividend from company and once you say i am taking dividend it's all mate! ( every thing has been minus before the dividend came ) so HO is correct they are saying 13950 as your total income coming to your personal account.

There is one hope , well! in HO calculation , they always see the income before tax not the net income so you can fight on it but my point remain the same

Total earning showed: ( salary) + ( dividend limited company) .. thats what home office need to see .. tax and other issues are with HMRC mate!! the above equation must give you 35K mate! it's simple maths .. your accountant has done mistake

Good luck!!!

[mulkatta]

Thanks for your reply. Thanks to all of you guys.
aliq09 may be right but tomorrow when taxman knocks my door s/he will consider tax for 15,500. That's the business/tax rule in UK. Now, Home office clearly says, they will consider gross income (before tax) in their immigration rules (Appindex A) but case worker didn't understand how gross income is calculated in dividends paid from business. So, who is wrong? Accountant says, he is right to boost my income by tax credit because he needs to show 15,500 GROSS from my business. Isn't it a complete misunderstanding from the caseworker?

[manojk005]

Thanks for your reply. Thanks to all of you guys.
aliq09 may be right but tomorrow when taxman knocks my door s/he will consider tax for 15,500. That's the business/tax rule in UK. Now, Home office clearly says, they will consider gross income (before tax) in their immigration rules (Appindex A) but case worker didn't understand how gross income is calculated in dividends paid from business. So, who is wrong? Accountant says, he is right to boost my income by tax credit because he needs to show 15,500 GROSS from my business. Isn't it a complete misunderstanding from the caseworker?

However one fact remains that tax credit is not your income. It is same as pension contribution by employer. Technically it is given to employee and can be termed as income. But HO does not consider this. They only consider earned income not unearned one!

[adityaisukapalli]

HO must consider Gross Dividend but not Net dividend. You can appeal. 100% this is right and it is according to HO policy. Make an appeal, Case worker did a mistake.

however, your dividend voucher should clearly mention Gross and Net dividend.


All the best....


Best example: Myself.

[HSK Accountancy Services]

HO must consider Gross Dividend but not Net dividend. You can appeal. 100% this is right and it is according to HO policy. Make an appeal, Case worker did a mistake.

however, your dividend voucher should clearly mention Gross and Net dividend.


All the best....


Best example: Myself.

Correct advice. They made the mistake. it is always Gross Dividend.

Did you provide your accounts etc with the application as well?

[mulkatta]

Once again, thanks for your post guys.
yes, I have submitted all account papers like dividend vouchers and other papers from my accountant. And yes my dividend voucher clearly shows Gross and Net dividend paid.
I tried to talk with my caseworker but I couldn't. However I mange to discuss with another caseworker (colleague of my caseworker as HO says) and he clearly says my claim to consider Gross dividend is correct according to HSMP caseworker's guidance published in 2007 But it is wrong to consider gross according to Tier 1 General guidance. However he didn't tell what's written in Tier 1 General guidance (consider gross or Net??).
Of course I got no other choice than go for appeal. Appeal court has give 4 weeks time to submit any other evidence (if any). Now after discusing with caseworker, I got comfused, whether to fight for what I've done (tax credit ) or look for another evidence which can prove I do have sufficient income at the time of application. Professional suggestions Pleaseee....

[nafe12]

Why risk it? Get a lawyer!

[blackthunder]

The case worker is wrong.. go for appeal..

[vjs8in]

HO must consider Gross Dividend but not Net dividend. You can appeal. 100% this is right and it is according to HO policy. Make an appeal, Case worker did a mistake.

however, your dividend voucher should clearly mention Gross and Net dividend.


All the best....


Best example: Myself.

Correct advice. They made the mistake. it is always Gross Dividend.

Did you provide your accounts etc with the application as well?

To my knowledge, Dividend is always Net. The tax on dividend is paid by the company and not the individual. What you earn as dividend is the Gross/net as far as you are concerned. I think the caseworker is right here. You cannot claim the tax paid on dividend as your income.
If the company declares 5% dividend, they pay £5, that is your income and not $5/.9 which is £5.5. Senior boarders can confirm this.

[mtuckersa]

The caseworkers should consider the gross dividend paid to the applicant. Where a breakdown of the dividend payments is given on the pay advice, the gross dividend is the net dividend payment plus the tax credit stated.

Check out this previous earnings document

http://www.ukba.homeoffice.gov.uk/sitec ... rguidance/

[geriatrix]

A word of caution - the link provided above refers to "HSMP caseworker guidance".

While the underlying principle may remain the same, there is no guarantee that UKBA follows the same procedure today to assess eligibility for Tier 1 (General) applications.

[santosh]

Hi, am new to this forum
i got visa refused on the same basis as yours ,HO mentioned in the letter saying that they will only consider NET amount not the gross amount,which i had showed 38,000 gross income into my business account and i transferred that money to my personal account.HO also mentioned that i dont have any right to appeal, so could you please help me

[santosh]

Hi if you could can you pleasecome to private chat

[Sushil-ACCA]

HO is considering Gross profit insole trading business so same for ltd business

but in ltd gross dividend is also 100% correct if a/cs are properly done


so case workers r not a/cs and not master of both sole and ltd, which cause like this confusion and tension to aplicant



yr accountant is correct in grossin up net dividend to count yr income as 15500, from 13950

u will win yr appeal

keep posting

all the best

[tier1_applicant]

Hi, am new to this forum
i got visa refused on the same basis as yours ,HO mentioned in the letter saying that they will only consider NET amount not the gross amount,which i had showed 38,000 gross income into my business account and i transferred that money to my personal account.HO also mentioned that i dont have any right to appeal, so could you please help me

.
are you getting salary as well from business account?

[santosh]

Hi i got refused the visa on the same bases as you did you finally got the visa or not plz reply me ASAP
bye