ILR Application : Dividend Query

[sriramkr]

Hi Guys,

Please help me on this .

My Case : WP (2006) + HSMP (2007) + Tier1 (General ) 2009 and I am due to apply my ILR Visa this month.

During my Tier 1 Visa , I am wokring as full time employee and I have claimed 36 K as my salary and I got 40 points . Now I am working as Contractor since 01st Jan 2010 through Ltd Company and I am 100 % Share holder .I am taking only salary every month 1000 pounds and I have not taken any dividend between 01/01/2010 to 31/12/2010.I have submitted the first year accounts for the period 01-JAN-2010 to 31-DEC-2010 and full dividend came around 21 K ( profit - CT Tax) . I have transfered that amount to my personal account in Jan 2011 .I have also taken the interim dividend of 3K in Mar 2011 .

I like to show my earnings between 01 Apr 2010 to 31 Mar 2011

Salary : 12 K
Dividend : 21 K (JAN 2011 ) + 3 K ( MAR 2011 ) - 24 K

MONTH SALARY DIVIDEND TOTAL

Apr-10 1000 + 0 = 1000
May-10 1000 + 0 = 1000
Jun-10 1000 + 0 = 1000
Jul-10 1000 + 0 = 1000
Aug-10 1000 + 0 = 1000
Sep-10 1000 + 0 = 1000
Oct-10 1000 + 0 = 1000
Nov-10 1000 + 0 = 1000
Dec-10 1000 + 0 = 1000
Jan-11 1000 + 21000 = 21000
Feb-11 1000 + 0 = 1000
Mar-11 1000 + 3000 = 3000

TOTAL 12000 + 24000 = 36000

My accountant told me you have taken dividend in Jan 2011 and this will be counted as JAN 2011 Income not for the period Jan 2010 to 31 DEC 2010 .

Is my accountant is correct here or 21 K is divided into 12 months and I am eligble only 1750 per/month as dividend .

Please adivse on this .

thanks in advance.
Sriram

[sriramkr]

Hi Experts ,

Please advise me on this .

[sriramkr]

Hi Senior Guys ,

Please advise me on this as I am going to meet my Accountant tomorrow to discuss on this.

Please help me with dividend query.

thanks in advance
Sriram

[sriramkr]

Hi Guys ,

Any one can advise me on this or am asking silly question .

Regards,
Sriram

[abbi123]

what did your accountant said???

you have to trust your accountant....as you pay him to do the job

[sriramkr]

Thanks for your reply abbi123 .

Yes, I have to trust my accountant but before I apply , I should not make any mistakes to fall my visa rejected as I am not familiar with how dividend options works for Tier 1 earnings. When I applied earlier , I am on fulltime employment.

My Question is I got the final dividend of 21 K for the year end of 31 DEC 2010 and I have taken this only in Jan 2011 , Will this dividend amount is consider for Jan 2011 income or 12 months period of Jan 2010 to Dec 2010 ,when considering the earnings for SET(O) .

I am going to show my earnings for May 2010 to APR 2011 as below
Salary : 12 K
Dividend : 21 K ( Jan 2011) + 3 K ( MAR 2011 ) .

if they think 21 K is 12 months period then I am in trouble .

Please adivse.

[abbi123]

As per my understanding and also remember i am not expert..i jsut used my common sense
you said I like to show my earnings between 01 Apr 2010 to 31 Mar 2011

from the new guidence, we need to show income from the past 12 months of 15 months
and you said you took dividend in jan , which is with in the time as said by you

so not to worry.....

[ilrjune11]

Thanks for your reply abbi123 .

Yes, I have to trust my accountant but before I apply , I should not make any mistakes to fall my visa rejected as I am not familiar with how dividend options works for Tier 1 earnings. When I applied earlier , I am on fulltime employment.

My Question is I got the final dividend of 21 K for the year end of 31 DEC 2010 and I have taken this only in Jan 2011 , Will this dividend amount is consider for Jan 2011 income or 12 months period of Jan 2010 to Dec 2010 ,when considering the earnings for SET(O) .

I am going to show my earnings for May 2010 to APR 2011 as below
Salary : 12 K
Dividend : 21 K ( Jan 2011) + 3 K ( MAR 2011 ) .

if they think 21 K is 12 months period then I am in trouble .

Please adivse.

The salary you took is the net salary. For claiming points it is clear that you need to consider GROSS salary (which is more than the net amount). Regarding dividend, I am not sure which amount to consider. My understanding is that the amount we take is the NET dividend. If producing dividend vouchers as evidence, the guidelines clearly state to mention NET DIVIDEND and TAX CREDIT. For example if you took £1000 as dividend (the amount coming into your account), the dividend voucher should mention..
Net dividend = 1000.00
Tax credit = 111.12
Gross dividend = 1111.12

Not sure if we need to consider the net dividend (£1000.00) or Gross dividend (£1111.12) to claim points? I asked this question before but got no reply. May be you could try asking your accountant.
(If the gross dividend is to be taken into consideration we can jack up the earning by 10% (tax credit) and also provide proof of corporation tax payment?)

[sriramkr]

Hi abbi123 , thanks again .
Yes , final dividend with in the 12 months period , that's OK .
I have filed my accounts for 01 JAN 2010 to 31 DEC 2010 and full final dividend taken in Jan 2011 .This comes 1750/Month

If i want show my earnings for 01 APR 2010 to 31 MAR 2011 , will they consider only 9 months from 21 K or full 21 K .

Will they ignore Jan 2010 to Mar 2010 ( 21 K/12 * 3 ) Why I am asking this is again I am taking interim dividend of 3 K for JAN 2011 to MAR 2011 .

Dividend is overlapping in two accounting years and that's confusing me !

[sriramkr]

Hi Guys ,

Please adivse what happens if dividend fall into two accounting years.

thanks in advance.

[MyHSMPApplication]

Hi Guys ,

Please adivse what happens if dividend fall into two accounting years.

thanks in advanc

Hi SriramKR

Can you pls specify the dates when you took the pay out of your back account?

That will help the group to explain / understand your situation better.

In my case (I am planning to appear on the 16 th of May), I have a combination of WP, HSMP and Tier 1 (g). I am a contractor and take salary + dividends every month.

My claim period will be between 1st May 2010 until 14th April 2011

I have got similar date issues, but don't think that should be of gr8 concern

Cheers

[goldfish]

The dividend is considered as earned when it is paid. There is no reason to divide it over 12 months or any other number of months. Accounting years are not relevant for UKBA.

A better way to show your earnings and dividend is shown below. A dividend is a one-off payment, not a monthly one, and presenting it this way makes this more clear.

Make sure you are showing the gross, net, and tax paid for both salary and dividends.

MONTH SALARY TOTAL
Apr-10 1000
May-10 1000
...
Jan-11 1000
Feb-11 1000
Mar-11 1000

MONTH DIVIDEND TOTAL
Jan-11 21000
Mar-11 3000

TOTAL 12000 + 24000 = 36000

[sriramkr]

Thanks for your reply MyHSMPApplication .

Thanks to goldfish for your clarification .I am bit releaxed now , Yes I am going to show grooss ,net and tax paid for both Salary and Dividend on accountant letter.
for salary , I will count Gross and for Divided i use only net credited to my account while claiming the points for earnings.