Tier1 Extension -Applied as Employeed but considered Self-Em

[smilealways365]

Tier1 Extension -Applied as Employed but considered Self-Employed.

UKBA - has requested for additional documents.
Applicants claiming points for self-employed earnings made in the UK must provide documents to show that they are registered as self - Employed and were registered as self - Employed for the period when this money was earned.

My Question: As i am not registered as Self - Employed - I am IT contractor and employed by my own limited company. Draw Salary and Dividend.

How to go for it?
What are the documents needs to be sent now.

Any advice will be very great!

I need to send these documents within 5 days to them.

[geriatrix]

You are self-employed ... it is only that you derive your personal income through salary (and perhaps dividends) from your limited company (employer) that you are a controlling shareholder of (owner).

Under Part 6A of these Rules, "Self-Employed" means an applicant is registered as self-employed with HM Revenue & Customs, or is employed by a company of which the applicant is a controlling shareholder.

See also 114(vi)-(x) and Self-employed earnings within a business or company structure (under 120).

[xpscapable]

Hmm not sure how it is now, back when I was contracting I'm on the same boat with you. I declare myself as employed rather than self-employed.

If I understand correct, self-employment is rather different than owning your limited company. You are employed, the fact that you own the company that you're employed with is a different matter.

I submitted:

1) salary slip (my accountant send me once a month)
2) my dividend
3) personal my bank account to cross reference #1 and #2
4) my contracts with recruiters
5) invoices to client
6) company bank account to cross reference #5
7) accountant information confirming salary & dividend to me

And I got my Tier 1 on the basis of above. There were loads of documentation submitted, being employed full time is much easier to proof earning.

[smilealways365]

You are self-employed ... it is only that you derive your personal income through salary (and perhaps dividends) from your limited company (employer) that you are a controlling shareholder of (owner).

Under Part 6A of these Rules, "Self-Employed" means an applicant is registered as self-employed with HM Revenue & Customs, or is employed by a company of which the applicant is a controlling shareholder.

See also 114(vi)-(x) and Self-employed earnings within a business or company structure (under 120).

As i have not registered as self - employed with HMRC what next?
what are document i need send them now
Can you please deatil me - that will be very help ful

[xpscapable]

Well the link that sushdmehta provided shows what to do. According to the item that he quoted, you're self employed too.

I was just saying that back then I didn't consider myself as self-employed, just employed. Things may have changed now.

[amit0277]

Tier1 Extension -Applied as Employed but considered Self-Employed.

UKBA - has requested for additional documents.
Applicants claiming points for self-employed earnings made in the UK must provide documents to show that they are registered as self - Employed and were registered as self - Employed for the period when this money was earned.

My Question: As i am not registered as Self - Employed - I am IT contractor and employed by my own limited company. Draw Salary and Dividend.

How to go for it?
What are the documents needs to be sent now.

Any advice will be very great!

I need to send these documents within 5 days to them.

What document did you submit along with your application?

Here is the extract from guidance note...


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.

[smilealways365]

1) salary slips
2) Personnel bank statement
3) Dividend vouchers
4) Company bank statements
5) Account letter - Clear stating the Salary and Dividends
6) Letter from account showing clear 50% share holder details for both the director.
7) Assignment agreement copy.
all the above has been submitted.

[amit0277]

1) salary slips
2) Personnel bank statement
3) Dividend vouchers
4) Company bank statements
5) Account letter - Clear stating the Salary and Dividends
6) Letter from account showing clear 50% share holder details for both the director.
7) Assignment agreement copy.
all the above has been submitted.

Not sure what other documents you need to submit. I would suggest that you see a solicitor.

[smilealways365]

Offi cial tax document produced by
the tax authority or employer, showing
earnings on which tax has been paid or will
be paid in a tax year.

• a document produced by a tax authority
that shows details of declarable taxable
income on which tax has been paid or will
be paid in a tax year (for example a tax
refund letter or tax demand);
• a document produced by an employer as
an offi cial return to a tax authority, showing
details of earnings on which tax has been
paid in a tax year (for example a P60 in the
United Kingdom); or
• a document produced by a person,
business, or company as an offi cial return
to a tax authority, showing details of
earnings on which tax has been paid or
will be paid in a tax year. The document
must have been approved, registered,
or stamped by the tax authority (this is
particularly relevant to some overseas tax
systems, for example SARAL in India).

Can I submit any one of these above or all of them

[Sushil-ACCA]

Tier1 Extension -Applied as Employed but considered Self-Employed.

UKBA - has requested for additional documents.
Applicants claiming points for self-employed earnings made in the UK must provide documents to show that they are registered as self - Employed and were registered as self - Employed for the period when this money was earned.

My Question: As i am not registered as Self - Employed - I am IT contractor and employed by my own limited company. Draw Salary and Dividend.

How to go for it?
What are the documents needs to be sent now.

Any advice will be very great!

I need to send these documents within 5 days to them.

U need to provide following documents

1 Company hmrc registration -UTR NO.
2. PAYE registration of company if u r drawing above paye limits
3. Personal UTR no.
4. Businesss bank a/c
5. Persoanl bank a/c
6. dividend vouchers
7. Payalips
8. Invoices -with name and adress of clients
9. Any other business registration-patente etc


SUPPORTING documents
1 Business insurance
2 Rental agreement

As far as govt authority documenta give will boost yr case

[amit0277]

Offi cial tax document produced by
the tax authority or employer, showing
earnings on which tax has been paid or will
be paid in a tax year.

• a document produced by a tax authority
that shows details of declarable taxable
income on which tax has been paid or will
be paid in a tax year (for example a tax
refund letter or tax demand);
• a document produced by an employer as
an offi cial return to a tax authority, showing
details of earnings on which tax has been
paid in a tax year (for example a P60 in the
United Kingdom); or
• a document produced by a person,
business, or company as an offi cial return
to a tax authority, showing details of
earnings on which tax has been paid or
will be paid in a tax year. The document
must have been approved, registered,
or stamped by the tax authority (this is
particularly relevant to some overseas tax
systems, for example SARAL in India).

Can I submit any one of these above or all of them

Hi,

I am also a company director and 100% shareholder for a company. I have the same question whether I am employed or self employed. So I called up HMRC this morning to check the same. As per HMRC, I am a salaried employee of the company. I am being paid a Salary and dividend. While doing Self Assessment I fill the form details which are related to a Employee. Hence in their system I am registered as Employed.

Regards
Amit

[AccountantMatthew]

As far as HMRC are concerned Amit you are an employee and not self employed. Legally the company and you (as an individual) are separate persons so the company you own still has to employ you as an individual.

For those who are sole traders, the business and the person are legally one and the same so for tax purposes you are self employed.

So you are right that, as far as legal form and tax are concerned, you are an employee. Indeed ask any of us bean counters and tax practitioners we would say the same thing.


Unfortunately UKBA have decided otherwise for their purposes so those who operate through a 100% owned & managed company are therefore deemed to be self employed.

As to why they do this I'd love to know myself! I can only guess that as far as the substance of the set up goes you control your own destiny so therefore that equates to being self employed.

However it is their game I suppose so it's therefore their rules!

[amit0277]

As far as HMRC are concerned Amit you are an employee and not self employed. Legally the company and you (as an individual) are separate persons so the company you own still has to employ you as an individual.

For those who are sole traders, the business and the person are legally one and the same so for tax purposes you are self employed.

So you are right that, as far as legal form and tax are concerned, you are an employee. Indeed ask any of us bean counters and tax practitioners we would say the same thing.


Unfortunately UKBA have decided otherwise for their purposes so those who operate through a 100% owned & managed company are therefore deemed to be self employed.

As to why they do this I'd love to know myself! I can only guess that as far as the substance of the set up goes you control your own destiny so therefore that equates to being self employed.

However it is their game I suppose so it's therefore their rules!

I called up UKBA this afternoon to verify the employment status. The lady from UKBA told me that if you are registered as Employed with HMRC, then select Employed on the Application form. In short UKBA should consider the employment status of a person based on HMRC criteria.

[bond_007]

Hi,
I am alos working as IT contractor, have my own limited company
Have plan to apply for Tier 1 extension next year.
Even I dont what it means by registered as self employeeed.
Please let me know if you get any info on the same

Tier1 Extension -Applied as Employed but considered Self-Employed.

UKBA - has requested for additional documents.
Applicants claiming points for self-employed earnings made in the UK must provide documents to show that they are registered as self - Employed and were registered as self - Employed for the period when this money was earned.

My Question: As i am not registered as Self - Employed - I am IT contractor and employed by my own limited company. Draw Salary and Dividend.

How to go for it?
What are the documents needs to be sent now.

Any advice will be very great!

I need to send these documents within 5 days to them.

[yomdee]

I also have a similar experience at the Birmingham PEO this week. I only provided my payslip and Personal bank Statement. She requested for Accountant letter, biz bank statement, invoice and certificate of incorporation. I argued that I am applying as an of my own co
Pany employee of my company and that all the necesary return have been made with company house and HRMC. She insisted I must provide some of those things which come accross with the same requirement for self-employment. I have decided to use post instead of PEO but the. Am having to consider the documentation as self-employment. Reading Alwaysmiles' post now xonfirms to me it appears the rule has changed of recent. How do we approach this?

[smilealways365]

@ yomdee : Well when you got in touch with PEO - When they asked to provide the details - did she asked for NI Class 2 document ?

I suggest - to submit all the documents
1. Bussiness - Bank Pappers
2. Certificate of Business
3. P60 is important
4. Is what i am not sure of NI - CLASS 2 Payment which we dont do it.
I am not sure how to deal with
As of now I have submitted all the above document.
for NI - Sent an letter provided from Accountant that we dont pay NI Class 2, insteed we pay NIC Class 1

From your statement => You shld have said that I am an Employee of the xxxx limited company. Insteed of Own company - that made confusion.

[smilealways365]

115. If the applicant is claiming earnings
from self employment in the UK, he/she must
provide evidence that he/she was paying
Class 2 National Insurance contributions
during the period/s of self-employment used
to claim points.

116. Read this as well

http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf

As an contractor we are not registered as self - employed and we will not be paying NI Class 2 -

Not sure how to handle this?

[bobby80gh]

115. If the applicant is claiming earnings
from self employment in the UK, he/she must
provide evidence that he/she was paying
Class 2 National Insurance contributions
during the period/s of self-employment used
to claim points.

116. Read this as well

http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf

As an contractor we are not registered as self - employed and we will not be paying NI Class 2 -

Not sure how to handle this?

I think the problem is you ticked that you are self employed and that is the reason why they ask you for further documents. you have to let your accountant give you a letter explaining that you are actually an employee of the business although you are a director and print out documents from companies house proving your director status. I am an Accountant and I have my own limited company and I applied as an employee of my business. The only documents I supplied were dividend vouchers and personal bank statements.

[smilealways365]

@bobby80gh : I have not check the box as Self - Employed. I have scanned copy of my application.

I am not sure - what went wrong and they considered me as Self-Employeed ?

I have to wait and watch now - I have sent an letter from Account - which clearly mentions that - I am an Employeed not an Self - Employeed.

Regards,

[antony]

@bobby80gh : I have not check the box as Self - Employed. I have scanned copy of my application.

I am not sure - what went wrong and they considered me as Self-Employeed ?

I have to wait and watch now - I have sent an letter from Account - which clearly mentions that - I am an Employeed not an Self - Employeed.

Regards,

@smilealways365:
Do you have any further update on your situation with UKBA? please advice.

Did you checked with them before submitting the documents in person? If you have done so, you could have noted the date and time of the call with the person whom you have spoken and use that as a proof (as the UKBA wont provide these info in writing in form of email).

I think the best way to deal with this is to have the following documents Only as i am planning to prepare the documentation like the below:
-> Last 12 months [personal bank statement + pay slips (corraborating evidence)]
-> Dividend vouchers + personal bank statement(corraborating evidence)
-> Letter from Accountant mentioning the salary and Dividend drawn for the period
-> Previous P60 documents (keep whatever you have with you)
-> co-habitation document (if your dependent is living with you -> Need to have a council tax bill / Any other document showing your dependent Wife name which should be min 2 years old)

Also, please refer to this post in the forum:
http://immigrationboards.com/viewtopic.php?t=89702

Gurus, please advice if my approach is correct OR Clarify what documents to be used?

Many thanks
Anto

[smilealways365]

@ antony

Still waiting for the response from UKBA.

Hope to hear - Positive response from them.

Regards,

[vinayrn]

hi all, just thought of sharing my recent experience with UKBA for my Tier 1 visa extension & giving you some ideas...
In my case, i had booked a PEO birmingham appointment... I am a contractor & have my own limited company...
After collecting all documents based on inputs i got from successful friends & agents, i went to Birmingham office... after taking the ticket at the counter, i was directed to another counter... the lady in that counter took my passport n visa n started counting the points directly... she did give points for study n age, but cought me on earning... even though i had entered as EMPLOYED in th box, she was asking me more documents... i had provided payslips, bank statements, accountant letter, divident vouchers, etc... but she started asking me to explain the details in payslip... later she asked me my tax returns... since i hadnt got it i gave the accountant letter explaining everything in detail... she then cought me on salary dates saying i am claiming outside specified duration... how much ever i tried to explain her, she was not ready to listen at all... she then returned all my documents n told me to apply by post... i could not argue as its HOME OFFICE n watever we do is recorded... i was shattered as i had got this date after so much effort n my wedding was due in 1 month time... applying by post would surely take 6-8 weeks...
Then i decided to try in CROYDON office at any cost n finally managed to get appointment just 3 days before my VISA expiry date through a solicitor... the procedure between the 2 PEO is totally different... after submitting all documents, my solicitor was told to collect all documents next day & we didnt get to know the outcome immediately... today i got the news that the VISA is approved n very happy...
So, i recommend everyone of u to book CROYDON if its indirect or limited company... other PEO's are not that educated abt indirect applications... if u r direct employee then i think it is OK...
the doucments i submitted are:
1) Application Form
2) Photos
3) Salary Slips
4) Employer Salary Statement (in the form of table)
5) Bank statements - Personal & Business
6) Dividend Vouchers
7) Accountant Letter
8) Accountant P/L statement
9) Contract letter from agency
10) Company formation letter n HMRC letters
11) Master degree certificate
Think these are the one they look at & all of them should correlate...
NOTE: Even i had a confusion whether i was employed or self employed... But after thorough research i got to know we fall under EMPLOYED... this is because we are registered with HMRC as limited liability company n not as sole trader... this can be added as a line in accountant letter...
Hope this info helps u people n all the best...

[smilealways365]

Hi Vinay,

Thank for such a beautiful explaination

Friends => Awesome Material
NOTE: Even i had a confusion whether i was employed or self employed... But after thorough research i got to know we fall under EMPLOYED... this is because we are registered with HMRC as limited liability company n not as sole trader... this can be added as a line in accountant letter...

[arunb4uin]

hi vinayrn,

I have few questions on your experience @Solihull PEO. Please can you explain more about your below statements

-> she started asking me to explain the details in payslip.
What exact details is she looking in payslip?
-> she then cought me on salary dates saying i am claiming outside specified duration.
Please can you explain whether you claimed outside the duration mentioned.

Your comments will help me since I am going to apply in DEC.

[vinayrn]

hi...
I would strongly recommend you not to apply at any other PEO if you are tight wrt time n if u have ur own limited company...
well, regarding your queries, pls see the reply below:
1) She checked my payslip n started asking what is holiday pay, why it is paid along with salary, etc n told she cant consider first month holiday pay for points... even though i said OK, she was not convinced...
2) Since i am a contractor, there is 1 month delay in my payment... i.e. if i work in jan, i get paid in march first week... so in appl form i filled jan-dec but my payment was from mar-feb... so she said she cant consider last 2 months payslips as its outside the range... even though i explained it, she was not ready to listen...
So, if urs is the same case, i would recommend u to enter salary dates rather than work dates...