Limited company -> effect on Tier1 G extension

[mm11]

I am on Tier1 general, and my extension is due in January 2013 (one year left). I am in a contract job and I’m now soon to switch from umbrella company to limited company. For this I have formed my limited company. I am new to the limited company concept in the context of Tier1 visa, so can you please point out whether any of the below mentioned facts can cause problem (or potential problem) in relation to my tier1 extension:

- I am the director of the company (is that fine?). I’ll be the sole employee of the company as well.

- And I am the only share holder.

- Number of shares is one, and cost of each share is one pound.

Many thanks for your kind advice.

[AccountantMatthew]

Looks fine to me! Having issued share capital of one share to one director who is the only individual within the company who carries out all of the company work & management is a common set up.

Just ensure you keep all of your paperwork in order!

[sshah20]

Hi AccountantMatthew,

I have one question regarding corporate tax and tax on dividend. I am sole director of a limited company and I draw minimum salary every month on which NI and tax is minimum. if company made profit I know that their will be corporate tax which is 20% but if company declare the whole profit as dividend will I pay income tax on it which is 10%?

I spoke today to one Accountant and he said if the dividend is less then £50000 then you will not be liable for income tax.
I am on tier 1 general and I have to show earning upto £26K.

Can you please comment on this?