Queries on being self employed for Tier 1 Extension

[abiodua]

Hi Everyone

Please i need some input and help as i will be submitting Tier 1 extension for myself and my family. My questions are

1.) For self employed, is it better to use a Business bank account or can i use my personal current account to run the business as i still have some months before renewal in which i can decide to open a business bank account.


2.) Myself and my spouse both have money in our acount, can we use both acount or use the account of main applicant only? and if we are using both account do we have to show 12months accounts statement for both accounts?

3.) Is it compulsory i include my new born baby delivered in the UK when making the application

I'll be glad to get response to my post . Thanks


Regards,

[AccountantMatthew]

Can only help with Q1 abiodua - I don't want to stray away from my field of knowledge.

I'm assuming that you are a sole trader rather than the director of a limited company as you say you are self employed. On that basis it doesn't matter if you use a personal account for business and private transactions. A separate business account makes life easier for tracking your business (and for any bookkeeper/accountant) but that's a commercial matter. If your local bank finds out, they may try and get you to open a business account - but again that's a contractual matter between you and your bank.

If on the other hand you are the owner/director of a limited company then you should definitely open a separate business bank account as you are legally two separate persons.

[abiodua]

Thanks AccountantMatthew for helping out with question 1. I'll just stick to the current account.

Any help with regards to the other questions will be greatly appreciated.



Thanks.

[abiodua]

77 views 1 reply Please i need answers

Regards

[rajani1981]

Hi Everyone

Please i need some input and help as i will be submitting Tier 1 extension for myself and my family. My questions are

1.) For self employed, is it better to use a Business bank account or can i use my personal current account to run the business as i still have some months before renewal in which i can decide to open a business bank account.


2.) Myself and my spouse both have money in our acount, can we use both acount or use the account of main applicant only? and if we are using both account do we have to show 12months accounts statement for both accounts?

3.) Is it compulsory i include my new born baby delivered in the UK when making the application

I'll be glad to get response to my post . Thanks


Regards,

If you are a sole trader, I suppose you should have the following:

1. personal bank account (or business account) statements where the payments have been deposited by the clients
2. letter from accountant conforming the payment receipts and relevant details
3. Net profit and loss stmnt
4. invoices of the the companies attested by Accountant
5. Balance Sheet prepared by Accountant and signed by you
6. Management accounts signed by you (prepared by Accountant but may not be compulsory).
7. letter from hmrc confirming UTR
8. Proof of class 2 NI payments.
9. Contact details of the clients (of course shown on invoices! in most cases).
These are only for self-employed sole trader. Other types of self-employment like contracting, ltd.company etc may require some more additional documents. Refer to 7 requirements of the para 142 of previous earnings section.
Please correct me if I am wrong.