Tier1 (General) Extension -Self Employed via Limited Company

[amit0277]

Hi Guys,

I would be applying for visa extension under Tier 1(General) category. I am self employed and have my own limited company setup. I would like your help to get more information on what documents needs to be submitted for previous income. As per the new guidelines, if you are self employed, we need to give many more document. I do understand most of the things but need more clarification on the following...

1) Invoice explanations or payment summaries from the applicant’s accountant. These are summaries or explanations created by an applicant’s accountant. These explanations should include a breakdown of the gross salary, tax deductions and dividend payments made to the applicant. The total gross salary and dividend payments should be the same as the applicant’s earnings. The payment summary should enable us to check that these correspond with the net payments into the applicant’s personal bank account.

Q: What is invoice explanation or payment summaries? Is it the invoice I raise to the client?


2) 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. If the applicant’s National Insurance is paid by quarterly bill: The applicant must provide the bill from the quarter immediately before the application. This must be an original document and not a copy.

Q: Do We really need to submit NIC documents? My accountant has these documents but are these mandatory documents?


Please do share your experience, If anyone has been self employed and have extended their visa recently.

Many Thanks
Amit

[amit0277]

Hi Guys,

I would be applying for visa extension under Tier 1(General) category. I am self employed and have my own limited company setup. I would like your help to get more information on what documents needs to be submitted for previous income. As per the new guidelines, if you are self employed, we need to give many more document. I do understand most of the things but need more clarification on the following...

1) Invoice explanations or payment summaries from the applicant’s accountant. These are summaries or explanations created by an applicant’s accountant. These explanations should include a breakdown of the gross salary, tax deductions and dividend payments made to the applicant. The total gross salary and dividend payments should be the same as the applicant’s earnings. The payment summary should enable us to check that these correspond with the net payments into the applicant’s personal bank account.

Q: What is invoice explanation or payment summaries? Is it the invoice I raise to the client?


2) 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. If the applicant’s National Insurance is paid by quarterly bill: The applicant must provide the bill from the quarter immediately before the application. This must be an original document and not a copy.

Q: Do We really need to submit NIC documents? My accountant has these documents but are these mandatory documents?


Please do share your experience, If anyone has been self employed and have extended their visa recently.

Many Thanks
Amit

Invoice summary is a document which list down information of all invoices raised. It will contain date, invoice number, client name, amount, date credited.

Guidance Document Point 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.

As per my understanding... If you are director of a limited company and is 1005 shareholder, you are effectively employeed. But home office consider such individual as self-employed. However in such model of operation the company is registered to Pay NIC class 1 insurance. Hence if a person is self employed but is not part of a limited company needs to show Class 2 NIC.

Senior member please verify if I am correct.

[HSK Accountancy Services]

Hi Guys,

I would be applying for visa extension under Tier 1(General) category. I am self employed and have my own limited company setup. I would like your help to get more information on what documents needs to be submitted for previous income. As per the new guidelines, if you are self employed, we need to give many more document. I do understand most of the things but need more clarification on the following...

1) Invoice explanations or payment summaries from the applicant’s accountant. These are summaries or explanations created by an applicant’s accountant. These explanations should include a breakdown of the gross salary, tax deductions and dividend payments made to the applicant. The total gross salary and dividend payments should be the same as the applicant’s earnings. The payment summary should enable us to check that these correspond with the net payments into the applicant’s personal bank account.

Q: What is invoice explanation or payment summaries? Is it the invoice I raise to the client?


2) 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. If the applicant’s National Insurance is paid by quarterly bill: The applicant must provide the bill from the quarter immediately before the application. This must be an original document and not a copy.

Q: Do We really need to submit NIC documents? My accountant has these documents but are these mandatory documents?


Please do share your experience, If anyone has been self employed and have extended their visa recently.

Many Thanks
Amit

Invoice summary is a document which list down information of all invoices raised. It will contain date, invoice number, client name, amount, date credited.

Guidance Document Point 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.

As per my understanding... If you are director of a limited company and is 1005 shareholder, you are effectively employeed. But home office consider such individual as self-employed. However in such model of operation the company is registered to Pay NIC class 1 insurance. Hence if a person is self employed but is not part of a limited company needs to show Class 2 NIC.

Senior member please verify if I am correct.

Only company pay Class 1 NIC through PAYE calculation . Normally any adjustment is made from the final payment.

Directors do not pay anything else unless they have another self-employment business.

[amit0277]

Hi Guys,

I would be applying for visa extension under Tier 1(General) category. I am self employed and have my own limited company setup. I would like your help to get more information on what documents needs to be submitted for previous income. As per the new guidelines, if you are self employed, we need to give many more document. I do understand most of the things but need more clarification on the following...

1) Invoice explanations or payment summaries from the applicant’s accountant. These are summaries or explanations created by an applicant’s accountant. These explanations should include a breakdown of the gross salary, tax deductions and dividend payments made to the applicant. The total gross salary and dividend payments should be the same as the applicant’s earnings. The payment summary should enable us to check that these correspond with the net payments into the applicant’s personal bank account.

Q: What is invoice explanation or payment summaries? Is it the invoice I raise to the client?


2) 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. If the applicant’s National Insurance is paid by quarterly bill: The applicant must provide the bill from the quarter immediately before the application. This must be an original document and not a copy.

Q: Do We really need to submit NIC documents? My accountant has these documents but are these mandatory documents?


Please do share your experience, If anyone has been self employed and have extended their visa recently.

Many Thanks
Amit

Invoice summary is a document which list down information of all invoices raised. It will contain date, invoice number, client name, amount, date credited.

Guidance Document Point 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.

As per my understanding... If you are director of a limited company and is 1005 shareholder, you are effectively employeed. But home office consider such individual as self-employed. However in such model of operation the company is registered to Pay NIC class 1 insurance. Hence if a person is self employed but is not part of a limited company needs to show Class 2 NIC.

Senior member please verify if I am correct.

Only company pay Class 1 NIC through PAYE calculation . Normally any adjustment is made from the final payment.

Directors do not pay anything else unless they have another self-employment business.

Many thanks for the response. Does this mean that an individual is considered as Employeed if he/she is a Director and 100% shareholder of a limited company?

[ilrdec11]

I am a director of limited company and 100% shareholder of that company. just wondering to tick "employed" or "selfemployed"

Can anyone please answer to this question raised in this thread.

"Does this mean that an individual is considered as Employeed if he/she is a Director and 100% shareholder of a limited company" ?

[ankitv]

"Does this mean that an individual is considered as Employeed if he/she is a Director and 100% shareholder of a limited company" ?

Yes.

[AccountantMatthew]

Per http://www.ukba.homeoffice.gov.uk/polic ... roduction/ Interpretation section.

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.

[rajani1981]

Hi Guys,

I would be applying for visa extension under Tier 1(General) category. I am self employed and have my own limited company setup. I would like your help to get more information on what documents needs to be submitted for previous income. As per the new guidelines, if you are self employed, we need to give many more document. I do understand most of the things but need more clarification on the following...

1) Invoice explanations or payment summaries from the applicant’s accountant. These are summaries or explanations created by an applicant’s accountant. These explanations should include a breakdown of the gross salary, tax deductions and dividend payments made to the applicant. The total gross salary and dividend payments should be the same as the applicant’s earnings. The payment summary should enable us to check that these correspond with the net payments into the applicant’s personal bank account.

Q: What is invoice explanation or payment summaries? Is it the invoice I raise to the client?


2) 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. If the applicant’s National Insurance is paid by quarterly bill: The applicant must provide the bill from the quarter immediately before the application. This must be an original document and not a copy.

Q: Do We really need to submit NIC documents? My accountant has these documents but are these mandatory documents?


Please do share your experience, If anyone has been self employed and have extended their visa recently.

Many Thanks
Amit

Invoice summary is a document which list down information of all invoices raised. It will contain date, invoice number, client name, amount, date credited.

Guidance Document Point 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.

As per my understanding... If you are director of a limited company and is 1005 shareholder, you are effectively employeed. But home office consider such individual as self-employed. However in such model of operation the company is registered to Pay NIC class 1 insurance. Hence if a person is self employed but is not part of a limited company needs to show Class 2 NIC.

Senior member please verify if I am correct.

I think invoice summary is a different one. Because as per the description given, the invoice summary should contain dividend paymets, tax details etc. I am sure these items will not be a part of the invoice generated to the clients.
Correct me if I am wrong.