Tier 1 Ext. approved -Limited company director (Croydon PEO)

[devss08]

Hello members,

First of all thankyou very much for the information shared by previous applicants and forum members that helped me a lot in preparing my Tier 1 Extension application and I applied today in Croydon and my extension has been approved.

So, I Just want to share the information what I have experienced during the PEO session.

I applied as employed where I have work through limited company structure and am the Director and 100% shareholder and drawing Salary and Dividends.

Documents for earnings submitted:

1. Payslips: Provided by my accountant showing salary,PAYE/NI deductions and net salary and dividends to be withdrawn from the company account.
2. Personal bank statements.
3. Dividend vouchers for each payment.
4. Acountant letter: specifying the relationship between me,Limited company and the accountant, membership with ICAEW/ACCA, brief description on the earnings route from Invoices to personal bank statements and finally Tabular column on earnings specifying Gross/Net salary and dividends with payment dates.

I sumbitted these for the consideration but Caseworker also asked Invoices and business bank statements for the period to cross check the payments with personal bank statements. Also asked me to provide nature of services provided by me as limited company director in a separate sheet.

The caseworker also asked me for Company incorporation certicate but I haven't provided it, but that doesn't made any harm to my application.

I have provided these as well and finally everything went smoothly and Extension has been approved.

Additional info: Caseworker did ask me to provide my degree certificate for the qualificaton points. So, Pls. also take your educational certificates with you for the qualification points claimed.

If possible, Take a set of photocopies of all supporting eveidence to save a bit of time.

Cheers,

Devss08.

[ilrtier1]

Hi devss08,
Have you paid your monthly salary on the respective dates of your payslips? If payslip dates and payment dates of salary are not matching what idea you suggest?Would it be a problem?
Thanks

[bpt]

Hi

I would like some help regarding dividend vouchers...
1)I would kindly like to request the format you used for your Dividend voucher please.
2)I am unsure what amount of the money earned through a Limited company can be withdrawn as Dividend, and does profit have to be calculated at that stage?
3) I have a job where I am employed and one where I have a Ltd company and am the sole share holder and director. All of my expenses are from my personal account so am not quite sure how to show profit for the Ltd company prior to withdrawal of the dividend.
4) Also how is the difference between the Net and Gross Dividend calculated? and is this difference tax credit?

Thank you in anticipation.

[devss08]

Hi ilrtier1,

In my case, 3 payslip dates differ with payment dates in personal account and the difference is 4 days. I have explained this in a separate letter under supporting documents explanation (for section J9 in the extension application form)and attached with the form.

So, I think this should be alright if the difference in dates are shorter and better explain it in a explanation letter when you are applying.You will be fine.


For bpt's query,

Hire an accountant who is registered in one of the association specified
in UKBA guidance and he will do the rest for you.

Cheers,

Devss08

[bpt]

Hi

Thank you for your reply,
Yes I do have an accountant from whom I am taking assistance, however in his opinion the Dividend voucher does not show gross amount, it only shows net + tax credit...
Did you use an accountant you would recommend? Thanks

[devss08]

Hi bpt,

Easy way. Dividend voucher is limited company's document which should be in your letterhead and you are going to sign it. So, Just prepare in the same format your accountnat provided in a word doc. and add a new row on Gross dividend( which is addition of Net dividend +tax credit).

[bpt]

Ok, and how do I calculate tax credit?

[devss08]

Hi bpt,

1. Request your accountant to provide gross dividend along with Net dividend and tax credits by specifying him clearly that this is required as per UKBA's guidance.

2. If he doesn't agree to specify Gross dividend, then ask him to provide
general dividend voucher that meets statutory requirements such as specifying Net dividend and tax credits in it.

Then you generate the same format and add the Gross dividend in it.

For your info:

Total income - Director gross salary- Expenses
-VAT deductions=Company profit before tax.

Company gross profit x 10% tax = Gross dividend
Gross dividend x 10%(tax credit)= Net dividend

[bpt]

Thanks a lot much much clearer now,
Still wish to know if you have an accountant you would recommend who is familiar with requirements according to Tier 1 renewals ...

[ilrtier1]

Thanks devss08,
My accountant made me payslips altogether for 12 months in march, and I paid the total sum of salary for one year in April. All my salary slips show payment prepared dates of each month. I didnt know this at that time. Can you suggest me an idea pl. as these dates are not matching?

Do they ask for invoices? In my invoice I charged the agent for say 40 hours per week. But my payslip says one hour per month and rate equal to monthly salary.
ie, 1 hour x rate(monthly salary) = amount (monthly salary)

Would this be problem? Please advice

Thanks

[Ukay]

Hello members,

If possible, Take a set of photocopies of all supporting eveidence to save a bit of time.

Cheers,

Devss08.

Hi

Please can you tell me what date did they stamp on your extension?

Eg My current visa started 01st Oct 2008 - End 01st October 2011

I am planning to go in person on the 28th September 2011

So will my new visa start from 28th Sept or will it be 01st Oct?
What did they stamp on yours?

What will the end date be is it 28th Sept 2013 or 01st Oct 2013?


Please can you help...

[tier1visaissues]

Hi Devss08,

Congratulations for your extension!

I have two queries.

Firstly, for your total income did you consider:

a. Gross salary + Gross dividend
or
b. Gross salary + Net Dividend

Second question:

Does you pay slip state both gross and net dividend or just net dividend?

lastly, Also if you could let me know if your about the invoices. Did you take invoices with you, did the invoices amount match with the payments in your business bank statements? Did you also show the company P/L statement?

I will be very grateful if you could reply me asap as its a bit urgent!!

Many thanks in advance

Thanks

[devss08]

@ilrtier1

My accountant made me payslips altogether for 12 months in march, and I paid the total sum of salary for one year in April. All my salary slips show payment prepared dates of each month. I didnt know this at that time. Can you suggest me an idea pl. as these dates are not matching?

Sorry, this is bit complicated for me to suggest and create a new post ,so any senior members would help you.

@Ukay

My initial visa expiry date is 1september 2011 and I have applied on 17th august2011. Tier1 -extension was granted till 1st september 2013.

@Tier1visaissues

Firstly, for your total income did you consider:

a. Gross salary + Gross dividend
or
b. Gross salary + Net Dividend

1. Earnings claimed and awarded for: Gross salary+Gross dividends.

Does you pay slip state both gross and net dividend or just net dividend?
My payslips has shown only Net dividends but not Gross dividends.

lastly, Also if you could let me know if your about the invoices. Did you take invoices with you, did the invoices amount match with the payments in your business bank statements? Did you also show the company P/L statement? -- Yes,I took the invoices and business ank statements with me as additional proof but not provided with primary supporting evidence.Caseworker asked for those documents and then I have provided it. Yes, caseworker is checking that the invoice amount is matching with business bank statement credit entries. I have not provided P/L statement and the caseworker didn't ask me the evidence as well.

[tier1visaissues]

Hi devss08,

Thank you very much for the reply.

One last request: could you send me a copy of the ur dividend voucher, you can remove your personal details, I just need the template.

Also can you tell me if you signed it in the end and was it on your company letter head.

Please send me the template in complete confidence, I will be really grateful.

Many thanks in adv..

Thanks

[devss08]

Hi Tier1visaissues,
Find below the template I used for the voucher which my Accountant has provided me .will be useful to you and other members.

I couldn't align it properly here. But these are the contents.Prepare and print this in a good quality A4 paper and make sure you sign the voucher.

XXXXX LIMITED
Registration Number: yyyyyyy

TAX VOUCHER


Company Registered Address:
(Specify company registered address)

DIVIDEND FOR PAYABLE TO SHAREHOLDERS REGISTERED ON (Specify payment date
date, Month & year)

Shareholder Name: Your name
Share Class: A-Ordinary Shares
Holding: 1
Net Dividend paid(£): XXXX.XX
Tax Credit(£): XXX.XX
Gross Dividend(£): XXXX.XX

Date: (Exact payment date, Month and Year)

…………………………
(Your Name)
DIRECTOR

This voucher should be kept. It will be accepted by HM Revenue & Customs as evidence of a tax credit.

[ilrtier1]

Hi devss08,
Could you pl. tell me, about the way you calculated the tax on dividend.
If you have done this, was it like this given below,

say £1000 Net dividend
Tax is 10% = £100
So Gross dividend is £1100.

My accountant gave me a template which shows
eg. Net dividend £1000
Tax £0
Gross dividend £1000
I think this is not right.

And the tax we mention here is the personal tax, right? and we pay this amount only when we do the personal assessment right?
And do the UKBA check whether we have paid all taxes or not? Can I know my deails with hmrc are correct or not, in case UKBA has to check?

Please advice.

Thanks




[quote="devss08"]Hi Tier1visaissues,
Find below the template I used for the voucher which my Accountant has provided me .will be useful to you and other members.

I couldn't align it properly here. But these are the contents.Prepare and print this in a good quality A4 paper and make sure you sign the voucher.

[b] XXXXX LIMITED
Registration Number: yyyyyyy

TAX VOUCHER [/b]


Company Registered Address:
(Specify company registered address)

DIVIDEND FOR PAYABLE TO SHAREHOLDERS REGISTERED ON (Specify payment date
date, Month & year)

Shareholder Name: Your name
Share Class: A-Ordinary Shares
Holding: 1
Net Dividend paid(£): XXXX.XX
Tax Credit(£): XXX.XX
Gross Dividend(£): XXXX.XX

Date: (Exact payment date, Month and Year)

…………………………
(Your Name)
DIRECTOR

[b]This voucher should be kept. It will be accepted by HM Revenue & Customs as evidence of a tax credit.
[/b][/quote]

[rocky2323]

[quote="devss08"]Hello members,

First of all thankyou very much for the information shared by previous applicants and forum members that helped me a lot in preparing my Tier 1 Extension application and I applied today in Croydon and my extension has been approved.

So, I Just want to share the information what I have experienced during the PEO session.

I applied as employed where I have work through limited company structure and am the Director and 100% shareholder and drawing Salary and Dividends.

Documents for earnings submitted:

1. Payslips: Provided by my accountant showing salary,PAYE/NI deductions and net salary and dividends to be withdrawn from the company account.
2. Personal bank statements.
3. Dividend vouchers for each payment.
4. Acountant letter: specifying the relationship between me,Limited company and the accountant, membership with ICAEW/ACCA, brief description on the earnings route from Invoices to personal bank statements and finally Tabular column on earnings specifying Gross/Net salary and dividends with payment dates.

I sumbitted these for the consideration but Caseworker also asked Invoices and business bank statements for the period to cross check the payments with personal bank statements. Also asked me to provide nature of services provided by me as limited company director in a separate sheet.

The caseworker also asked me for Company incorporation certicate but I haven't provided it, but that doesn't made any harm to my application.

I have provided these as well and finally everything went smoothly and Extension has been approved.

Additional info: Caseworker did ask me to provide my degree certificate for the qualificaton points. So, Pls. also take your educational certificates with you for the qualification points claimed.

If possible, Take a set of photocopies of all supporting eveidence to save a bit of time.

Cheers,



Hello Members,

I am stuck in some similar situation.I applied on 20January,2011 and still havnt heard anything.I got my biometrics done around 5 feb ,2011.

I had PSW valid untill march 2011 .I run a business as a limited company and work as a Director.Just after 4 weeks of biometrics i recieved a query to submit my National Insurance bill.As i was paying by direct debit i didnt had one handy and the time given was just 3 working days.So i submitted the very first original letter recieved from HMRC giving me ideas about my National insurance contribution i will be paying every month.

After this all i thught to call up HMRC and request for my quaterly bill just in case.They asked me in wriiting as i had to tell them as i need it for homeoffice evidence.I dont know what happen to them they send me a refund cheque of 98 pounds what i paid them so far from April 2010 till March 2011.I called them up with regards to it and they said THE DIRECTOR OF LIMITED COMPANY IS NOT ENTILLED TO PAY NI CONTRIBUTION.I spoke to my accountant and he said there is nothing as such.Later on after 3weeks i recieved a letter from HMRC which was stating that i paid my NI contribution for 2009 ,2010 but i didnt pay anything for 2011.I am willing to pay that tax but dont know how.

I am still waiting for my reply after 7 long months.I really dont know what will be the outcome of this. My questions to senior members in this are as follows.

Any idea what will be the outcome of this application ?Will i get my HSMP or not ?
Am i suppose to pay any NI contribution ,if yes than how should i go about?

Please advise me the best of your knowledge.This is really a frustrating time as you can all understand waiting for 7 months is not a joke.

Please help Me !!!!!

[Jedi001]

Hello members,

First of all thankyou very much for the information shared by previous applicants and forum members that helped me a lot in preparing my Tier 1 Extension application and I applied today in Croydon and my extension has been approved.

So, I Just want to share the information what I have experienced during the PEO session.

I applied as employed where I have work through limited company structure and am the Director and 100% shareholder and drawing Salary and Dividends.

Documents for earnings submitted:

1. Payslips: Provided by my accountant showing salary,PAYE/NI deductions and net salary and dividends to be withdrawn from the company account.
2. Personal bank statements.
3. Dividend vouchers for each payment.
4. Acountant letter: specifying the relationship between me,Limited company and the accountant, membership with ICAEW/ACCA, brief description on the earnings route from Invoices to personal bank statements and finally Tabular column on earnings specifying Gross/Net salary and dividends with payment dates.

I sumbitted these for the consideration but Caseworker also asked Invoices and business bank statements for the period to cross check the payments with personal bank statements. Also asked me to provide nature of services provided by me as limited company director in a separate sheet.

The caseworker also asked me for Company incorporation certicate but I haven't provided it, but that doesn't made any harm to my application.

I have provided these as well and finally everything went smoothly and Extension has been approved.

Additional info: Caseworker did ask me to provide my degree certificate for the qualificaton points. So, Pls. also take your educational certificates with you for the qualification points claimed.

If possible, Take a set of photocopies of all supporting eveidence to save a bit of time.

Cheers,

Devss08.

Hello,

Have a quick question as I am in kind of similar situation:

I am one of the directors of a limited company.We are a new startup (11 months) and we have decided to pay our dividends at the end of financial year (if anything is left after paying the investors ). Now thats in March 2012 however I will be applying for my Tier 1 extension in Feb 2012.

Questions:
1. Can I just show my monthly salary and explain that dividend is not yet paid? Or do I still have to show all the company accounts and evidence of my relationship with the company?
2. Am i correct in saying that i will tick EMPLOYED and NOT "Self Employed"?

Please advise.

Regards

[Jedi001]

Anyone...senior members please advise..

Regards