Gross Salary should be same each month?

[Visa_Novice]

Hi,

I am worknig through my own Limited company. I withdraw same Net salary each month and some dividend. I pay NI each month. My Gross salary and Dividend are not same across different months.

I am due for tier-1 extention in May this year.
For the visa extention purpose, is it necessary that my Gross Salary remains same each month? Are there any rules around it?


Kindly help.

Thanks

[jamiluddin]

it can be different in different months

[Visa_Novice]

[quote="jamiluddin"]it can be different in different months[/quote]

What can be different?
Is it Gross, Net, Dividend or all three can be different in each month?
Can there be a big variation in each month. Like in one month I am getting 5000 gross and in another one I am getting just 600? can it raise any eyebrows?

Thanks

[AccountantMatthew]

You are in control of your salary if you are the director of your own company so you can basically pay yourself what you want. Obviously it's different when you employ others as it'll be in their contract of employment but in effect you can keep varying your own contract.

Therefore the gross salary can be different every month. As NI and PAYE Income Tax vary with salary levels, they will too be different so your net salary will be different as a consequence too.

Interim dividends are proposed by the directors and are at their discretion - they too can differ and be at different times of the year. Just remember that there should be sufficient profits within the business to distribute them.

So in short, yes everything can differ.

[Visa_Novice]

[quote="AccountantMatthew"]You are in control of your salary if you are the director of your own company so you can basically pay yourself what you want. Obviously it's different when you employ others as it'll be in their contract of employment but in effect you can keep varying your own contract.

Therefore the gross salary can be different every month. As NI and PAYE Income Tax vary with salary levels, they will too be different so your net salary will be different as a consequence too.

Interim dividends are proposed by the directors and are at their discretion - they too can differ and be at different times of the year. Just remember that there should be sufficient profits within the business to distribute them.

So in short, yes everything can differ.[/quote]

I can vary my contract only if I have one in place, right? I donot have any employement contract between me and my limited company. Does it make any difference to your above answer?

Thanks

[AccountantMatthew]

It's probably best not to get too far off the point and start straying into employment law and what contstitutes a contract of employment etc. That's probably another question for someone else another time.

For your situation in wanting to vary your salary and dividends however you are in a position to be able to do so. Many have done so before - it is far from a unique situation.

For dividends do ensure that the dividend can be declared (sufficient profits within the company) and, of course, ensure you have the cash to pay a salary and meet the PAYE/NI due.

[mulderpf]

There are no rules saying that your salary (gross or net) has to be the same each month whether you are self-employed or working for a company.