ILR through limited company sole director/dividend vouchers

[Hassan Butt]

I find NNJ10's clarifications about company accounts ,invoices and dividend vouchers very informative .Through this forum I want to request him to advise me how can I show net earnings through limited company .What dividents vouchers should show and how earnings can be accumulated ?Can you send me a template/draft of a DV?
I,ll be thankful

[skilachi]

Are you applying as a Director of ur Ltd Co.? what docs have you got presently?

[Hassan Butt]

Thanks skilachi
Yes I am sole director and have all tax returns ,company incorporation letter
letters from company house,invoices,bank statements etc.
My question is
How I can show previous earnings for the period?What is the importance of dividend vouchers and what role they play in providing evidence in past earnings and award of points?Can you send a template and a template of accountants letter ?

[nnj10]

Happy to help.
For previous earnings, you will more likely provide payslip and dividend voucher as "Employee" of your LTD co.

If you are stating any consecutive 12 month period for previous earning, Just provide all the salary slips and dividend vouchers for that period.
If you need any template, look out for it on http://www.contractorcalculator.co.uk/

Your dividend voucher should state, both Gross and Net dividend along with tax credit.
PM me if you need any specific information.

[LondonBoy1]

Nnj can u please let me know about the documents required for someone who is registered as self employed and pays his tax via accountant.

thanks

[nnj10]

Londonboy,
I am not too sure about past earnings evidence for "Registered self employed" , but looking at SET (O) guide, I imagine you will need to provide bank statement showing earnings + your Class 2 NI contributions (Not sure whether you get billed by HMRC and then pay) + Accountant letter confirming your earnings you claimed.
You can also include any invoices/fee note etc raised for your business to corroborate your earnings.

[OneWorld5]

Hi Hasan,

I have got my ILR successfully yesterday as a Company Director.

I have submitted following documents:

- 12 months Personal bank Statement

- Dividend Vouchers from last 4 years. That's when i started working as an IT contractor with my own

limited company. Dividend vouchers were on companies letter head / stamped . Also counter signed by

the accountant.

- Business bank statements of last 12 months

- My companies contract copy with the customer (in my case it's a reputed company where i do the

contract work) which clearly mentioned my daily rate , length of contract. Case worker was happy to

see these contracts.

- My last 3 years company tax returns / accounts - this was crucial. She did ask for it & gone

through in good detail.

- VAT Returns to HMRC for last 4 Quarters

- Last 12 months Invoices & the remittance advices ( though she didn't ask them) - but good to

carry

- Accountsnts letter confirming my salary , dividends & share holding. ( i take a minimum salary

which is under tax threshold , so had to submit pay slips & P60 for last 3 years)

- Other general stuff like Degree cert / age proof / marriage cert / cohabitation proof / absences sheet / Life in UK test cert etc

Good Luck.

[sunil.suneel]

- Dividend Vouchers from last 4 years. That's when i started working as an IT contractor with my own limited company. Dividend vouchers were on companies letter head / stamped . Also counter signed by the accountant.

- My last 3 years company tax returns / accounts - this was crucial. She did ask for it & gone through in good detail.

All fine with your docs OneWorld5

But dont think div vouchers for 4 years is needed, previous one year should be more than enough ...
Also "3 years of company accounts" cannot digest ? what for, thinking why did the case worker go in details thru all 3 years of account .... I think 1 years should be more than enough ....

[OneWorld5]

Yes , she just asked if i have any previous accounts / tax return documents. I gave her all 3 years.

[nnj10]

As Sunil said, it should be really not required, they should only be looking at evidence of previous 12 months.
My personal experience dealing with UKBA Case Worker is, they sometimes do ask for very irrelevant documents and if you do carry them they will go in detail to scrutinise, which is really not required in the first case.

[muhami01]

My accountant says dividends should be declared but it is not necessary to transfer the amount in personal account as you are sole director and pay tax on dividends.
Kindly explain further and in this case advise what will be 2 sources of evidence as past earnings?[/u][/u]---------------------------------------------------------------------------------------------------------------


I think until you don’t take out dividend from business bank account you cannot call it’s a dividend because until then its business income not your personal income. (Dividend is personal income from busniness.)

For evidence of dividend you need to show you personal bank statement (showing salary and dividend coming in.)
Second evidence can be dividend voucher (along with Tax voucher and minutes of meeting)
Other evidences as previously mentioned could be management accounts/yearly accounts, accountant letter as mentioned in the form.

[Hassock]

Hello OneWorld5:

Thanks for sharing your experience.
I am particularly interested in providing evidence as a contractor (working through limited liability company) for previous earnings.
What do the dividend vouchers cover?
What is the the content of payslip?
What details should the letter from accountant confirming previous earnings specify?
I am normally paid my full hourly rate through my business account and my income statements show total company income, net salary, net profit, net salary and tax retained.
Please let me know the exact documents required to substantiate previous earnings.

Hassock.