Tier 1G extension - director of limited company

[canon123]

While calculating the earning points for tier1, do we need to consider gross dividends or net dividends

[bestprint]

gross dividend

[ambal]

It may depend on CW, I had my application processed last week and could see from approval letter that CW had considered [b]Net Dividend only[/b] for earnings ( although have seen many opinions that Gross Dividend is considered )...

So my suggestion would be to consider only net dividend for earnings calculation if thats possible, to play very safe.

[Sushil-ACCA]

It may depend on CW, I had my application processed last week and could see from approval letter that CW had considered Net Dividend only for earnings ( although have seen many opinions that Gross Dividend is considered )...

So my suggestion would be to consider only net dividend for earnings calculation if thats possible, to play very safe.

there is now way play safe from untrained ho worker

Gross dividend is final answer

[canon123]

thanks

[geriatrix]

I am contractor working through my LTD Company as a director and 100% share holer. I only take salary and does not take any dividends. Do I need to still register myself as self employed??

[AccountantMatthew]

No. That's for sole traders (and partners) only. Even though in your situation you are self employed in the eyes of the UKBA, you aren't as far as HMRC (or pretty much everybody else) is concerned.

[canon123]

Hi AccountantMatthew,

Thanks for your reply. My question is do i need to register as self employed? I got ltd company since Sept2010. if i call the HMRC what should i say my start date of self employment is?

[AccountantMatthew]

If you are the director/owner of a company then in the eyes of HMRC you aren't self employed.

[canon123]

thanks, but the Part 6A rules mention that i need to register as self employed right?? if so how to do that??

[AccountantMatthew]

No that won't apply to you.

In your situation you are self employed as far as the UKBA is concerned but not as far as HMRC is concerned. Therefore you won't register with HMRC as you would if you are a sole trader. By all means call them if you want a second opinion but you will be told the same thing!

It does mean that there is a perceived gap in what UKBA want and what you can provide but you are in a far from unique situation. For letting UKBA know this (if indeed whether it's worth bothering or if it is so self explanatory even the most inexperienced CW understands!) it's best to throw this open to others who have applied so they can share their experience.