Tier 1 (General) extension - Need you help/suggestion

[info_sucker12]

Hi All,

Need your valuable Input suggestion Regarding by tier 1 extension .

First concern regarding earning ( through my limited company as well through permanent employer )
I am showing my earning from period October 2011 till September 2012 , I have my own limited company and working as independent contractor and getting by invoices cleared using by limited company ( for all this period ).
At the same I have worked as permanent employee for another employer for three and half month period ( from mid-December till march end ).
So my doubt here is can I show my both earning for this period (from mid-December till march end) using my permanent employer salary slip as well as through my limited company .

Second concern regarding my earning proof :
I have setup my limited company since October 2011 and since then its functional and I am having regular transactions through my company , but problem is my CA has not step up salary break-up and didn’t informed me how much salary should I take till may 2012 , so I was transferring amount (£3000 - £4000 )per month from my business account to my personal account , but transaction description doesn’t show is this amount is my salary or dividend etc. … so my concern is while submitting by bank statement my salary/dividend figure which I am taking from my limited company will not match on statement Transaction, will this create any problem ??? if yes how I can cover this up

Third concern – supporting documents to support earning :
Considering my both above situation can you please help me to suggest what documents should I provide to support my earning claim .

[info_sucker12]

Hi All,

is anybody there to Help me here , i need your suggestion on this urgently .

[geriatrix]

1. Yes.
2. These 3K-4K that you have been transferring every month, are they transferred in one transaction or multiple transactions?
3. Read the policy guidance.

[info_sucker12]

Thanks Sushdmehta,

for your Second Question yes most of the time , see all tramsaction detailed below
Transaction which i were making are detailed below :
Date Amout
14/11/2011 £4,000
24/11/2011 £5,000
05/12/2011 £400
05/12/2011 £1,000
07/12/2011 £200
13/12/2011 £2,900
21/12/2011 £300
05/01/2012 £2,200
15/01/2012 £5,000
28/02/2012 £3,000
19/03/2012 £200
16/04/2012 £4,000
24/04/2012 £4,000
21/05/2012 £4,000
21/05/2012 £1,000

[info_sucker12]

HI,

can anybody suggest me how to handle this situation .
your quick help will be highly appreciated .

Please help me , i am stuck here

[Chase53]

Are those transactions transferred to your personal account from ur business account?? If yes, then you can create Dividend Vouchers for those transactions and get them stamped by your accountant.

You need a proper assistance from an accountant on how these transactions can be projected, so I recommend you to consult an accountant if you haven't already.

[O_Relly]

Check with your accountant if your transfer of 3k / 4k transactions can be treated as dividend payouts (from retained profits). If yes, then generate dividend vouchers and get a letter from your accountant as mentioned in policy guidelines detailing your dividend payouts, and you should be fine I would think.

[tier1extension222]

Try to make you case straight forward.
My suggestion will be
1) just show the limited company earning
2) you have not transferred the amounts properly so take the highest payment as dividend of month and ask you accountant to produce dividend vouchers.
The accountant must come under the authorised body.
3)if after calculating if you are not able to get the required amount for claim the points then according you check with the accountant and transfer a huge amount of money in aug or sep as a dividend or bonus.
4) make sure you are paying some tax,ni to hmrc.
5) please get the proof of ni or tax from hmrc or if you have receipt which you would have paid.

Documents
1) dividend vouchers
2) personal bank statement
3) business statement which will support the transfer. (it will be good if the companies name is reflected who ever is paying money)
4) ni contribution
5) tax cOntribution
6) company incorporation letter.
7) offer letter from where you are getting the income.
letter from accountant which shows the amounts you are claiming. The letter should also mention tax credit and net dividend.

In my opinion don't show salary because to save the tax accountant will be showing less figure.
If you are showing then make sure there is some deduction for ni and payee to make case stronger.

If you are going for same day service...I would strongly suggest take a solicitor.

[redbull.lion]

Try to make you case straight forward.
My suggestion will be
1) just show the limited company earning
2) you have not transferred the amounts properly so take the highest payment as dividend of month and ask you accountant to produce dividend vouchers.
The accountant must come under the authorised body.
3)if after calculating if you are not able to get the required amount for claim the points then according you check with the accountant and transfer a huge amount of money in aug or sep as a dividend or bonus.
4) make sure you are paying some tax,ni to hmrc.
5) please get the proof of ni or tax from hmrc or if you have receipt which you would have paid.

Documents
1) dividend vouchers
2) personal bank statement
3) business statement which will support the transfer. (it will be good if the companies name is reflected who ever is paying money)
4) ni contribution
5) tax cOntribution
6) company incorporation letter.
7) offer letter from where you are getting the income.
letter from accountant which shows the amounts you are claiming. The letter should also mention tax credit and net dividend.

If you are peo interview...I would strongly suggest take a solicitor.

If you are self employed and working under a limited company structure and only drawing Dividend (not salary) then you do not need to pay any class 2 NI. what you have to pay is corporation TAX.

but if you are an employee of a company or working as sole trader then you need to pay income tax as well as class 2 NI, or class 4 if your income is hight then 357XX.XX

[tier1extension222]

True...in that case you need to submit some more document like company 1)profit and loss.
2) invoice receipt etc

Not sure what else is required.