Tier 1 (General) Ext Limited Company (Dividends Only)

[sachtux]

Hi,
I would be applying for extension of Tier (General) Visa oct 2012.

1. I am a director of a private limited company.
2. I have been withdrawing salary + dividends for the months that i would be claiming points in the visa application.


My query:-
Will it be a problem if i use Only Dividends as an income in Visa application even though i have been withdrawing salary (along with dividends in separate transactions) for those months? For example if i need to show GBP 40,000, i will use dividends drawn for this amount backed by proper documentation like dividend vouchers, bank statements, accountant letter. Although my bank statement will reflect the salary drawn i would NOT like to use it in covering the required amount (GBP 40,000)


Thanks in advance!

[Spatacus]

Hi,
I would be applying for extension of Tier (General) Visa oct 2012.

1. I am a director of a private limited company.
2. I have been withdrawing salary + dividends for the months that i would be claiming points in the visa application.


My query:-
Will it be a problem if i use Only Dividends as an income in Visa application even though i have been withdrawing salary (along with dividends in separate transactions) for those months? For example if i need to show GBP 40,000, i will use dividends drawn for this amount backed by proper documentation like dividend vouchers, bank statements, accountant letter. Although my bank statement will reflect the salary drawn i would NOT like to use it in covering the required amount (GBP 40,000)


Thanks in advance!

Hello sachtux,
I think it does not neccesarily matter, wether you are using salary or dividends or both from your limited company, as long as your dividends covers the salary range for the points being claimed and you have enough evidence to back it up.
However, I have similar questions like yours. I have been withdrawing cash from my company business account every month after expenses, but I am not sure if an accountant can provide an acceptable letter stating that the cash (net profit )withdrawn after expenses are dividends. Am just wondering if someone on this forum have experienced this kind of situation.
Cheers

[tier1_aspirant_del]

Spatacus, have you taken out physical cash from business account or did you transfer it to your bank account?

If you had transferred it to your personal bank account then ask your accountant to prepare dividend vouchers for the given date. (hope that you didn't put any payment reference while doing it).

If you had taken out cash then as per my opinion it won't be possible to justify it as dividends. Seniors can advise more about it.

[laxcaj]

Hi Spatacus,

You might need to speak to your accountant regarding the cash withdrawal. Like advised, its difficult justifying this as dividend because of the tax credit that will be added to it.

Speak to your accountant for clarification please.

Cheers

Laxcaj

[Spatacus]

Spatacus, have you taken out physical cash from business account or did you transfer it to your bank account?

If you had transferred it to your personal bank account then ask your accountant to prepare dividend vouchers for the given date. (hope that you didn't put any payment reference while doing it).

If you had taken out cash then as per my opinion it won't be possible to justify it as dividends. Seniors can advise more about it.

Thanks tier1_aspirant_del,
For your response, I asked my accountant about it, so he advised me to add all the cash I have withdrawn and pay it back into the limited company business account for the accounting year ended 2012. Then transfer the total money into my personal account and reference it as Dividend.
I Hope HO will accept it. Pls I need more advise on this.....senior members and moderators pls advise!!


tier1_aspirant_del,
Many thanks for all your effort and support,
my visa has been approved with me showing dividends as part of my qualifying criteria for points. Your support on this thread is much appreciated. God bless

[Spatacus]

Hi Spatacus,

You might need to speak to your accountant regarding the cash withdrawal. Like advised, its difficult justifying this as dividend because of the tax credit that will be added to it.

Speak to your accountant for clarification please.

Cheers

Laxcaj

Hi Laxca,
Thank you for this positive advise, I actually asked my accountant and he told me that I can sum the total cash I have withdrawn and pay it back into the business account then transfer it to my personal account and reference it as Dividend.
My fear is....hope HO won't question the lump sum cash repayment and the transfer as Dividend?.
Any advise from senior members and moderators on this would be greatly appreciated.

Thank you

[Spatacus]

Hi Spatacus,

You might need to speak to your accountant regarding the cash withdrawal. Like advised, its difficult justifying this as dividend because of the tax credit that will be added to it.

Speak to your accountant for clarification please.

Cheers

Laxcaj

Hi Laxca,
Thank you for this positive advise, I actually asked my accountant and he told me that I can sum the total cash I have withdrawn and pay it back into the business account then transfer it to my personal account and reference it as Dividend.
My fear is....hope HO won't question the lump sum cash repayment and the transfer as Dividend?.
Any advise from senior members and moderators on this would be greatly appreciated.

Thank you

Laxca, sorry I forgot to mention that my accountant advised me to make the already withdrawn cash repayment for the year ended 2011-2012 and make a (referenced-"dividend")payment into my personal account

Thanks Laxcaj,
my visa has been approved with me showing dividends as part of my qualifying criteria for points. Your support on this thread is much appreciated. God bless

[johnjoe]

HI Spatacus,

My visa is extended based on dividends earnings only. I have not shown salary and no questions were raised by the case worker.

Below thread will give background of my case.

http://www.immigrationboards.com/viewto ... highlight=

Although I have not withdrawn cash from my account. I have always transferred in to my personal account.

All the best with your visa application,

[Spatacus]

HI Spatacus,

My visa is extended based on dividends earnings only. I have not shown salary and no questions were raised by the case worker.

Below thread will give background of my case.

http://www.immigrationboards.com/viewto ... highlight=

Although I have not withdrawn cash from my account. I have always transferred in to my personal account.

All the best with your visa application,

Thanks Johnjoe, my visa has been approved with me showing dividends as part of my qualifying criteria for points. Your support on this thread is much appreciated. God bless