HMRC Tax Query

[CD_April2013ILR]

Hello,

I am on Tier1 General Visa. I am a director of my own limited company contracting from May 2010.
I used to take my monthly payment as Salary + Dividend. I have taken less salary so did not pay NI and PAYE from May 2010 till Jan 2012.

Started taking more salary from Feb 2012 till now and paid NI and PAYE accordingly.

My accountant gave me P60's for previous years but all shows very less tax. Is it going to be a problem for my ILR as the tax I paid was very less. I paid Corporation Tax, VAT correctly.

Please let me know would there be any issue.

Thank you.

[db83]

In terms of tax, it shouldnt be a problem with taking low salary. Thats is the regular norm when you run your limited company mopst of the times.

Bear in mind, you would have still paid Corp tax thats a chunk of the dividend you would have earned.

As long as you have the points for income which is your gross salary and dividend - it shouldnt really matter...how you take your money from your company, i.e. as a big salary or a big dividend.

[CD_April2013ILR]

Thank you db83.