Tier 1 extension - dividends + permanent job salary

[coolwind]

Hi All,

I would appreciate all your suggestions. I will be applying for a Tier 1 extension next year.
Here are a few points about my situation:
1. I am in a permanent job and have my limited company as well
2. I will be showing salary from my permanent job and some dividends from
my limited company as evidence of earnings
3. Since I am in a permanent job I have no profits earned in my limited
company for the earning period and I will be claiming dividends from the
profits earned during the previous year
4. I would like to know if it is alright to show dividends from profits before
the earning period for Tier 1 extension or the dividends must be from
profits during the earning period.

I personally think it doesn't matter as long as the dividends are claimed within the earning period.
Please help me with your suggestions based on your experiences.

[aliq09]

Hi All,

I would appreciate all your suggestions. I will be applying for a Tier 1 extension next year.
Here are a few points about my situation:
1. I am in a permanent job and have my limited company as well
2. I will be showing salary from my permanent job and some dividends from
my limited company as evidence of earnings
3. Since I am in a permanent job I have no profits earned in my limited
company for the earning period and I will be claiming dividends from the
profits earned during the previous year
4. I would like to know if it is alright to show dividends from profits before
the earning period for Tier 1 extension or the dividends must be from
profits during the earning period.

I personally think it doesn't matter as long as the dividends are claimed within the earning period.
Please help me with your suggestions based on your experiences.

Hi ,

here are my best suggestions

Since I am in a permanent job I have no profits earned in my limited
company for the earning period and I will be claiming dividends from the
profits earned during the previous year


NO , earning should be from the current period . You can't take dividend from the earning in past like 1 0r 2 years . It has to be within the current period of your application . Kindly consult your accountant further in this regard . Further it will be the NET DIVIDEND which will be considered in your case ( as you are taking only dividend and no salary from the limited company )


I would like to know if it is alright to show dividends from profits before
the earning period for Tier 1 extension or the dividends must be from
profits during the earning period.


IMO, as i mentioned above income ( salary , dividend ) has to come from the current period not the past

experts , kindly advice further

Thanks

[karg_g]

Hi

As a company you can declare the dividends when and you like. Although if you had n't any income previously it might sound doddgy. But the rules are in your favour

However if you are self employed:
94.
If an applicant is self-employed and has chosen to retain the profits within the business, his/her earnings are limited to the share of the business’s net profits to which he/she is entitled. The appropriate proportion of the net profit of the business (that is, after tax and outgoings) can therefore be counted as the gross salary of the applicant.
We will only consider profits made during the appropriate 12-month earnings period for which the applicant is claiming.

[coolwind]

@aliq09 Is it that the UKBA consider dividends only when they are declared from profits during the earning period? Or I cannot take any dividends from past year's profits?

@karg_g I won't be self employed. Also, my accountant's reference letter will show the summary of all my profits and when they were earned.
Since the profits are from the years before the earning period, would that be a problem with UKBA?

[bubin123]

@aliq09 is incorrect on both aspect.
It will be gross dividend to be considered as gross income and the payment date will be considered for the earning period.
Net profits used for sole traders who are not separate legal entity from themselves like ltd company directors.

[coolwind]

Thank you all for your input. I guess the period in which the profit was earned is relevant only for sole traders who apply as self employed people.