Tire1 (General) extension, limited company - PEO experience

[vijaytire1]

Hi all, thanks for this board members and my extension was Successfully on 27th Feb at Croydon PEO.
I would like to share my PEO experience for my Tire 1 (General) extension as Director/Employee of Limited Company, which was not much smooth. As my appointment was on 11 AM, but I was the last one to leave at 5:30 PM.

My situation: In last 12 months, 2 months I have worked in India and next 10 months working in UK as contractor, through my own limited company and 100% share holder.

10:30 AM made credit card payment
11:10 AM Application screening and payment verification.
12:05 AM Biometrics done.
01:15 PM Case worker called me, for the application submition.

Documents Attached, along with the application:
1. passport
2. point based calculator printout
3. India salary payslips & bank statements.
4. UK Payslips, dividend vouchers & personal bank statements. (paid through limited company)
5. Account reference letter, showing salary and dividends. (Both gross & net)
6. Limited company management accounts, that shows the net profits. (Provided by my accountant)
7. Bank statement for Fund maintenance.

Documents in hand:
1. Business current account statement
2. Certificate for Incopration & share holding certificate.
3. Business Invoice and payment summary.
4. My Contract, with my existing client that shows my Day rate and all the details.
5. HMRC letter, about my PAYE due.(self assessment enrollment).

02:40 PM Case worker called me to check if I every paid any tax:
I: till now I just paid VAT for my Business, but not any other tax on personal earnings, as my salary is below £7000. (plus dividends of £15k+ gross, for which I'll pay cooperation tax in future)
CW: do you have any letter from HMRC confirming this?
I: not exactly, but I have a letter from HMRC regarding my PAYE (I give it to her)
CW: (She asks me to wait)
03:25 PM When I check about the status, they said someone might be working on my application and they will call you if they need any thing, till then you have to wait. Actually, I felt that guy was bit stupid as he responded without actually checking the status of my application.
04:35 PM After more then 3 hours of wait, a new case worker calls me and here is the conversation:
CW: I seen your application unattended so picked it up to work on it, it seems previous junior CW was unable to work on your case. Let me try to process your application, as you have been waiting for a long time.
I: (????) Thanks for picking up my case. (I hate that stupid CW, who left my application unattended and waisted my time.)
CW: What do you do? how much you earn? how do you earn? what does your Limited company for? Any tax you paid? etc...
I: (Answered)
CW: I see money going and coming in your statement, where it is going to & where it is coming from? And from where are you getting paid.
I: (justified all my transactions and also showed my business statement as proof)
CW: what is your companies earnings source?
I: (Showed my client contract with day rate)

05:30 PM After a lot of discussion, I was able to convince him that I'm a genuine candidate, with all the evidence with me. Finally, he took the photo copy of my payslips, business statements, client contract, almost all the documents & then he approve my extension.

So please take as much supporting documents possible, including HMRC, VAT, PAYE, accountant letters, etc.

All the best.
Vijay

[pranav]

Thanks for sharing this. I am in similar situation. However my client contract does not have my company's name, it is in my name.

Will it be a problem?

Thanks.

[vijaytire1]

In my case, he didn't bother to see the names on the contract. He has just seen the day rate and took the photo copy of entire contract. Mainly I had to justify him about the source of earnings.

I Guess it shouldn't be a problem, but if possible carry few/all invoices raised by your company to the client + client remittance certificate paid to the company's business account based on the invoice raised.

Also, make a quick list of the invoices and client payments, (using word/excel table) some thing like:
Invoice explanation
Invoice Date, Invoice Ref, Client Contract, Analysis, Gross Amount

Payment summaries
Payment Date, Received From, Analysis, Amount

So with this you can prove him all the business turnover at a glance (if possible authorize it with your Accountant).

Note: some case works are not sure how a limited company works, so you should be able to explain him/her and win their confidence.

Good Luck,
vijay

[scorpio_besal]

You should be alright Parnav.

[donalds]

Well, in case of document verification, it totally depends on the person sitting another side of the table. Any ways it was nice raeding your experiences.
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