Net profit vs tax rebate

[venture]

I am director of my own company and withdrawing dividends from it.

My accountant advised me tax saving tips such as purchase of car, showing fixed expenses etc. Perhaps I wonder these factors will affect my net profit figure.

Currently I am showing very basic items as fixed expenses. If my above query is right then I will not exercise any tax saving tips. Please anyone advise on showing net profit for tier 1 g extension.

Thanks

[Lucapooka]

Why can't your accountant answer this? Your income will be viewed by the UKBA as revenue less expenses, before tax. If you spend your revenue on expenses (inc fixed assets) the sum before tax will be lowered but may be lowered to the extent that is does not meet the amount necessary for the UKBA.

A lady on another forum was hoping to be sponsored for a settlement visa by her UK husband. As a taxi driver, his revenue of 20K was well over the 18K income threshold but he was declaring 10K in expenses, thus paying tax on only 10K. The visa was refused and she is totally baffled by this. She failed to understand why the UKBA are taking his income as 10K rather than 20K.

[bubin123]

expenses will be never included into earnings.
You need to achieve required income band by sum of gross salary and gross dividend...

[venture]

Many thanks for reply, perhaps I am bit not sure what exactly to do?

Should I exercise tax rebate options by showing legitimate expenses as UKBA is concern about gross earnings / dividends only? Taxpayer has a right to optimise his tax liability.

However, it has been declined by UKBA earlier due to low earnings which has bearing on tax paid (as advised by Lucapooka) Is this due to applicant could not able to show legitimate expenses?

At safer side, I will not show any expenses for the purpose of tax savings.

Thanks