ILR Application (Contractor or Permanent Job)!!

[majid0403]

Hi There,

I am currently on a Tier 1 General Visa and I will be eligible for ILR in December 2014.

My situation is as follows:

Permanent Employment from Jan 2010 to June 2013
IT Contractor (Self Employed - Own Ltd Company) from June 2013 to Dec 2013
Permanent Employment from Jan 2014 to Dec 2014 (have option to go permanent or continue contracting)

The above will cover my 5 years on Tier 1 for ILR eligibility.

My questions are as follows:

1) Will I just be able to submit my payslips and bank statements from my last 12 months of permanent employment (Jan 2014 to Dec 2014) and dont have to show my previous earnings as a contractor?
2) Is it compulsory for me to present any P60's at all at the time of application?

Will it simplify my ILR application if I take up permanent employment for the last 12 months before my ILR application? Or it doesnt matter if I am contracting or permanent employment as long as I can prove my earning via salary or dividends?

Your help will be greatly appreciated.

[rajesh9pl]

Or it doesnt matter if I am contracting or permanent employment as long as I can prove my earning via salary or dividends?

Its does not matter as long you earn required points in Previous Earning section.

As a contractor, you to need to include more documents e.g. Business Account Statements, Letter from accountant, Dividend Voucers, Invoices and so on. Permanent means - a straight foward application for caseworker.

1) Last 12 months
2) Its not mandatory. However, its good to have. Even if you do not have all 4 (you can't have 5th P60 when you are in your 5th year, then you can request HMRC to send your Tax history.

Hope this helps.

[majid0403]

THanks Rajesh.

My accuntant is suggesting adding my wife as a secretarty on my company if I were to take up permanent employment before the beginning of next financial year.

Will this be an issue while I apply for ILR? Where I show the homeoffice that the salary I have drawn is through dividends while paying my secretarty my wife (Salary + Dividends).

Will I fall under tax evasion, as my account is saying that it is perfectly legal as you can ask your wife to carry out all the admin work. Like submitting time sheets, expenses filing recipts etc.

Any advise from the contractors who have applied and were in a similar situation will be ideal.

[rajesh9pl]

THanks Rajesh.

My accuntant is suggesting adding my wife as a secretarty on my company if I were to take up permanent employment before the beginning of next financial year.

Will this be an issue while I apply for ILR? Where I show the homeoffice that the salary I have drawn is through dividends while paying my secretarty my wife (Salary + Dividends).

Will I fall under tax evasion, as my account is saying that it is perfectly legal as you can ask your wife to carry out all the admin work. Like submitting time sheets, expenses filing recipts etc.

Any advise from the contractors who have applied and were in a similar situation will be ideal.

Dividend is issued based on your company shares. If you are 100% shareholder then you can take all the profit as Dividend. Its not mandatory to appoint wife as your CS. However, its appropriate to appoint a CS as you will be on a different job too. You can pay her min. salary and dividend based on her share. No tax evasion as long you are paying VAT, Corporation Tax, NI and Income Tax etc.

[majid0403]

Thanks again Rajesh.

One final question, if I add my wife to the company as a secretary does she need to stay in UK all the time? She has been living with me in UK since 2010 but has gone to India on Maternity just now and wont be back until Nov/Dec this year?

I can still ask her to do the basic admin work from there?

Is it still legal?

[rajesh9pl]

Please ask these questions to your LTD company accountant. My knowledge is limited about LTD company and contracting.