Class 2 NIC ?

[golu]

hi,

I am director of my limited company and drawing a minimum salary and the some dividends.

for ILR do I need to provide class 2 NIC contribution letter?

I was under the impression it is required for Self Employed only but came across few posts where users have suggested to include these documents, I dont really have any documents that outlines my NI contribution.

Please advise

[Casa]

If you're a director of a limited company you're not self-employed...you are an employee. Are you paying tax and employee's NI contributions?

[golu]

because I am on minimum salary, I am not I think.

[Casa]

Have you submitted your company accounts to HMRC? Do you earn more than £110 per week, £5,720 pa (unchanged for 2010/2011) - the level of earnings at which employees start to pay Class 1 National Insurance contributions.

[golu]

My salary is 600 pounds a month. I am going to use salary and dividends to claim my earning points.

[Casa]

Then you're earning over the minimum exemption limit for Class 1 contributions. Have you discussed this with an accountant? You have a legal obligation as a company director to submit annual accounts and to comply with HMRC NIC regulations?

[golu]

yes raised it with my accountant, I was permanent until July last year and started my own company only in August, so the taxation will be dealt with soon, I just stumbled across a post that said class 2 NIC for directors of company so raised the question..Many thanks for your replies

[DayDream]

golu

I'm in similar situation as yours. I was permanent till Aug 2011 and started my limited comp as Director.

I was told at that time by my accountant that I already paid enough N.I for the tax year(2011-2012) through my permanent job and need not take any salary for the remaining months (Sep 11- March 12). Hence was paying myself only dividends until March 2012.

Now for the new tax year(Apr 2012 - March 2013), the accountant has adviced me a gross salary of £ 11,200 and I will be paying myself £850 net salary each month.

The concern I have is, the payroll schedule adviced to me is such that I start paying N.I & PAYE Tax only from Dec 2012 till March 2013. The accountant thinks this should be fine as long as one pays enough NI withn the tax year.

But, my ILR is due in Dec 2012 and I wont be able to show any N.I or PAYE paid for Dec 2011- Nov 2012(12 months period for earnings). Is this going to be an issue for my ILR?

PS: My limited company's accounting period ends Aug 2012, so I must have paid CT, VAT etc and might use this as proof during ILR.

Any advice on how to handle this situation?

Thanks...

[DayDream]

Morning All,

Please can someone look in to my previous post and help with your answers?

I'm interested to know if its fine to show proof of earnings (salary + dividend) without paying N.I and PAYE for the period that I will be claiming?

Cheers

[Casa]

You would stand more chance of getting the advice you need if you start your own thread with this. Attempting to answer 2 different queries becomes too confusing and the OP (Golu) gets forgotten.

[golu]

Day dream,

I am in same position as you, I need to pay some tax on my earnings from this year however deadline date is 31 Jan next year, so I am not going to hurry and pay it up now, however it can be done if you need to.

I think UKBA can understand that not all application dates will be aligned with the tax year dates and hence I hope they are not expecting us to have all the taxes paid by the time we apply.

Although I must say I have paid my VAT quarterly and I changed my accounting period for the company to finish in march, which means I have also paid the corporation tax. The only tax outstanding is my personal tax using SATR.

I am not an expert on this topic so its best if someone with more experience and knowledge reply.

[DayDream]

golu

Thanks for the response, most things that you said makes sense.

For my issue of whether UKBA accepts my earnings without NI or PAYE, I'm planning to get a letter from accountant that explains my salary structure and a note explaining the intended tax or NI contributions.

I have already done couple of VAT returns(quarterly) too and also my company accounting period ends August 2012 by which time, I would have paid the CT, personal tax if any & VAT etc.

Im no expert either in this topic but it helps to share our views and as you said experts can correct our views.

Casa - Mate, thanks for your response. I guess I probably got the answer, but will consider a new topic if need be. Cheers
[/quote]

[thiruuk]

Hi All thanks in advance. I'm director of a company but never took salary. Only last year took £2000 as salary. Do I need to pay any class 2 or1 ni? I remember my accountant once said no need. But now I'm preparing myself for the worst case scenarios please any one give advice on this

[Casa]

You've posted this in a 4 year old thread and much has changed since 2012! You're likely to get more response if you start a new thread.

[thiruuk]

You've posted this in a 4 year old thread and much has changed since 2012! You're likely to get more response if you start a new thread.

Hi thank you for your prompt reply. I felt starting a new thread may fall under forum rules? Thats why

[Casa]

You've posted this in a 4 year old thread and much has changed since 2012! You're likely to get more response if you start a new thread.

Hi thank you for your prompt reply. I felt starting a new thread may fall under forum rules? Thats why

No problem in starting one if you don't already have your own thread running.