IT CONTRACTOR

[JINDER1981]

Hi All
Im looking for some advice. My wife applied for a settlement visa in Punjab Jahlander on DEC 7 2012. I work as a IT contractor and have been since September 2011 . I have been set up a LTD company by my accountant. I am the sole employee as a director. When I applied for my wife’s spouse visa I provide the following documents

1 companies certificate
2 my unaudited accounts which showed my company made turnover of £27800
3 CT600 along with CT630
4 Log with HMRC showing company accounts submitted
5 my contract from my employer has been extended to DEC 2013. I sent a confirmation letter
6 VAT certificate. Forgot to add VAT invoices
7 I have been working on my contract since SEP 15 2011. I have sent all my invoices from that date
8 Personal bank statements and also business account bank statements showing clear money transfers. I have shown link from invoices to business account to personal account
7 My salary for trading year was £6785 and dividends £17300 this is shown on company yearly accounts and also in personal bank statements
8 my self assessment was not due till 31 jan so I have did not provide evidence
My accountant has advised me that I do not need wage slips as I am earning under the NI threshold. And PAYE are made by my LTD company

My solicitor was not very good in advising me what I needed. After looking at the
December 2012
IMMIGRATION DIRECTORATE INSTRUCTIONS
FAMILY MEMBERS UNDER APPENDIX FM OF THE IMMIGRATION RULES
Annex FM Section FM 1.7
FINANCIAL REQUIREMENT
This information was only released DEC 2012 I submitted before information was available. Previous information was very vague in terms of LTD company.
I have only started contracting for last 18 months so I am unaware of how accounts process works
I have not provide
wage slips covering the same period as the Company Tax Return CT600; and
(ii) evidence of payment of PAYE and Class 1 National Insurance contributions where applicable covering the same period as the Company Tax Return CT600, where this evidence is available at the date of application.

(i) evidence of payment of Class 2 National Insurance contributions (for self-employed persons); or,
(ii) current Appointment Reports from Companies House (for Directors),

I am worried my wife’s application may be rejected due to lack of documentation
I have spoken with my accountant who has provide me with
1 A detailed letter explain why I do not have wage slips and also how much my earnings were for last year. Also the fact I will get tax on dividends only
2 HMRC self employment registration which I already had but did not know of
3 I have all VAT invoices which I did not send again my mistake
4 current Appointment Reports from Companies House (for Directors),

I have now gathered all this information in case the ECO requests. Also my p60 and NI contrabutions from HMRC for last 2 years.

I have contacted VFS who advised I can not submit addition documents.

Can anyone advise if the ECO will contact me or reject my application. How long will appeal process take.

[JINDER1981]

PLZ some help

[srik_1983]

First, lets detach the two components of this tax arrangement I call the Ken Livingstone arrangement (perfectly legal but not HMRC friendly!).

A) Company - which submits CT600, can register for VAT which is optional (but mandatory if you exceed 77K turnover) and can register for PAYE which is optional (but mandatory if you are operating a director's or employee payroll). A company collects NICS for employees and submits this to HMRC.

B) Company Director (i.e. you) - who receives a salary (in your case almost equal to personal allowance) and takes the rest as dividends. As a company director, you need to fill out SA100 and submit this to HMRC. You need to receive this income from your Company and need relevant documents to prove this.

Now since you are the dependent whose income is being assessed, you need to submit details of registering with HMRC as Self Employed (UTR), relevant SA returns covering the period, bank statements showing your company pays you the salary you are being assessed against and other relevant documents.

Now, business accounts in my view are mandatory if you are an unincorporated business (sole trader, partnership) as there is only one entity.

However, in the incorporated business, there are two entities (company & director) or three entitites (company, director and employees) or more (shareholders) and more complex the arrangement gets. So company accounts are not required.

Most importantly, if you are working for ONLY ONE EMPLOYER, then make sure you are IR35 compliant. Your tax agent can advice you on this.

This is where my knowledge on taxes and immigration start to diminish as I do not fall in any of the above arrangements.

Hope this helps in some way!

Hi All
Im looking for some advice. My wife applied for a settlement visa in Punjab Jahlander on DEC 7 2012. I work as a IT contractor and have been since September 2011 . I have been set up a LTD company by my accountant. I am the sole employee as a director. When I applied for my wife’s spouse visa I provide the following documents

1 companies certificate
2 my unaudited accounts which showed my company made turnover of £27800
3 CT600 along with CT630
4 Log with HMRC showing company accounts submitted
5 my contract from my employer has been extended to DEC 2013. I sent a confirmation letter
6 VAT certificate. Forgot to add VAT invoices
7 I have been working on my contract since SEP 15 2011. I have sent all my invoices from that date
8 Personal bank statements and also business account bank statements showing clear money transfers. I have shown link from invoices to business account to personal account
7 My salary for trading year was £6785 and dividends £17300 this is shown on company yearly accounts and also in personal bank statements
8 my self assessment was not due till 31 jan so I have did not provide evidence
My accountant has advised me that I do not need wage slips as I am earning under the NI threshold. And PAYE are made by my LTD company

My solicitor was not very good in advising me what I needed. After looking at the
December 2012
IMMIGRATION DIRECTORATE INSTRUCTIONS
FAMILY MEMBERS UNDER APPENDIX FM OF THE IMMIGRATION RULES
Annex FM Section FM 1.7
FINANCIAL REQUIREMENT
This information was only released DEC 2012 I submitted before information was available. Previous information was very vague in terms of LTD company.
I have only started contracting for last 18 months so I am unaware of how accounts process works
I have not provide
wage slips covering the same period as the Company Tax Return CT600; and
(ii) evidence of payment of PAYE and Class 1 National Insurance contributions where applicable covering the same period as the Company Tax Return CT600, where this evidence is available at the date of application.

(i) evidence of payment of Class 2 National Insurance contributions (for self-employed persons); or,
(ii) current Appointment Reports from Companies House (for Directors),

I am worried my wife’s application may be rejected due to lack of documentation
I have spoken with my accountant who has provide me with
1 A detailed letter explain why I do not have wage slips and also how much my earnings were for last year. Also the fact I will get tax on dividends only
2 HMRC self employment registration which I already had but did not know of
3 I have all VAT invoices which I did not send again my mistake
4 current Appointment Reports from Companies House (for Directors),

I have now gathered all this information in case the ECO requests. Also my p60 and NI contrabutions from HMRC for last 2 years.

I have contacted VFS who advised I can not submit addition documents.

Can anyone advise if the ECO will contact me or reject my application. How long will appeal process take.