Tier 1 extn query

[King_tier1]

Hi senior members please advise me this..
My current tier 1 leave expires on April 2nd. My ltd company formed in Nov 2011. In my first contract I earned around £14,000 as min salary and dividends. My contract finished in June 2012 and I started full time job in july 2012 where I earned 11,000 until Jan 2013. Alongside I worked in another contract for ltd company from aug 2012 to jan 2013 and earned £16,000.
I did not submitted company accounts or paid CT yet. As per letter received from HMRC it says due by 31st October 2013. Is that ok to sit for extension without paying CT ? If that's ok what other documents I can submit to show I that I am going to pay in October 2013 ? Kindly advise.

[King_tier1]

Senior members : Kindly reply for my post...

[tier1_aspirant_del]

First you can show this HMRC letter that the CT is due by Oct 2013. And you would have your business bank statement to show that enough money is present in it.

You must have submitted VAT returns quarterly. If yes then you can show that as well. Apart from it you can also show your PAYE contribution (as employee of your limited company).

I think you should be fine. CT is not a must requirement and for newly formed company everybody understands that CT is not paid so early.

[King_tier1]

First you can show this HMRC letter that the CT is due by Oct 2013. And you would have your business bank statement to show that enough money is present in it.

You must have submitted VAT returns quarterly. If yes then you can show that as well. Apart from it you can also show your PAYE contribution (as employee of your limited company).

I think you should be fine. CT is not a must requirement and for newly formed company everybody understands that CT is not paid so early.

Thank you so much for helpful reply. Only confusion left is about PAYE contribution bit, Yes in my first contract I took around £600 as salary. I only have payslips for this. Am I missing something here ?

[adityaisukapalli]

If you took Salary + Dividends... its simple & straight forward. You just need Payslips, Dividend Vouchers, Accountant Letter. Don't show company documents.... make it simple

If you did not take Dividends.. and claiming company profits.. then you need more documentation.

Corporation tax is not an issue.

[King_tier1]

I am going for PEO Tier 1 Extn next week. I am director of limited company where I took salary & dividends. Also I received salary after tax & NI from full-time employment. I did not paid any NI for salary took from Ltd company. Is this going to be a problem? Please advise. Is there a minimum salary amount where you do not pay NI !

[tier1_applicant]

I am going for PEO Tier 1 Extn next week. I am director of limited company where I took salary & dividends. Also I received salary after tax & NI from full-time employment. I did not paid any NI for salary took from Ltd company. Is this going to be a problem? Please advise. Is there a minimum salary amount where you do not pay NI !

This could be a problem as you may already have used personal allowance in your employment and subject to NI/tax payment on your second salary. You need to check with your accountant.

[karg_g]

Mr King,

It looks as if u owe more tax to HRMC. U need to have different tax code to get this sorted. Since ur still employed through limited company ur accountant can sort this out for u. Also if u read the tier 1 guidance it does not mention about corporation tax that is either due or overdue.

IMO since ur "employed" by two companies ur gross income will remain the same and hence ur points for earnings. If u show urself has self employed then ur company may not made the required profits and might be trouble.

Don't confuse the CW with too many docs/information. If u give required documents then UKBA will have tough time to disprove ur application, which means the have to issue ur visa.

Just follow the guidance and prepare necessary docs . Keep necessary back files but use it if only necessary.

[karg_g]

Mr King,

It looks as if u owe more tax to HRMC. U need to have different tax code to get this sorted. Since ur still employed through limited company ur accountant can sort this out for u. Also if u read the tier 1 guidance it does not mention about corporation tax that is either due or overdue.

IMO since ur "employed" by two companies ur gross income will remain the same and hence ur points for earnings. If u show urself has self employed then ur company may not made the required profits and might be trouble.

Don't confuse the CW with too many docs/information. If u give required documents then UKBA will have tough time to disprove ur application, which means the have to issue ur visa.

Just follow the guidance and prepare necessary docs . Keep necessary back files but use it if only necessary.

[King_tier1]

Can I use 05/03/2012 to 04/03/2013 as my 12 months earnings period ? This doubt just popped in mind after reading some posts. Please reply as my PEO is on next Monday

[King_tier1]

Can I use 05/03/2012 to 04/03/2013 as my 12 months earnings period ? This doubt just popped in mind after reading some posts. Please reply as my PEO is on next Monday

Please someone reply to me

[karg_g]

Mr King,

Yes it looks ok to me, but kindly read this point to ensure you still qualify for your visa extension.

94.
If an applicant is self-employed and has chosen to retain the profits within the business, his/her earnings are limited to the share of the business’s net profits to which he/she is entitled. The appropriate proportion of the net profit of the business (that is, after tax and outgoings) can therefore be counted as the gross salary of the applicant.
We will only consider profits made during the appropriate 12-month earnings period for which the applicant is claiming.

[King_tier1]

Mr King,

Yes it looks ok to me, but kindly read this point to ensure you still qualify for your visa extension.

94.
If an applicant is self-employed and has chosen to retain the profits within the business, his/her earnings are limited to the share of the business’s net profits to which he/she is entitled. The appropriate proportion of the net profit of the business (that is, after tax and outgoings) can therefore be counted as the gross salary of the applicant.
We will only consider profits made during the appropriate 12-month earnings period for which the applicant is claiming.

Thanks for reply, Ok I am not changing my earning period cuz its too late to do that. All documents printed. Now even if they dont consider march 2012 earning, I get my qualifying points. Is that ok?

[karg_g]

Mr King,

I think the answer is yes.

[King_tier1]

I am going for PEO tomorrow in Solihull. So please reply to me and ease my stress. After arranging all documents, I have come across some serious confusion..
a. Do UKBA consider 12 month earnings period like we calculate 365 days using date calculator.
for eg: 02/01/2012 to 01/01/2013 or plain Jan 2012 to Dec 2012
b. I used Gross Salary + Gross Dividend to reach my earning requirement. Is this supported by UKBA guidelines?

[King_tier1]

I am going for PEO tomorrow in Solihull. So please reply to me and ease my stress. After arranging all documents, I have come across some serious confusion..
a. Do UKBA consider 12 month earnings period like we calculate 365 days using date calculator.
for eg: 02/01/2012 to 01/01/2013 or plain Jan 2012 to Dec 2012
b. I used Gross Salary + Gross Dividend to reach my earning requirement. Is this supported by UKBA guidelines?

Kindly someone please advise.

[Yash001]

A. Plain months jan to dec
B. it's gross salary plus gross dividend ...many have got their visa bases on same

Don't worry you are alright on these

[King_tier1]

A. Plain months jan to dec
B. it's gross salary plus gross dividend ...many have got their visa bases on same

Don't worry you are alright on these

Thanks Yash

I am going as Employed (Salary) + Limited company director ( Salary + Dividends)

Following documents are submitting.
1. Completed Tier 1 form
2. Two photographs
3. Letter from Accountant confirming Gross & Net earnings, company shares and table showing dividends, salariesetc. Also an unaudited account for earning period.
4. Personal bank statements showing maintenance fund & Earnings credited.
5. Business bank statements covering 12 months.
6. Dividend vouchers signed myself as director
7. Payslips in Sage(other employer & Ltd comp)
7. Client Invoices
8. Client Contracts

Am I missing anything or added any which could rise confusion for CW. Seniors kindly advise.

[Yash001]

Your documents are perfectly alright... Many have got their visa based on these documents... If you have profit and loss statement handy I suggest attach the same or atleast carry alongwith you

[King_tier1]

Your documents are perfectly alright... Many have got their visa based on these documents... If you have profit and loss statement handy I suggest attach the same or atleast carry alongwith you

Accountant letter also cover p&l of my business. Thank u again for your reply.
Other members please suggest anything comes to your mind, as its the day.