Income earned in 12 month (out of 15)

[Tier1extn001]

Hello all,

I worked thru my ltd company for 2 months and paid myself one time dividend which I wish to include in the 12 month bracket.So I worked in July-August 2012 but paid myself on 1st December 2012.
I have a renewal in Nov 2013.Question is will HO consider the period when the income got generated? (July-Aug) or when it was paid (Dec-12) when considering the 12 month period? in other words when showing income in 12 months period in Nov this year can I include the dividend that I paid to myself in Dec-12?

thanks in advance.

[Tier1extn001]

any one please?

[paba89]

any one please?

I think to make your case easier and avoid any confusion you count that money as dec earnings. But you should ask your accountant for authentic answer to this....

[Tier1extn001]

thank you..problem is my accountant know nothing about visa eligibility and stuff...

Senior member : Please can you assist.thanks

[Tier1extn001]

help, anyone?

[alifkhan]

Hello all,

I worked thru my ltd company for 2 months and paid myself one time dividend which I wish to include in the 12 month bracket.So I worked in July-August 2012 but paid myself on 1st December 2012.
I have a renewal in Nov 2013.Question is will HO consider the period when the income got generated? (July-Aug) or when it was paid (Dec-12) when considering the 12 month period? in other words when showing income in 12 months period in Nov this year can I include the dividend that I paid to myself in Dec-12?

thanks in advance.

You should include the jul-aug period in your 12 months window as that is when you worked. As far as I known, one can pay the dividend into the personal account whenever the business wishes to do so after it has declared the net profit.

Moreover, if you start your 12 month period from july, you will have to apply by october.

[Tier1extn001]

Senior members please can you confirm
this that I would have to include July -aug period and would have to apply in October?
I plan to apply in December, my visa expires march next year.

Thanks

[bubin123]

You can indeed add this dividend as income for the month of December. It does not matter when your ltd company earned / invoiced for that said money.
Since you are employed as director (I assume so), all the dividend income will be considered based payment dates...
In my application, I added a dividend payment made on Jan 2012 based on income of Nov + Dec 2011.

[Tier1extn001]

Hi, thanks for your reply.
Did you include period nov and December when you applied?i don't intend to include July and aug in my 12 mths period.

[Tier1extn001]

hello all - please can other senior members/gurus confirm this .Is it ok if I dont include July and Aug month and still claim earnings for the dividend that I paid from the business in November? if not then I would have to apply in september, instead of December.Any advises please do share.kind regards.

[durranima]

[quote="bubin123"]You can indeed add this dividend as income for the month of December. It does not matter when your ltd company earned / invoiced for that said money.
Since you are employed as director (I assume so), all the dividend income will be considered based payment dates...
In my application, I added a dividend payment made on Jan 2012 based on income of Nov + Dec 2011.[/quote]

You are right bubin123.

[Tier1extn001]

one of my friends accountant advised I would need to include July-Aug 2012 (a period when I worked using my ltd co- am the director) to claim points for dividends that I paid myself in November last year and would have to apply in October this year to cover the 12 mth period - I am confused now

[karg_g]

Hi,

Agree with Bubin123. You are different from your company. If your company goes bust, debtors can not attach your personal property and hence the reasoning that a company can declare dividends as and when needed provided it meets all other requirements.

I saved up quite a lot of money in my company's business account before my 12 month qualifying period kicked in for my visa extension. The reason being that I can be absolutely sure I will meet the required earnings even if my company loses contract or in between searching for new clients. Luckily, my contract ran through fine and still running

If you are sole-trader/Self employed you should only include the money made in the past 12 out of 15 months.
"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 "

[Tier1extn001]

Thank you.I am the director and only shareholder of my ltd company.If that's the case then It will be fine with my application.i am currently permanent at a firm and will not be using my ltd co for a longer time.Hope the docs that I provide will be sufficient for the caseworker.

[ilrapplicant2013]

Includd the dividend but ensure your voucher is for december

[Tier1extn001]

thank you.My dividend voucher is as of November 2012.I will be submitting the voucher, letter from my accountant who is ACCA qualified, personal and business bank statement to support my income.hope these all be sufficient.