EEA2 with EU National Director of LTD company

[piede828]

Hi,

My wife (American) and me (Italian) moved to London about a month ago. She has a 6 month family permit that will expire in August.

I am director and shareholder of a UK limited company, together with other two persons.

I was looking into the EEA2 application and wondering what should I provide as proof of the fact that i am exercising my treaty rights since:

- My company started just a few months ago and we haven't get any dividends yet
- We are not planning on giving us the directors a monthly salary since we are not employed into the company

Moreover, while on the EEA2 checklist the requirements are less strict, I have read of people seen their application refused for various reasons.

Thanks in advance for the help.

Pietro

[sheraz7]

An EEA national as an alternative to being self employed/worker can become self sufficient on the basis of any saving/income to excercise its treaty rights. However, private medical insurance will be needed in that case.

[EUsmileWEallsmile]

Hi,

My wife (American) and me (Italian) moved to London about a month ago. She has a 6 month family permit that will expire in August.

I am director and shareholder of a UK limited company, together with other two persons.

I was looking into the EEA2 application and wondering what should I provide as proof of the fact that i am exercising my treaty rights since:

- My company started just a few months ago and we haven't get any dividends yet
- We are not planning on giving us the directors a monthly salary since we are not employed into the company

Moreover, while on the EEA2 checklist the requirements are less strict, I have read of people seen their application refused for various reasons.

Thanks in advance for the help.

Pietro

You would need to demonstrate what economic activities you are doing in the UK. A self-employed person would be a qualified person.

Alternatively, you could rely on being self-sufficient, but would need health insurance.

[piede828]

My economic activity is the company. I work full-time for it but I am not employed. Would it be enough if I provide docs that show I am director and shareholder together with invoices of the company showing its economic activity?

My fear is that my bank statement would not show payment from the company at the moment: we started a few months ago and I would get money later on this year.

Thanks

[EUsmileWEallsmile]

My economic activity is the company.

If you can explain your case to the home office with appropriate evidence, the application should succeed.

[dalebutt]

My economic activity is the company. I work full-time for it but I am not employed. Would it be enough if I provide docs that show I am director and shareholder together with invoices of the company showing its economic activity?

My fear is that my bank statement would not show payment from the company at the moment: we started a few months ago and I would get money later on this year.

Thanks

If you can show letter from your accountant, it would be a sufficient replacement of bank statement.

[piede828]

That's good news. What should the accountant's letter sayy? That I am one of the director/stakeholder and am entitled to part of the dividends?

Sorry about the questions, but I would like to be as sure as possible to not risk a refusal because of the way I have explained my position.

Thanks!

[dalebutt]

I really do not know what the account letters should say, I will have to check but will hope someone who knows will add to this for you, but I do know people who have used it in place of their bank statements.

[Imshzd]

TO WHOM IT MAY CONCERN

Dear Sir/Madam,
Mr xyz,National insurance number111111,
UTR:22222222 is working as a self employed/director in __________ Limited. Company registration no.: ________
Registered Office: ______________________________________________
This is to confirm that we act as Accountants and professional advisors for the above named client.
________LIMITED is registered with Companies House as a limited company (Companies House registration number _______)
________ LIMITED has been trading since ________ 2012, providing general _________services such __________contract office and _________ etc.


Yours sincerely,

[dalebutt]

Sorry if I may ask , are you an accountant? The letter seems pretty much like it

[dalebutt]

I will avoid explanation if I met all the requirements.

[sheraz7]

http://www.immigrationboards.com/viewtopic.php?t=105916

[dalebutt]

Very good link sheraz perhaps the MOD should make it a permanent sticky?

[piede828]

Guys, thanks for the precious information.
I will have my accountant write a letter like that.

The link is very useful even though I feel like being a director is a little different than being a just self-employed...

[Babz]

Hi,

My wife (American) and me (Italian) moved to London about a month ago. She has a 6 month family permit that will expire in August.

I am director and shareholder of a UK limited company, together with other two persons.

I was looking into the EEA2 application and wondering what should I provide as proof of the fact that i am exercising my treaty rights since:

- My company started just a few months ago and we haven't get any dividends yet
- We are not planning on giving us the directors a monthly salary since we are not employed into the company

Moreover, while on the EEA2 checklist the requirements are less strict, I have read of people seen their application refused for various reasons.

Thanks in advance for the help.

Pietro

If you operate through a limited company, then you are not self-employed in the normal sense. In this situation you are likely to be a director, shareholder and employee of the company or just a director and shareholder.

However,some establishments,including the UKBA consider you as
self employed if you :

A) hold more than 25% shares
B) are a company director.

If you applying based on you spouse being self-employed, UKBA wants to see: invoices/receipts, accountant's letter/audit,business bank statement and class 2 NI..In other words,your spouse has to register with HMRC for self-assessment as as a self-employed person...

[Babz]

Guys, thanks for the precious information.
I will have my accountant write a letter like that.

The link is very useful even though I feel like being a director is a little different than being a just self-employed...

They also want to see an independent audit of your account/invoices (i.e profit/Loss) from your accountant...
They also want to see your class 2 NI contributions....

[piede828]

How does this relate to the fact that the company is just a few months old?

[Babz]

How does this relate to the fact that the company is just a few months old?

My spouse was 3 weeks into her self-employment and these were some of the reasons they gave for refusing my application....

[piede828]

And how did you manage to solve the situation?

[Babz]

And how did you manage to solve the situation?

Actually,I had these documents sent to them a month after I'd applied but they were not acknowledged so I've sent them as supporting docs for my appeal...

If you are self-employed,you normally issue invoices to your clients,bearing in mind some people pay cash..So the work of the accountant(who's registered with one of the accredited bodies recognised by UKBA) is to audit payments via your invoices,whilst indicating those done by cash and/or those payed into your business account etc...For instance,if you'd been in operation for a month, he'll add up your take-ins for the month and do a projection covering the next 11 months..This is what UKBA refers to as an audit by an independent body(which in this case is your accountant)...
Regarding class 2NI contribution,one you register with HMRC for self-assessment as a self-employed person, HMRC will first send you a welcome letter stating when you'll be receiving your bill.If you'd indicated to pay via direct debit,then you'll receive a month bill otherwise,you'll receive bills every 6 months....
However, if you need to make an urgent RC application,you can use the Faster Payment via your bank account into the HMRC account.You can find this while adding a new payee..Most banks provide facilities to search for HMRC NI contribution details i.e Account name:HMRC NICO; Sort code: 08 32 20; Account number:12001004....
Your payment reference here will be your NI number....You can then calculate your NI contribution at the present rate of £2.70 X number of weeks you've been self-employed...Once you've made the payment,this will appear in your statement and you can use it as proof of payment...

I hope this helps...

[piede828]

Should I consider myself self-employed if I am not invoicing the company but earning just a share of the dividends?

Thanks!

[Babz]

Should I consider myself self-employed if I am not invoicing the company but earning just a share of the dividends?

Thanks!

As a director of a limited company, you can take money from the company in 3 ways:Salary, expenses and benefits..
If you want the company to pay you a salary, expenses or benefits, you must register the company as an employer with HM Revenue & Customs (HMRC).
The company must take Income Tax and National Insurance contributions from your salary payments and pay these to HMRC.
As for dividends, you can only pay dividends if you make a profit. and if you are earning dividends,you cannot be considered as self-employed because you pay dividends to shareholders.

If you are still finding it confusing,i'll advice you speak to an accountant

[piede828]

My accountant told me that instead of getting a monthly salary I could get money through dividends. In the meantime, we can get money for our expenses as a loan. This would be our way of getting money from the company at the moment. Do you think that having a letter that states that would be enough?

Thanks

[Babz]

My accountant told me that instead of getting a monthly salary I could get money through dividends. In the meantime, we can get money for our expenses as a loan. This would be our way of getting money from the company at the moment. Do you think that having a letter that states that would be enough?

Thanks

You must bear in mind you are here to satisfy UKBA and not HMRC...Most of the UKBA caseworkers are temps just like anybody else . They are not gods...I believe what they follow is a checklist of documents. They hardly use any discretion. I believe most of them don't even know what dividend means...They only look at the documents being submitted..If they tick all the boxes,good..otherwise,the application is refused if any of the items on their list is missing...
I can only suggest 2 options: register with HMRC as self-employed and give them all the listed documents...OR as an employee of the limited company being paid a monthly salary...UKBA wants to see that you are paying NI and/or tax.....
i still advice you speak to an accountant/solicitor that is experienced in visa applications...

[dalebutt]

UKBA are clearly going against their own guidelines, it's annoying how they just come out of nowhere and redraft things as they were. Check the guidelines for self employed applicants and see the requirements.