HSMP Dependant Visa Rejected - urgent help needed

[sekhar_software]

Hi all,

I've applied for my wife's hsmp dependant visa but, because of invalid evidence it got rejected. Could someone help me on the following?

I am a software contractor since 6 months getting very good daily rate. I have my own limited company to which my employer deposits the invoice amount every month.

Since I am the director of my company I transfer this amount from my company account to my personal account when I need money.

Now one of the reasons for the rejections is that my personal account has the transactions (incoming money from my business account) detailed in the bank statements. They said, they need to know the origin of the amount.

This is the exact text they wrote in the rejection letter:

"I also note that the bank statements show large deposits shown as funds transfer, but the origin of which has not been proven. I am therefore not satisfied with the evidence you have produced to support your claims that your husband has a sufficient and reliable income with which to support the 2 of you. You have provided no evidence that you have work arranged for yourself or that you have made applications for employment. I am not therefore satisfied that you and your spouse or civil partner will be able to maintain yourselves (and any dependants) adequately without recourse to public funds."

please guide me what to do in this situation!

Thanks,
Raj

[Wanderer]

Hi all,

I've applied for my wife's hsmp dependant visa but, because of invalid evidence it got rejected. Could someone help me on the following?

I am a software contractor since 6 months getting very good daily rate. I have my own limited company to which my employer deposits the invoice amount every month.

Since I am the director of my company I transfer this amount from my company account to my personal account when I need money.

I don't think u can't do this.

When you transfer money to ur personal account do you do it through the PAYE system? I've ur drawing it gross and keeping the gross amount ur evading tax and that's a criminal offence.

Please clarify.

[sakura]

Yes, I also thought it seemed dodgy.

Sekhar, do you pay business tax on the income? I'm thinking you would have to pay business tax and if you are transferring it to your personal account, you'd probably have to pay personal tax on top of that? I don't know...just wondering out loud.

But....did you include any pay slips? Any P45s/P60s? Anything to indicate that you are paid £xxx per month, £xxx per year? Even if you have a regular income, you don't have anything (legal) to prove this, do you?

[Wanderer]

Yes, I also thought it seemed dodgy.

Sekhar, do you pay business tax on the income? I'm thinking you would have to pay business tax and if you are transferring it to your personal account, you'd probably have to pay personal tax on top of that? I don't know...just wondering out loud.

But....did you include any pay slips? Any P45s/P60s? Anything to indicate that you are paid £xxx per month, £xxx per year? Even if you have a regular income, you don't have anything (legal) to prove this, do you?

Yes, I;m an IT contractor too I used to have my own Limited but I dropped it now cos the Chancellor is gunning for you boys...

The way it works is the Limited gets the money from the client and of course as a limited co is a seperate legal entity from the directors and employees, the money belongs to the company and NOT the directors like this guy seems to think.

The money is taken out via the PAYE system, income tax/NI paid and the company left with nothing, so no Corporation tax due - Chancellor's had his money, he's happy. simplistic look of course.

You have to look with any amount of earned income - where is the tax paid? In this case I can't see that at all.

The OP seems to be treating the money as his, like a sole-trader, and possibly hoping the company income less drawings equals profit and tax to be paid thereon.

Doesn't work like that with a limited, the company and it's directors are totally separate taxable entities.

[OFCHARITY]

If you operate through your own limited company, you can take earnings both as PAYE and as dividends, with dividends you do not pay the taxes until after the end of the tax year when you do your self assessment tax return, you also do not have to pay NI on dividends. If you take dividends you should get dividend vouchers done up to show this, you should also ensure that any transfers from your business account to your personal account shows the company name and the word dividend as the reference. This allows you to show the source of the income.

I think it is never a good idea for someone on HSMP to take all their earnings as dividends as you must remember that you often have to prove your earnings as an HSMP holder and going through PAYE is always simpler as you'll have payslips, P60's etc. to show. I have heard of a case where homeoffice staff have actually said they don't know what dividends are.

My suggestion is that you
1. get a qualified accountant to give you advice but of course resist any suggestion from him/her to take all your earnings as dividend in order to reduce your tax bill as you must remember that your HSMP status makes this unwise.

2. Reapply for your wife's EC, include your company's certificate of incorporation, VAT certificate, documents from companies house stating who the shareholders are, company's bank statements, contracts etc. I would also get the accountant to write a letter explaining the way in which you operate and take earnings etc.

[HLP]

I am also an IT contractor. I have been purposefully working under an umbrella company during the period we have been collecting ILR documentation - exactly to aviod the situation you are in. I also always provide all original contracts.

Did you not provide the original contract you have with the client with your application? This would ultimately prove you have current on-going income.

To reject your application under grounds of maintenance this application had to go to quite a high level... see Section 3.5 and 4.6. http://www.ind.homeoffice.gov.uk/docume ... iew=Binary
It would be interesting to knwo if the application has actually been refused at this level correctly. (And if refusal in this area is really rare).