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Please explain if a director of company is employee but why ho need documents such as accountant letter business accounts business bank statement etc.fn286 wrote:Hi Beneviss,
It is really unfortunate your friend was rejected. You mentioned he applied as employed and self employed, you will have to check with he applied as a limited company director or sole trader? I have a feeling he applied under self employment (sole trader) category.
Limited company director is considered employed. The biggest proof can be found in Home office guidance (previous earnings) where it is mentioned that GROSS dividends will be considered if a person is managing a limited company and drawing income from it. This is very similar to a regular salaried employment where you can claim point against gross salary. If not than net dividends would've been considered. Limited company is a corporate body, and cannot be governed as self employed. To give example. Companies pay millions in bonus/dividends to their employees and then go bust. Another scenario would be if a limited company director hires an employee and pays him a salary. How this company would be different for that employee, will he be considered self employed? When both are drawing income from same company how can one will be considered self employed and other as employed. If you work for a good limited company then you know that employee are promoted to director (with profit share) level so does that make them self employed all of sudden? Anyone whose working professional and educated would know. AND still you don't believe me than request the hmrc employer details for a limited company director ...that employment history letter will have 'Limited company employee' written on it, not limited company self employed.
Any how, My understanding is even if you took huge dividends and incurred expenses or losses later in the year doesn't make any difference for HO. Net profits are considered for self employment only where no limited company is formed. I'm aware that all limited company directors and self employed traders undergo scrutiny during applications.
Please do share when you find out more about his situation, employment status and what really triggered the rejection? What I'm trying find out a case where a limited company director is rejected for same reason (claimed higher income earlier but later incurred expenses and paid taxes on reduced income).
vin123 wrote:pinkpop,
There is a lot of 'self-employment' misunderstanding spread in this forum as I see it.
It is very simple and a universal rule in any country except monopolies - you work, you generate a revenue or income and you pay tax to the government.
Whether you worked as a limited company director with shareholdings or as a registered self-employed/sole-trader - all it matters to UKBA is to see evidence of the same. If you worked as a limited company director, the only way you can show you paid tax is by taking the company account statements (because dividends are not double taxed, so self assessment may show ZERO tax).
If you do not take evidence, you will be rejected. Simple. Period.
Hence it is very important for people to get an accountant in place at least 3-4 months before they go for tier 1 extn or ILR application.
So he or she will understand each individual situation and prepare their documents.
That's perfectly a possible case.pinkpop wrote:
So if a director of comapny with shareholding only take income monthly though out whole 5 years and never take dividents what this stiuation will be like?
sheraz_aries wrote:For Tier 1 General 5 year employed route, do HO still check tax records with HMRC? was wondering as if your work in a company then you already get tax deducted by employer before you get salary each month in your account
My friend has 6 years p60s and all yearly income are met ho requirement except one year for maternity leave. Does she need submit any business account etc.. in her initial t1g and extension she only submitted payslips ans p60s and she is not a director of company any more as the company has been sold to a british in 2012 but she still work in that company.vin123 wrote:That's perfectly a possible case.pinkpop wrote:
So if a director of comapny with shareholding only take income monthly though out whole 5 years and never take dividents what this stiuation will be like?
For montlhy income, there will be payslips, and for payslips there will be a P60 issued at the end of year. So if a director of the company took only salary, he or she will need P60 to prove how much tax they've paid on salary.
If the salary taken is minimal (for e.g £12K per annum without any dividends - which does not really meet the extension criteria), then they need company accounts statement to show company revenue and net profit. This along with ownership is sufficient to prove the income generated will qualify for ILR or tier 1 extension.
Assuming your friend is a main applicant, 1 year maternity is not a problem.pinkpop wrote:
My friend has 6 years p60s and all yearly income are met ho requirement except one year for maternity leave. Does she need submit any business account etc.. in her initial t1g and extension she only submitted payslips ans p60s and she is not a director of company any more as the company has been sold to a british in 2012 but she still work in that company.
vin123 wrote:sheraz_aries wrote:For Tier 1 General 5 year employed route, do HO still check tax records with HMRC? was wondering as if your work in a company then you already get tax deducted by employer before you get salary each month in your account
HO will not and cannot check with HMRC or companies house records. Under normal cases, they are not allowed to access your information without your permission. There are clear cases where HMRC and UKBA are permitted to share information but they mainly are from a law enforcement perspective.
UKBA does not have permission to access an applicant records held in other computer systems. If anyone in these forums claims UKBA computer systems and HMRC computer systems are linked for personal records - then they are lying. All government departments adhere to strict data protection and privacy rules.
That is the reason why a candidate is expected to take the right set of original documents for extension application or ILR. They qualify only on individual merit. Simple.
IF you work in a company, yes you get a tax deducted salary every month. At the end of tax year, you will also get a statement that shows the tax paid for the financial year. Its called P60. So that statement is an important document that proves how much tax you paid. UKBA cannot access that information from HMRC records, hence you have to take the original proof with you on the day.
Read the declaration part of the application form again, the question whether UKBA and HMRC computers are linked or not is irrelevantvin123 wrote:UKBA cannot access that information from HMRC records, hence you have to take the original proof with you on the day.
vin123 wrote:Assuming your friend is a main applicant, 1 year maternity is not a problem.pinkpop wrote:
My friend has 6 years p60s and all yearly income are met ho requirement except one year for maternity leave. Does she need submit any business account etc.. in her initial t1g and extension she only submitted payslips ans p60s and she is not a director of company any more as the company has been sold to a british in 2012 but she still work in that company.
Please tell your friend to take a child's birth certificate that shows the applicant name as mothers name and the financial year where there is no income or salary missing.
In some cases, UKBA May ask to prove with documentation from her employer that states maternity period of leave.
My long and difficult to read postManka10 wrote:Read the declaration part of the application form again, the question whether UKBA and HMRC computers are linked or not is irrelevantvin123 wrote:UKBA cannot access that information from HMRC records, hence you have to take the original proof with you on the day.
UKBA can access any info they want about the applicant if they have any doubts
Your long and difficult to read posts won't change the way UKBA functions
Example:I understand that all information provided by me to the Home Office will be treated in confidence; that it may be disclosed to other government departments, agencies, local authorities, the police, foreign governments and other bodies for immigration purposes or to enable them toperform their functions; and that, if such bodies provide the Home Office with any information about me which may be relevant for immigration purposes, it may be used in reaching a decision on my application.
+1Manka10 wrote:Your long and difficult to read posts won't change the way UKBA functions
So this forum is like a battleground for wining and losing - not helping others ???? LOLsmartkhan wrote: If you win, no need to explain. If you lose then you should not be there to explain.
Correct - P60 will be enough if she was paid in during the maternity period. That is usually treated as continuing in employment so as long a documentation exist for the same, HO will be happy to accept the same. Good luck to your friend.pinkpop wrote:
Will tell her get the certificate ready and even in the maternity leave she earn more than £14000. Her absences in whole 5 years around 60 days and all those absences are under annual leave, does she need prove a company letter to say it is annual leave or the payslips and p60s will be enough to prove it? Thanks a millon for answering me lots of question.
Thanks vin123 your answers are much appreciated. All the best for your futurevin123 wrote:Correct - P60 will be enough if she was paid in during the maternity period. That is usually treated as continuing in employment so as long a documentation exist for the same, HO will be happy to accept the same. Good luck to your friend.pinkpop wrote:
Will tell her get the certificate ready and even in the maternity leave she earn more than £14000. Her absences in whole 5 years around 60 days and all those absences are under annual leave, does she need prove a company letter to say it is annual leave or the payslips and p60s will be enough to prove it? Thanks a millon for answering me lots of question.