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Employee vs self employed for ILR

Only for queries regarding Indefinite Leave to Remain (ILR). Please use the EU Settlement Scheme forum for queries about settled status under Appendix EU

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nkc14
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Posts: 11
Joined: Thu Apr 03, 2014 11:08 pm

Employee vs self employed for ILR

Post by nkc14 » Thu Apr 03, 2014 11:29 pm

Hello guys, need your urgent response on this.
I am getting my documents ready for ILR (PEO, Tier 1). I earn a salary (PAYE registered) from my limited company. The basis of my application is solely on my gross salary for the last 12 months.
My accountant (ACCA) informs me I am not self employed but an employee of the company. I am the only director and employee.
It seems a bit confusing. My Tier 1 extension was based on salary from the same company and sailed through smoothly.
Any personal experiences or advice will be appreciated.
Thanks

Mostar95
- thin ice -
Posts: 77
Joined: Mon Feb 20, 2012 6:18 pm

Re: Employee vs self employed for ILR

Post by Mostar95 » Fri Apr 04, 2014 8:44 am

This is fine. Continue as salaried person of your limited company - by getting salary only - you will be much safer than registered as self-employed or mixing your earnings as salary + dividend(this option saves you some money on national insurance), as you will be paying your full tax due every month. Go for a PEO and you will get your ilr straight away as a number of people did on this forum.

And one good news is that employer NIC will be exempt up to £2,000 from April 2014 so this is the best time to continue only on salary from your own limited company.

nkc14
Newly Registered
Posts: 11
Joined: Thu Apr 03, 2014 11:08 pm

Re: Employee vs self employed for ILR

Post by nkc14 » Fri Apr 04, 2014 1:28 pm

Thanks!

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