Financial Requirements

[vikas_2603]

Hi All, I am a british citizen applying for settlement visa for my wife who is an Indian citizen. we got married in May this year. I am now in the UK and she is in India. I work as a freelance consultant under my own limited company. My company financial year run October to October whereas the personal financial year runs April to March. As I started my company in October 2012, I have submitted one year of accounts to HMRC so far (Oct 2012 to October 2013).

As per the guidelines, I am declaring myself as a self employed person. In terms of financial requirement, according to my personal SA02, my income in the FY 2013 (Apr 2013 to Mar 2014) is well above the requirement of £18,400. However, I withdrew only £17190 from my business account between Oct 2012 and October 2013. The majority of the dividends I drew from the company was between October 2013 and March 2014 when my personal FY ends.

My question is - are they going to consider the money withdrawn by me only between Oct'12 & Oct'13 (company tax year) as my income or they will consider my personal SA302 details as my earnings?

The guidelines clearly suggest that I should provide personal bank statements corresponding to the business bank statements for the company tax year.

[abdulraheem123]

HI VIKAS

when i did my accounts the accountant show that both ct600 salary and self-employed return was above the £18600. see if your accountant can show this for you.

also ask your accountant if he be giving you monthly payslips? or a yearly payslip?

As a LTD company are you registered for RTI with HMRC? ask your accountant

[vikas_2603]

Hi Abdul

Thanks for your response. My company tax returns and my personal SA302 (self assessment) both show the income of more than £18600. The issue here is... my company tax year runs from November'12 to October'13 and in this period, I drew only £17000 from my business account into my personal account. the self assessment runs from April 13 to March'14 and I have drawn enough money during this personal financial year. My question is - is it mandatory to show that in your personal account, you must draw more money (salay+ dividend) from business account during the company financial year?

My accountant has provided me each month's salary slips.

thanks

[abdulraheem123]

"My question is - is it mandatory to show that in your personal account, you must draw more money (salay+ dividend) from business account during the company financial year?"


if you have only withdrawn £17k into personnel account for your business financial year, then if the visa officer trys to add up all your withrawings on your bank statements he wont find the minimun £18600 he is looking for.

what you can do is to show him maybe 18 months bank statements- to see if that can confuse him a bit, as if you are now showing 18 months bank statements and he trys to add up all your withrawings then hopefully it should be more than £18600

[rizmir]

Hi
if some one highlight please. I am a director of a limited company and company is not of a type as specified in paragraph 9(a). i.e., i am only shareholde. Its mentioned in appendix FM that if a person is getting salary in such a type of company that could be counted as salaried person in category A or B of employment.
I am getting salary since 7 months of 14K now i am thinking to have dividend of 5K to make 19K so that i can fullfill the 18600 requirement. In guidance its mentioned that category A or category B can be combined with category C(non-employment, i.e., dividend etc).

If any person highlight whether i picked the right understanding.

will be highly appreciated.
regards

[abdulraheem123]

Hi
if some one highlight please. I am a director of a limited company and company is not of a type as specified in paragraph 9(a). i.e., i am only shareholde. Its mentioned in appendix FM that if a person is getting salary in such a type of company that could be counted as salaried person in category A or B of employment.
I am getting salary since 7 months of 14K now i am thinking to have dividend of 5K to make 19K so that i can fullfill the 18600 requirement. In guidance its mentioned that category A or category B can be combined with category C(non-employment, i.e., dividend etc).

If any person highlight whether i picked the right understanding.

will be highly appreciated.
regards

rizmir if your a director of a limited company with only one shareholder which is yourself then you apply under Cat F
go the Cat F section and read that, then it will make since to you that you have to apply under Cat F

[rizmir]

Hi abdulraheem
thanx for ur post

''A limited company is owned by its shareholders. Where such a shareholder is also a director employed by the company, they may be paid a salary and receive dividends, which can generally be counted, as appropriate, as employment or non-employment income under Category A, Category B or Category C.

However, if the company is of the type specified in paragraph 9(a) of Appendix FM-SE, the person’s income will be considered under Category F or Category G. This is because in a company in sole or limited family ownership there is scope for doubt as to the effective control of the company, as the person is a director and shareholder or the other shareholders are family members of that person. In that case, instead of the employment evidence in Category A or Category B or the dividend evidence in Category C, we need evidence about the operation of the company''.

after reading this paragraph particularly first part that such type of income would fall under category A, or category B or C which is mine case
only when different people involve as share holders then such employment would fall under category F as 2nd part of paragraph showed
please highlight this after analysis
regards

[abdulraheem123]

Has anyone on here who has a limited company and has not registered for RTI PAYE?
what i would like to know is how your salary was shown on the self assessment tax return?

Thanks in advance for any help

[vikas_2603]

"My question is - is it mandatory to show that in your personal account, you must draw more money (salay+ dividend) from business account during the company financial year?"


if you have only withdrawn £17k into personnel account for your business financial year, then if the visa officer trys to add up all your withrawings on your bank statements he wont find the minimun £18600 he is looking for.

what you can do is to show him maybe 18 months bank statements- to see if that can confuse him a bit, as if you are now showing 18 months bank statements and he trys to add up all your withrawings then hopefully it should be more than £18600

Is it required to have the money in my personal bank account? Will they not consider my business bank account? I spoke to a couple of solicitors and they told me that it will be fine if my business bank account shows the incoming amount more tha £18600. My accountant has also given me a letter saying that my income from the business is xxxxx. This figure is more than the threshold. He says that even if you have not withdrawn all the money from your business, the amount us in your business bank account as disposable income.

Thanks.

[abdulraheem123]

My accountant has also given me a letter saying that my income from the business is xxxxx. This figure is more than the threshold. He says that even if you have not withdrawn all the money from your business, the amount us in your business bank account as disposable income.
Thanks.

yeah i know what you mean as the business bank account being used as your disposable income,
but the question is will the visa officer understand that and accept it as your income?

[vikas_2603]

My accountant has also given me a letter saying that my income from the business is xxxxx. This figure is more than the threshold. He says that even if you have not withdrawn all the money from your business, the amount us in your business bank account as disposable income.
Thanks.

yeah i know what you mean as the business bank account being used as your disposable income,
but the question is will the visa officer understand that and accept it as your income?

Thanks Abdul.

Just to mention, I have my mother (Indian citizen) as a shareholder in the company (40%). The dividends that I have taken from the business account during the financial year was £19000 and I took them all into my account. So, technically my personal account has received more money than the threshold. However, the dividend vouchers created by my accountant divide those dividends in 60:40 split and on paper, the money withdrawn into my account becomes less than the threshold.

Any more opinions guys?