Previous Earnings | Dividents

[mnvinod]

Hi,
My HSMP is coming up for renewal.

I have been taking minimum PAYE salary of 10K per annum along with dividends totalling upto 40K per annum.

Renewal of HSMP is in Feb. I will be able to file income tax returns only after Apr 5th. I ahve income tax return for the previous financial year.

According to guidance note, for dividend vouchers will only be assessed only if it forms part of earned income. Under Glossary, the definition of Earned/Declared earnings is Earnings that has been declared to tax authorities.

Since tax returns have not been filed yet, I do not have any proof of declared document.

Can you please advice how I should be going about with this?

Thanks,
-Vinod

[mnvinod]

Hi,
Can someone please advice on the below?

Thanks,
-Vinod

[adindas]

If you are an amployee, your case is absoluytely raise an eyebrow . You earn 40K/Annum but PAYE salary of 10K/Annum.

Even a novice will notice that there must be something wrong with it. Tax evasion probably ???. I will not consider the CW as a novice.

Bonafide companies sometimes give incentives in form of dividend, however the dividend of 3/4 of the salary is absolutely nonsense.

Would you please mention which companies are you working.

Fingers cross ......

Hi,
My HSMP is coming up for renewal.

I have been taking minimum PAYE salary of 10K per annum along with dividends totalling upto 40K per annum.

Renewal of HSMP is in Feb. I will be able to file income tax returns only after Apr 5th. I ahve income tax return for the previous financial year.

According to guidance note, for dividend vouchers will only be assessed only if it forms part of earned income. Under Glossary, the definition of Earned/Declared earnings is Earnings that has been declared to tax authorities.

Since tax returns have not been filed yet, I do not have any proof of declared document.

Can you please advice how I should be going about with this?

Thanks,
-Vinod

[goldfish]

Actually a limited company (which I assume is what mnvinod is using) is a common structure when working as an independent contractor / consultant. The proportion of salary:dividends might raise questions in an HMRC investigation, but the HO is not HMRC and the CW will be looking at how many the applicant earned. They are not a tax investigator.

mnvinod, check the HSMP FAQs which specify what category you should use for your application. You can then see what documents are required and what alternatives are possible if you don't have a tax return.

[adindas]

This is not true. They are also interested in knowing that U earn your salary not by deception/breaking any law. That is why they want you to submit a lot of evindence.

but the HO is not HMRC and the CW will be looking at how many the applicant earned. .

[adindas]

I am refering to someone who are employee, not the one who own the companies. If you are the company owner it is rational that you might have more earning form dividend than salary.

Where is the serious reputable companies (not the dodgy one) will give you dividend more than your salary ???.

Actually a limited company (which I assume is what mnvinod is using) is a common structure when working as an independent contractor / consultant. The proportion of salary:dividends might raise questions in an HMRC investigation, but the HO is not HMRC and the CW will be looking at how many the applicant earned. They are not a tax investigator.

mnvinod, check the HSMP FAQs which specify what category you should use for your application. You can then see what documents are required and what alternatives are possible if you don't have a tax return.

[SYH]

Hi,
My HSMP is coming up for renewal.

I have been taking minimum PAYE salary of 10K per annum along with dividends totalling upto 40K per annum.

Renewal of HSMP is in Feb. I will be able to file income tax returns only after Apr 5th. I ahve income tax return for the previous financial year.

According to guidance note, for dividend vouchers will only be assessed only if it forms part of earned income. Under Glossary, the definition of Earned/Declared earnings is Earnings that has been declared to tax authorities.

Since tax returns have not been filed yet, I do not have any proof of declared document.

Can you please advice how I should be going about with this?

Thanks,
-Vinod

it is called a statement from your accountant regarding your finances

[sunny9675]

yes if you are director cum owner of company , you r fine

you get certificate from your accountant with supportings

why i am saying , i work in a/c firm and most of manager owned company structure is like that

this is part of best tax planning and not evasion

regards

[pantaiema]

There is special arragement/case if you are Self Employed person (you own the company). At the moment you could even take the benefit of Transitional Arragements but not if you are working as an employee.

yes if you are director cum owner of company , you r fine

you get certificate from your accountant with supportings

why i am saying , i work in a/c firm and most of manager owned company structure is like that

this is part of best tax planning and not evasion

regards