Earnings from Limited Company via Dividends... advice please

[eppiblue]

Hi

Im currently in the uk on HSMP (2yrs so far) and need to renew this for another 3 years - FLR(HSMP).

I own and run my own Limited Company and I contract out my I.T. services to clients on 6 month contracts usually, and pay myself a minimal salary and draw everything else I need in dividend. Im the sole owner and shareholder of my company and although I employ an accountant I handle the basic admin of my company. I know a lot of IT contractors that are set up like I am.

My question is, referring to the FLR guidance, which category do I fall under for earnings assessment? Employee (dont think so), Independant Contractor, Self Employed?

I would really appreciate if someone knows this, as Im in a common situation and Im sure others would have asked this same question.

thanks everybody
CD

[MyHSMPApplication]

Hi Eppiblue
You will be classified as Self Employed

Cheers
PG

[eppiblue]

Thanks! I just found the case worker notes and that also explains why Im not a contractor

Independent contractors
Applications from independent contractors are considered in the same way as those in salaried employment. The individual might not be running their own company, but will be paid for consultancy services, as and when they are provided.
H.M. Revenue and Customs (HMRC) consider independent contractors (people who are not working for a single employer, but contract out their services as individuals to a single or a number of different employers, on a full-time, part-time, temporary, short term or consultancy basis) to be salaried employees for National Insurance Contributions (NIC) purposes. The employment status is determined by the terms and conditions under which they are engaged and work under their specific contract. Information on employment status for NIC can be found on the HM Revenue and Customs website, at www.hmrc.gov.uk under the section on Intermediaries Legislation IR35, found on the A-Z list via the site map on the HMRC website.
Independent contractors will not operate as a business or as a limited company (or else they will fall into the self-employed category). However, the independent contractors may consider themselves to be self-employed because they do not have continuity of employment with a single employer. As these people may only be able to provide some evidence from the required evidence list for employed people, and some from the self-employed business-based list, they may be unsure of what category they fit into. The new Highly Skilled Migrant Programme has created a specific category for them.