ILR HSMP JR - IT Contractor - Set (O)

[sudsa]

Hi

I am a IT contractor and director of a limited company.(Fall under HSMP JR ILR but 5 yeras) On this forum I see people refer themselves as Self - employed even if they are the directors of limited company. I was told I should select 'employed' if I am a director of the company. This is really confusing which one to choose as there are sucessful/unsucessful in both cases. I have the appointment in two days and highly appreciate if someone has come across similar situations.

1. Am I self employed ? or employed ? Or Can I leave the section and ask the case worker during the PEO interview ?

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10G
Highly skilled migrant If you are applying for indefinite leave to remain on completing 5 years’ continuous stay in the UK under the Highly Skilled Migrant Programme (HSMP) and other appropriate categories, in addition to the relevant documents in 10A, you must provide the following:

If you are employed, document(s) showing your economic activity and your personal earnings during your stay in the UK.

If you are self-employed, you should provide evidence of the progress of the business.

2. I dont have any dividend vouchers or pay slips but has the company accounts filed for all the past 2 years and have the following docs
2.1 Accountant's letter stating the gross and net income of the company and expected profit for the current financial year. (it can be very close to accurate as I have only 1 month left in the period this year).
2.2 Accounts filed by the accountant for past 2 financial years
2.3 Company and personal bank statements
2.4 Invoices for the past 12 months. This will reflect the income of the company each month.
2.5 P45 and P60's for all the years

Will this list be OK considering I need to prove 'I am economically active' under HSMP ILR JR ?

3. What'd I need to fill 5.3 under section 5 ?

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If so, what is your pay each month after income tax and other deductions?

I pay a minimal monthly salary. Then most of my income is taken as dividends in random all year and obviously this is not consistant. I am planning to put

Code: Select all

xyz=(the dividend entitled to me as per my accountant letter 2.1 above/12)+monthly salary 

eventhough I have paid myself more in the past 12 months. Normally my accountant will do reconciliation at the end of the financial year but my company's financial period ends only Oct 31. Will the case worker raise Questions like 'why I have paid myself more money ?' looking at the company's bank statements ?

could someone address this asap plz ?

[geriatrix]

I am a IT contractor and director of a limited company.(Fall under HSMP JR ILR but 5 yeras) On this forum I see people refer themselves as Self - employed even if they are the directors of limited company. I was told I should select 'employed' if I am a director of the company.

Under Part 6A of these Rules, "Self-Employed" means an applicant is registered as self-employed with HM Revenue & Customs, or is employed by a company of which the applicant is a controlling shareholder.

[destiniation_london]

Hi

I am a IT contractor and director of a limited company.(Fall under HSMP JR ILR but 5 yeras) On this forum I see people refer themselves as Self - employed even if they are the directors of limited company. I was told I should select 'employed' if I am a director of the company. This is really confusing which one to choose as there are sucessful/unsucessful in both cases. I have the appointment in two days and highly appreciate if someone has come across similar situations.

1. Am I self employed ? or employed ? Or Can I leave the section and ask the case worker during the PEO interview ?

Code: Select all

10G
Highly skilled migrant If you are applying for indefinite leave to remain on completing 5 years’ continuous stay in the UK under the Highly Skilled Migrant Programme (HSMP) and other appropriate categories, in addition to the relevant documents in 10A, you must provide the following:

If you are employed, document(s) showing your economic activity and your personal earnings during your stay in the UK.

If you are self-employed, you should provide evidence of the progress of the business.

2. I dont have any dividend vouchers or pay slips but has the company accounts filed for all the past 2 years and have the following docs
2.1 Accountant's letter stating the gross and net income of the company and expected profit for the current financial year. (it can be very close to accurate as I have only 1 month left in the period this year).
2.2 Accounts filed by the accountant for past 2 financial years
2.3 Company and personal bank statements
2.4 Invoices for the past 12 months. This will reflect the income of the company each month.
2.5 P45 and P60's for all the years

Will this list be OK considering I need to prove 'I am economically active' under HSMP ILR JR ?

3. What'd I need to fill 5.3 under section 5 ?

Code: Select all

If so, what is your pay each month after income tax and other deductions?

I pay a minimal monthly salary. Then most of my income is taken as dividends in random all year and obviously this is not consistant. I am planning to put

Code: Select all

xyz=(the dividend entitled to me as per my accountant letter 2.1 above/12)+monthly salary 

eventhough I have paid myself more in the past 12 months. Normally my accountant will do reconciliation at the end of the financial year but my company's financial period ends only Oct 31. Will the case worker raise Questions like 'why I have paid myself more money ?' looking at the company's bank statements ?

could someone address this asap plz ?

sorry , I didn't mean to hijack your thread, but would it be possible for you to share template from your accountant letter.

With regards to your question about employed/self-employed, i'd think a director of a company is an employee of a limited company. SO I'd be tempted to choose employed

For Salary, I'd write the net take home salary without dividends and if questions are raised about it I'd clarify it with the caseworker

Please do share copy of your accountant letter.

[sudsa]

Finally got the Settlement in Croydon PEO. Thanking this forum and members for valuable inputs.

Despite all my Questions answered partly and some fully , I am glad that I did manage to get. The most important bit was I selected 'Self-Employed' in 10G and took a page from Homeoffice website why I should be considered as 'Self-Employed'.

1. After the security check at the ground floor there was a Basis check of the application forms, bank statements and passports in the next counter. I guess he was primarily checking with Passport details , VISA in the computer and also he was entering the details of the supportive documents .
2. Asked to pay in the first floor and they issued me a token.
3. My appointment was at 12 but I was called only by 12:45 by the case worker. This is the most important phase. It took about 1 hour 15 mins for me which seems a bit longer compared to what other guys in this forum experienced.

3.1 He asked about my work , I told him I am self-employed and then he asked the latest Accounts filed, letter from the accountant , the invoices of the past 12 months , 12 month company bank statements. Also he asked me to tick in the copies of the bank statements that correspond to the invoices. Also I saw him very much pleased when I gave the letter from HMRC of corporation tax.
3.2 He asked about the payslips but I didn’t have any and told that ‘am self-employed and I pay myself by bank transfer.
3.3 No personal bank statements , P60’s /P45’s he mentioned. All he asked about Co-Hab was 'when did my wife joined me ?'. No documents were asked eventhough I did ask ‘would you want anything else?’.
3.4 He spent sometime on the absence of my stay with my passports
3.5 Then asked me to come back after 2 hrs and I collected the passports with duly stamped.

4. It took longer because I was asked to highlight the transactions in the company bank statements. He kept entering all the details on his system. Moreover atleast three times he disappeared verifying the company registration details and to speak to some senior case worker about the ‘Corporation tax’ document.

It is not possible to take photocopies of everything but they take photocopies in case we don’t have them. Surprised to see that the personal bank statements and Co-Habit documents were never asked.

Apart from taking longer time , I had a good conversation and gave straight answers like ‘The exact amount of pay monthly isn’t possible for me as I keep my pay within the company structure’.

IT contractors/directors – here is my advice from experience. In addition to all the usual docs take documents like HMRC corporation tax advice (or even reminders ), Invoices and documents that shows the profit.

[destiniation_london]

Many congratulations Sudsa on getting through the trauma..

I would really really appreciate if you could PM me the template of your avccountants letter...would really be helpful as my interview is due soon

[sudsa]

Hi

Thx. I have just given the accountant's letter below. It is just straight forward and simple.(rather thats what I wanted and as suggested by my friend who was in the same category like me). Actually I had another letter with the 'projected profit' for the current year but did not produce it as it'd raise unnecessary questions. In the end , this letter was all I produced alongwith all the Accounts filed (profit and loss) since the company incorporated.

-------------------------

To Whom it may concern

We can confirm that Mr.XXXXX is the director of the company ABC Ltd (Company No - 123454) registered at ............ UK.

This company was incorporated as a private limited company on dd/mm/yyyy and it continues to trade to date. The accounting period for ABC Ltd runs from dd/mm/yyyy to dd/mm/yyyy. As the authorised accountant for ABC Ltd , we can confirm that all the accounts and tax returns are upto date.

If you have any questions please feel free to contact us

.............................................

Any further help please feel free brother...

[seanjoe]

Hi

Thx. I have just given the accountant's letter below. It is just straight forward and simple.(rather thats what I wanted and as suggested by my friend who was in the same category like me). Actually I had another letter with the 'projected profit' for the current year but did not produce it as it'd raise unnecessary questions. In the end , this letter was all I produced alongwith all the Accounts filed (profit and loss) since the company incorporated.

-------------------------

To Whom it may concern

We can confirm that Mr.XXXXX is the director of the company ABC Ltd (Company No - 123454) registered at ............ UK.

This company was incorporated as a private limited company on dd/mm/yyyy and it continues to trade to date. The accounting period for ABC Ltd runs from dd/mm/yyyy to dd/mm/yyyy. As the authorised accountant for ABC Ltd , we can confirm that all the accounts and tax returns are upto date.

If you have any questions please feel free to contact us

.............................................

Any further help please feel free brother...

From the above post, it has become very clear that if you are a director of a limited company (and for the sake of this forum, we can assume that most director queries are one man or max. 2 people companies - and thus a major shareholder), you are being classed as self-employed; which goes AGAINST what all the seniors and moderators have confirmed thus far.
A very confusing situation for people like me who don't know what their status is for UKBA policy.

[sudsa]

I looked at the other categories in the Homeoffice website

http://www.ind.homeoffice.gov.uk/visas- ... documents/

Although this is for Tier1 , I just had a look at the defintions and various categories. In there you can see

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Self-employed earnings within a business or company structure

If you have worked in a self-employed capacity in your own business or company structure and have chosen to keep your earnings within the business or company, you could send:

    * business or company accounts that meet statutory requirements and show the net profit made for the earnings period claimed; and
    * a letter from your accountant confirming the details in those accounts.

If you are not the sole shareholder of the company you should also provide a letter from your accountant confirming your shareholding and the proportion of net profit before tax to which you are entitled for the earnings period claimed.

which suits me the best.I took a printout of this page but never required to show to the caseworker.Also the very fact that there are only two categories in 10G 1)Employed and 2) Self employed means they are aware of the problem.

[sudsa]

you are being classed as self-employed; which goes AGAINST what all the seniors and moderators have confirmed thus far.
A very confusing situation for people like me who don't know what their status is for UKBA policy.

In this forum , regardless of how they were classified or suggested, I saw most of the people considered them as 'Self-Employed' only...so dont get confused and UKBA must be aware of this

[nitinaggarwalin]

Hi

I am a IT contractor and director of a limited company.(Fall under HSMP JR ILR but 5 yeras) On this forum I see people refer themselves as Self - employed even if they are the directors of limited company. I was told I should select 'employed' if I am a director of the company. This is really confusing which one to choose as there are sucessful/unsucessful in both cases. I have the appointment in two days and highly appreciate if someone has come across similar situations.

1. Am I self employed ? or employed ? Or Can I leave the section and ask the case worker during the PEO interview ?

Code: Select all

10G
Highly skilled migrant If you are applying for indefinite leave to remain on completing 5 years’ continuous stay in the UK under the Highly Skilled Migrant Programme (HSMP) and other appropriate categories, in addition to the relevant documents in 10A, you must provide the following:

If you are employed, document(s) showing your economic activity and your personal earnings during your stay in the UK.

If you are self-employed, you should provide evidence of the progress of the business.

2. I dont have any dividend vouchers or pay slips but has the company accounts filed for all the past 2 years and have the following docs
2.1 Accountant's letter stating the gross and net income of the company and expected profit for the current financial year. (it can be very close to accurate as I have only 1 month left in the period this year).
2.2 Accounts filed by the accountant for past 2 financial years
2.3 Company and personal bank statements
2.4 Invoices for the past 12 months. This will reflect the income of the company each month.
2.5 P45 and P60's for all the years

Will this list be OK considering I need to prove 'I am economically active' under HSMP ILR JR ?

3. What'd I need to fill 5.3 under section 5 ?

Code: Select all

If so, what is your pay each month after income tax and other deductions?

I pay a minimal monthly salary. Then most of my income is taken as dividends in random all year and obviously this is not consistant. I am planning to put

Code: Select all

xyz=(the dividend entitled to me as per my accountant letter 2.1 above/12)+monthly salary 

eventhough I have paid myself more in the past 12 months. Normally my accountant will do reconciliation at the end of the financial year but my company's financial period ends only Oct 31. Will the case worker raise Questions like 'why I have paid myself more money ?' looking at the company's bank statements ?

could someone address this asap plz ?

For Section
5.3 Are you working in the UK?
If so, what is your pay each month
after income tax and other deductions? I am only showing salary after tax

for

Section 5.6

Complete the following table indicating the sources and levels of income as indicated in 5.1 - 5.5 that you and your
partner are relying on to adequately maintain you and any dependants.

I am not sure that I would only want to put salary and no dividends so I am planning to provide this explanation...

As I am a Director of a limited company my earnings comprise of monthly salary and Dividend income from the limited company.

Monthly Dividends shown above have been calculated as an average based on the annual Gross Dividends of XXX GBP for the 12month period considered for this application, proofs of which have been provided along with the application.



What do you guys think...

PLEASE ADVISE