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Director's salary

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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jafersadeq
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Posts: 681
Joined: Sat Jun 20, 2015 1:14 am
Location: LONDON

Director's salary

Post by jafersadeq » Thu Sep 22, 2016 7:28 pm

Dear Gurus,
Please advise me about my situation: T1-E
Year 2016 , Director's Loan (Investment) about £275,000 (more than 200k). No profit (loss), and I am taking salary every month about £,1000.
Is it ok if I take a salary and the company in loss?

Thanks,

noajthan
Moderator
Posts: 14911
Joined: Sat Oct 25, 2014 11:31 am
Location: UK

Re: Director's salary

Post by noajthan » Thu Sep 22, 2016 8:27 pm

Not if its eating into your 'investment'.
All that is gold does not glitter; Not all those who wander are lost. E&OE.

jafersadeq
Senior Member
Posts: 681
Joined: Sat Jun 20, 2015 1:14 am
Location: LONDON

Re: Director's salary

Post by jafersadeq » Thu Sep 22, 2016 8:33 pm

noajthan wrote:Not if its eating into your 'investment'.
Dear noajthan,
Many thanks for your reply,
for three years I spend £39,000, so the investment will be £275k-39k=236k
My question is: Can I take a salary if the company in loss?
Please advise

awan905
Member of Standing
Posts: 274
Joined: Sat Sep 17, 2016 7:48 am

Re: Director's salary

Post by awan905 » Thu Sep 22, 2016 8:43 pm

jafersadeq wrote:
noajthan wrote:Not if its eating into your 'investment'.
Dear noajthan,
Many thanks for your reply,
for three years I spend £39,000, so the investment will be £275k-39k=236k
My question is: Can I take a salary if the company in loss?
Please advise
I believe you are on 200k, as long as you are meeting the threshold of 200k then there should not be any issue.

jafersadeq
Senior Member
Posts: 681
Joined: Sat Jun 20, 2015 1:14 am
Location: LONDON

Re: Director's salary

Post by jafersadeq » Thu Sep 22, 2016 9:10 pm

awan905 wrote:
jafersadeq wrote:
noajthan wrote:Not if its eating into your 'investment'.
Dear noajthan,
Many thanks for your reply,
for three years I spend £39,000, so the investment will be £275k-39k=236k
My question is: Can I take a salary if the company in loss?
Please advise
I believe you are on 200k, as long as you are meeting the threshold of 200k then there should not be any issue.
Yes, I am on 200k, I have two companies, I take the salary from one of them,
The DL is for £275k, but I take 13k a year as a salary.. last year I had a profit, but this year in loss.
Please confirm your opinion.
Thanks,

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zimba
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Re: Director's salary

Post by zimba » Fri Sep 23, 2016 8:40 am

If you expenses are more than your turnover, you should not pay yourself ANY salary.
If you expenses are less than your turnover, your salary can be the difference.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

awan905
Member of Standing
Posts: 274
Joined: Sat Sep 17, 2016 7:48 am

Re: Director's salary

Post by awan905 » Fri Sep 23, 2016 9:22 am

Yes, I am on 200k, I have two companies, I take the salary from one of them,
The DL is for £275k, but I take 13k a year as a salary.. last year I had a profit, but this year in loss.
Please confirm your opinion.
Thanks,[/quote]

In your visa your minimum requirement is 200k which you are fulfilling even after pay.However what is the loss for each year, because that needs to be consider. Do you have the last two years annual accounts? what is the DL there, Cash, current assets, fixed assets, debtors and creditors?

sm12
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Joined: Thu Jan 31, 2013 4:14 am

Re: Director's salary

Post by sm12 » Sat Sep 24, 2016 9:33 pm

zimba88 wrote:If you expenses are more than your turnover, you should not pay yourself ANY salary.
If you expenses are less than your turnover, your salary can be the difference.

But from the point of view of ILR, won't it be a problem when they see your self-assessment documents and find out you have no salary or income?

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zimba
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Re: Director's salary

Post by zimba » Mon Sep 26, 2016 1:58 pm

No, why should it be a problem ?? There is NO salary requirement for ILR under Tier 1E route. You should continue to submit SA to HMRC as required by the law.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

sm12
Diamond Member
Posts: 1069
Joined: Thu Jan 31, 2013 4:14 am

Re: Director's salary

Post by sm12 » Fri Jan 27, 2017 2:49 am

Sorry for bumping this old thread again, but I had a follow up question.

If a person is not drawing any salary from the business, is it advised that he or she shows maintenance funds like for extension?
Also, I assume that one must say Yes for the question about whether one is working in the UK under section 5 of ILR form?

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