Ltd Company Contractor (Tier 1 General)

Hi,

I am an Engineering contractor operating out of my limited company, owned by me & acting as a Director
with my wife being Company Secretary.
I pay myself & my wife net salary and net dividend every week which gets reflected in our personal bank stats.

I have few queries regarding the same.

1. When I apply for Tier 1 (General) extension should I specify as Employed or Self-employed?
I believe I should specify 'Employed' since I am employed as a Director for my company.
There is always a grey area regarding employed or self employed for Ltd company contractors and I couldn't find a direct
answer to this on the forum.

2. I am in receipt of following docs. What documents do I need over & above I have specified below?
Payslips (weekly)
Personal bank stats for me & my wife
Company bank stats in companies name
Original copy of Agency contract with Client
Original copy of Invoice from agency (weekly)
Accountant Letter

Hope someone replies.

Thanks

I guess self employeed

You are employee as per HMRC agreed but UKBA would treat you as self employeed coz the set of documents that you need to provide is the one for self employed ones..

i got a similar case and i mentioned self employed and got extended !


Good Luck !

Hi Muditmalhotra

Thanks for your response. That is contradictory to what I have read on the forum. People had more trouble specifying 'Self Employed' with UKBA asking for more documents.

May be not everyone were as fortunate as you were. I guess it again depends on which PEO you attend.
Was there any other document you provided apart from the one I mentioned above?

Thanks

hi

trouble? oops, can you please tell me what all did they face ? coz afaik thats the simplest way to go

here is list of docs i gave
a. Dividend Vouchers attested by accountant for the dividends received.
b. Personal Bank statement reflecting dividend credit for the above mentioned dividends. (dividend credit transactions highlighted)
c. Business bank statements for my company showing dividend pay-outs and remittance received against invoices raised.
d. Letter from Accountant explaining my working status in my company and confirming the above mentioned dividend earnings.
e. Invoices raised in the period claimed
f. A copy of current contract with the agency
g. Company Accounts
h. Copy of Company incorporation Certificate.
i. Copy of Company VAT registration Certificate

One last query for scoring points on previous earnings. I know it's daft to query this but just to make things more clear.
When claiming points under previous earnings will the points be awarded based on joint earnings for both the shareholders or is it just the earnings of main applicant (Director). Since me & my spouse work for same Ltd company I believe the points would always be awarded on our joint previous earnings. Joint earnings would help us to score more points & put us in a better position.

Thanks

No, not joint earnings.

Points will be awarded for the total amount of salary and dividend that you withdraw from your company

For ex if ur joint earnings are 60k
And ur combined salary and dividend is 30k

U will b awarded points for 30k not 60k
U will need a letter from accountant explaining this

Also, ur earnings must be in accordance with ur role in company

So if ur daily rate is £80 and ur wife's is £500 u might get in trouble if u claim half of ur company's revenue

Hi
I guess you have misread. Read my first comment. What I meant by joint earnings was my wife being share holder & company secretary for my Ltd company. I pay her (Salary+Dividends) & I draw (Salary+Dividend+Expenses). We both are drawing salary from same source with different dividend ratios but being HMRC compliant. Now leaving my expenses part aside can I not claim points in 'Previous Earnings' for (salary+dividends) for both since she being my spouse.
Adding spouse as share holder in your Ltd company is most efficient way of tax saving.

Thanks

what do u mean exactly here ?

Anything that you give to your wife be it dividend on salary, can not be counted as your income and hence you will not get points for that.

UKBA will not award you points for wat amount u bring into you company account rather what you withdraw from you company account ..

are we still on different page ?

We are just going around in circles. Your comment is not clear to me.
To make it more simpler basically what I'm saying is I believe I should be able to claim points under Previous Earning for myself & my wife's earning.
e.g My earning component is (a+b) & wife's earning component is (c+d)
So total earning for us is (a+b+c+d) & not for company. Companies earning is retained profits.
Does UKBA allow you to claim points for earning (a+b+c+d) OR does it have to be only (a+b).

Salary components: a, c
Dividends: b,d

I hope this makes it more clear!

Exactly going around in Circles !

same question different words will not have a different answer .. will it ?


Considering u are main applicant and your wife is dependent.. or vice versa, how are you expecting your wife's earning to get you points ?

A+B will get you points .. !

muditmalhotra wrote:Exactly going around in Circles !

same question different words will not have a different answer .. will it ?


Considering u are main applicant and your wife is dependent.. or vice versa, how are you expecting your wife's earning to get you points ?

A+B will get you points .. !

WHS

Hi Devil81,

Have you got your visa extended?

Regards

Hi uzairbaig,

I haven't applied for extension as yet. Will do it later this year or sometime next year before 6th April

Regards

No rush...........Eventually we will all get there........mission ILR