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Employment question about Director

A section for posts relating to applications for Naturalisation or Registration as a British Citizen. Naturalisation

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jimmykahn28
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Employment question about Director

Post by jimmykahn28 » Mon Apr 11, 2016 12:31 pm

I am applying for naturalisation under 5 years + 1 year ILR category. I am employed for a company and have been receiving salary via PAYE but I am also a director of the same company. There is a question (1.46) on the form which ask Are you: An employee?, A business partner?, Self-employed?, and a director?. I would like to know which option do I need to select, just an employee or both employee and director?

Thank you for your help in advance.
Regards

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Casa
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Re: Employment question about Director

Post by Casa » Mon Apr 11, 2016 12:36 pm

Well as you say in your post that you are an employee and also a director of the company...that's what you should put. :|
(Casa, not CR001)
Please don't send me PMs asking for immigration advice on posts that are on the open forum. If I haven't responded there, it's because I don't have the answer. I'm a moderator, not a legal professional.

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Mon Apr 11, 2016 12:42 pm

Thank you for your reply.

With regards to the documents, should I just submit the latest P60 or last 6 years' P60? I have filed Self Assessment Tax returns for the last year. So should I submit statement of account for the last year as well as P60s?

Please also note that I had not been filing Self Assessment returns (before the latest one) even though I was a director and employed by the company because my tax was deducted at source via PAYE and there were no dividends to be paid. Does that affect my application?

Any help would be appreciated.

tripping
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Re: Employment question about Director

Post by tripping » Mon Apr 11, 2016 3:00 pm

jimmykahn28 wrote:I am applying for naturalisation under 5 years + 1 year ILR category. I am employed for a company and have been receiving salary via PAYE but I am also a director of the same company. There is a question (1.46) on the form which ask Are you: An employee?, A business partner?, Self-employed?, and a director?. I would like to know which option do I need to select, just an employee or both employee and director?

Thank you for your help in advance.
Regards
I put down Director on the form when I did it, not Director and Employee.

Regarding SA returns, technically they are asking for the most current tax return which you already have (correct me if IM wrong if rules changed on this bit since last year) so I think you should be alright (correct me if Im wrong experts). You should by definition have lodged personal tax returns anyway in the past but dont think that should affect your application.

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Tue Apr 12, 2016 12:36 pm

Thank you for your reply trippings!

Can I not just submit last P60 as I am not self employed (employed by a company and a director of the same limited company) and my understanding is that we need to submit statement of accounts if we are self employed? My concern is if I submit latest statement of acount then they may ask for earlier accounts whereas all my previous and latest earnings & tax were paid via PAYE.

Can any senior member (expert) also shed some light on tripping's comments please?

Thank you.

Wanderer
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Re: Employment question about Director

Post by Wanderer » Tue Apr 12, 2016 12:44 pm

jimmykahn28 wrote:Thank you for your reply.

With regards to the documents, should I just submit the latest P60 or last 6 years' P60? I have filed Self Assessment Tax returns for the last year. So should I submit statement of account for the last year as well as P60s?

Please also note that I had not been filing Self Assessment returns (before the latest one) even though I was a director and employed by the company because my tax was deducted at source via PAYE and there were no dividends to be paid. Does that affect my application?

Any help would be appreciated.
Company Directors must fill in self-assessment;

From HMRC site;
You’ll need to send a tax return if, in the last tax year:
you were a company director - unless it was for a non-profit organisation (eg a charity) and you didn’t get any pay or benefits, like a company car
An chéad stad eile Stáisiún Uí Chonghaile....

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Tue Apr 12, 2016 1:50 pm

What is the best foward way for me now as I had not submitted Self assessments before the latest one, even though I have paid all my taxes via PAYE so no tax avoidance issue here? I just stupidly thought that since I didn't have any other income so I didn't need to file self assessments!

1) File missing Self Assessments and then apply but this may be seen by home office as deceptive.
2) Apply and submit latest Statement of accounts and select Director as well as Employed. And provide Paye reference number and NINO and UTR and just hope that the previous self assessments are not checked.
3) File missing Self assessment, Wait for 4 years while filing Self assessment every year then apply for naturalisation as my permanent residence does't expire until 2020.

BTW, what happens if someone does not apply for naturalisation and permanent residence (bio metric) expires, do we need to apply for the same visa again or just bio metric card and what is the procedure for that?

Thank you.

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Tue Apr 12, 2016 3:57 pm

4) Should I resign as a director and just tick employment and then submit latest P60.

Please let me know the best possible option.

Thank you

kankerot
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Re: Employment question about Director

Post by kankerot » Tue Apr 12, 2016 4:58 pm

So you are a contractor trying to reduce tax income by becoming a ltd business and then paying yourself as an employee.

Directors need to file self assessment unless its below a certain threshold. Also so did you recieve disbursements such as dividends, did you claim expenses etc?

You are more than just an employee as you are also a director.

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Tue Apr 12, 2016 5:47 pm

No I am not a contractor. I started working for the company as an employee (it's a small company with 9 employees) and then after a few years I bought shares in the business and also became a director. As I said earlier, I naively thought that since I did not have any other income so I didn't need to submit Self Assessment. I didn't receive any dividends or major expenses. There were minor expenses but those were paid directly from the company's credit card.

Please advise a possible course of action from the above list or any other suitable action.

Thanks

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Tue Apr 12, 2016 5:54 pm

P.S. The expenses were for buying flight tickets to meet up clients. In any given year, the expenses never exceeded £300 pounds and in last 6 years the total would be less than £600. And they were paid directly from the company credit card and receipts submitted to company's accountant as part of the company's documentation.

ToneGen
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Re: Employment question about Director

Post by ToneGen » Tue Apr 12, 2016 6:04 pm

For naturalisation application as a director of the limited company do we have to submit Tax related documents? IF yes, what are all?
Can someone please point me where is this asked in the policy guidelines?

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Tue Apr 12, 2016 8:32 pm

I don't have reference to the policy guide, I was told by NCS to bring latest P60 or latest statement of account summary if self employed.

ToneGen
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Re: Employment question about Director

Post by ToneGen » Wed Apr 13, 2016 7:32 am

I don't have reference to the policy guide, I was told by NCS to bring latest P60 or latest statement of account summary if self employed.
Thank you Jimmykahn28..
IF you are Director of a limited company and draw salary and dividends you'll be an employee right? not a self employee.
I was never asked for these details at NCS and have submitted nothing related to tax. Would that be an issue?
Please somebody experienced guide me in this matter..

Thank You..

Hola2015
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Re: Employment question about Director

Post by Hola2015 » Wed Apr 13, 2016 12:37 pm

Based on the current AN form, if you are self-employed; see Section 7, Page 31
"SECTION 7 Evidence of tax for self-employed applicants only
The most recent HM Revenue & Customs Self Assessment Statement of Account"

kankerot
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Re: Employment question about Director

Post by kankerot » Wed Apr 13, 2016 1:42 pm

The ltd company you are a director of is a legal entity in itself. It employs you. So you are an employee of the ltd company as well as being a director of the ltd company. So the ltd company enters into contracts not you as an employee.

A self employed person is entering into work under his own name as himself - he is the legal entity entering into contracts.

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Wed Apr 13, 2016 4:06 pm

ToneGen wrote:
I don't have reference to the policy guide, I was told by NCS to bring latest P60 or latest statement of account summary if self employed.
Thank you Jimmykahn28..
IF you are Director of a limited company and draw salary and dividends you'll be an employee right? not a self employee.
I was never asked for these details at NCS and have submitted nothing related to tax. Would that be an issue?
Please somebody experienced guide me in this matter..

Thank You..
What options did you select with regards to Question 1.46? Did you select both Employed and Director or just employed? What information did you enter for tax reference/address (paye reference number, UTR, National Insurance No)?

jimmykahn28
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Re: Employment question about Director

Post by jimmykahn28 » Wed Apr 13, 2016 4:13 pm

jimmykahn28 wrote:What is the best foward way for me now as I had not submitted Self assessments before the latest one, even though I have paid all my taxes via PAYE so no tax avoidance issue here? I just stupidly thought that since I didn't have any other income so I didn't need to file self assessments!

1) File missing Self Assessments and then apply but this may be seen by home office as deceptive.
2) Apply and submit latest Statement of accounts and select Director as well as Employed. And provide Paye reference number and NINO and UTR and just hope that the previous self assessments are not checked.
3) File missing Self assessment, Wait for 4 years while filing Self assessment every year then apply for naturalisation as my permanent residence does't expire until 2020.

BTW, what happens if someone does not apply for naturalisation and permanent residence (bio metric) expires, do we need to apply for the same visa again or just bio metric card and what is the procedure for that?

Thank you.
jimmykahn28 wrote:4) Should I resign as a director and just tick employment and then submit latest P60.

Please let me know the best possible option.

Thank you
jimmykahn28 wrote:No I am not a contractor. I started working for the company as an employee (it's a small company with 9 employees) and then after a few years I bought shares in the business and also became a director. As I said earlier, I naively thought that since I did not have any other income so I didn't need to submit Self Assessment. I didn't receive any dividends or major expenses. There were minor expenses but those were paid directly from the company's credit card.

Please advise a possible course of action from the above list or any other suitable action.

Thanks
jimmykahn28 wrote:P.S. The expenses were for buying flight tickets to meet up clients. In any given year, the expenses never exceeded £300 pounds and in last 6 years the total would be less than £600. And they were paid directly from the company credit card and receipts submitted to company's accountant as part of the company's documentation.
Can any expert guide me please? Should I wait and apply for naturalisation just before my BRP expires as then I would have submitted 6 years worth of returns? Any help would be highly appreciated!

ToneGen
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Re: Employment question about Director

Post by ToneGen » Wed Apr 13, 2016 6:16 pm

What options did you select with regards to Question 1.46? Did you select both Employed and Director or just employed? What information did you enter for tax reference/address (paye reference number, UTR, National Insurance No)?
Hi Jimmykahn28,

I have selected both as employee and Director and have provided PAYE ref number & UTR Number.
And in address of the Comapny I've given home address where the business is registered.

ToneGen
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Re: Employment question about Director

Post by ToneGen » Thu Apr 14, 2016 5:35 pm

IF you are Director of a limited company and draw salary and dividends you'll be an employee right? not a self employee.
I was never asked for these details at NCS and have submitted nothing related to tax. Would that be an issue?
Please somebody experienced guide me in this matter..
I have selected both as employee and Director and have provided PAYE ref number & UTR Number.
And in address of the Comapny I've given home address where the business is registered.
Experts please help. What would be the consequences if I was supposed to produce Tax Documents and I didnt?

Thank You

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