Previous Earning - Contractor (Private Limited Company)

Dear Members,

I am a contractor and looking forward to renew my HSMP in April 2009. I was granted HSMP in April 2007. I am a contractor and running my own private limited company as a Director of the company.In a view for my HSMP renewal I have been paying myself a gross salary of £3333.33 per month in order to meet 40K at the time of renewal. The same salary is reflected in the payslips which I am receiving from my company and the net monthly salary (as per the payslip) in bank statement.

Since I am director of my company:

1. Do I need to provide any other Income Proof to prove my pervious earning?
2. Can I show myself as an employee (and NOT director) of the company(my own) and present payslip+bank statement as a proof or earning; as director is also an employee of the company.

I would appreciate your response on the same. Also members who has the done same please reply.

Thanks
Chetan

Hi ChetanOjha,

You can of course claim to be an Employed (even as a Director), if your salary is administered under PAYE system.
You should be alright with Salary Slip+Bank Statements.
If you receive Dividend from your company you can include that as well.

You might be better-off providing a letter from your accountant confirming your share-holding in the company.

NNJ10

Hi NNJ10,

Thanks for prompt reply. Yes my salary is administered under PAYE system. Regarding letter from accountant:

1. Do the letter can also include details regarding my gross/net salary or just the share holding?
2. Does the letter needs to include any income figures like Profit/Divided/Invoice amount etc?

Thanks,
Chetan Ojha

Chetan Ojha Wrote:

1. Do the letter can also include details regarding my gross/net salary or just the share holding?

If you are claiming to be Employee of your own company, then there is no need to get a letter from accountant. The accountant letter is useful, if you claim to be self employed.

2. Does the letter needs to include any income figures like Profit/Divided/Invoice amount etc?

Not required. This is also applicable in case of self employed.

Great. Thanks NNJ10.

Hi.

I have read in people reply that in pvt ltd company as a director you are also employed for the compmany. I want to ask that i have registered pvt ltd company and my account told me i will take Dividends only from the money comes in my company account.
for example

I'm getting 2000 pounds this month so he said take 1500 to your personal account . this will be my dividend and i have to pay tax on 1500.

In this way i'm director of the company and this 1500 is not my salary. IS this acceptable in earning category ?

Can any one help and describe this in more detail how it works exactly. I will be thankful to you..

Regards,

FZ

Hi Chetan,

I am in exactly similar position as yours. It would be great to be in touch.

Please send me your email id / mobile.

Thanks

Hi Chetan,
I have the same circumstance as you. As I don't have an accountant managing my limited company, i also don't have any payslips. Can anyone tell me whether providing:
- a P60 for the claiming period is sufficient as evidence for my salary and
- dividend certificates signed by my secretary to prove dividends paid and
- bank statements sufficient?
thanks

I have the same circumstance as you. As I don't have an accountant managing my limited company, i also don't have any payslips. Can anyone tell me whether providing:
- a P60 for the claiming period is sufficient as evidence for my salary and
- dividend certificates signed by my secretary to prove dividends paid and
- bank statements sufficient?
thanks

As per the guidelines, you should be providing evidence from two different sources to corroborate the earnings.

-- Dividend Vouchers can be one (I am sure you have not claimed over £25K of dividend). For e.g. if you have receiuved £40k in dividends(which I doubt) then you can show dividend vouchers.
-- Bank Statement should reflect your earning. (This should show activity related to your earning as well).

I far as guidance note is concerned it should work as you are providing required evidence. Better to provide proper evidence as case worker do not grant benefit of doubt.