Regarding Tier1 extension through limited company

Hello Gurus,

Need some help to clarify some doubts on Tier Extension which is due in Feb 2012. I'm a contractor working through a limited company. Monthly i take a minimum salary of 650 and dividends every Quarterly

Now i have to show my income for the period starting Feb 2011 to Jan 2012.

my salary is 7800 for the period Feb 2011 to Jan 2011.

The rest of the income which is 23 K i want to show through dividends.

As i take the quarterly dividends

for ex

date in bank statement dividend Amt

08 Feb 2011 -------->4000 ----Invoices are dated to dec2010 and jan2011

22 May 2011--------->5000

01 Sep 2011--------->5000

25 Nov 2011--------->5000

12 Feb 2011---------->5000

My question is regarding the 1st dividend payment. this payment is for the work which i have done for the period Nov 2010 ,Dec 2010, Jan2011 which is not in the last 12 month requirement. will this becomes a problem?

will HO considers 08 Feb 2011 -------->4000 payment as my income for last 12 months?

please let me know if im not clear in explaining the problem.

Any suggestions would be a great help.

Thanks
Keka

any help please

Any comments sushdmehta?


please let me know if any one want more information

Thanks
Keka

From a tax point of view (and I'm assuming the UKBA point of view too) the trigger point for dividend income is when it is received.

Therefore the £4,000 received would be included as income on Feb 8th.

Dividends are an appropriation of company accumulated reserves; provided there are sufficient distributable reserves it does not matter when they are declared and paid.

keka wrote:Hello Gurus,

Need some help to clarify some doubts on Tier Extension which is due in Feb 2012. I'm a contractor working through a limited company. Monthly i take a minimum salary of 650 and dividends every Quarterly

Now i have to show my income for the period starting Feb 2011 to Jan 2012.

my salary is 7800 for the period Feb 2011 to Jan 2011.

The rest of the income which is 23 K i want to show through dividends.

As i take the quarterly dividends

for ex

date in bank statement dividend Amt

08 Feb 2011 -------->4000 ----Invoices are dated to dec2010 and jan2011

22 May 2011--------->5000

01 Sep 2011--------->5000

25 Nov 2011--------->5000

12 Feb 2011---------->5000

My question is regarding the 1st dividend payment. this payment is for the work which i have done for the period Nov 2010 ,Dec 2010, Jan2011 which is not in the last 12 month requirement. will this becomes a problem?

will HO considers 08 Feb 2011 -------->4000 payment as my income for last 12 months?

please let me know if im not clear in explaining the problem.

Any suggestions would be a great help.

Thanks
Keka

dividend dates r not important

dividend for which ACCOUTNING period is important so any dividiend paid of

Feb 11 to JAN 11 accouting period will be considered

Thank you very much