Tier1 extension application: Do dividends count as salary?

Now there is close to one year left in my current Tier-1 general visa.. so the crucial time has arrived when I need to be careful about my effective taxable income because what I earn in these next 12 months will decide whether I will get visa extension or not. To be able to claim minimum required points for extension, I will need to earn an appreciable amount of “effective incomeâ€

1. Tier 1 (General) assessment is based on "gross earnings" and not on "gross taxable earnings".
2. Reading the policy guidance will help.

Thanks Sushdmehta for pointing out. Friends, please read "gross taxable earnings" as "gross earnings" above, and please advise regarding my doubt whether dividends can be considered in gross earnings in Tier1 extension application.

Anybody?

acc wrote: And in addition I can pay myself in the way of dividends. BUT, in that case, for the visa extension purpose, will my earnings in 12 month period be considered only the salary that I pay myself during 12 month period or, would it include the dividends that I pay myself in the period?

Thanks for your kind advice and time

Gross Salary + Gross Divinded will be considered (if your company had enough reserves to pay you dividend)

HSK Accountancy Services wrote:

acc wrote: And in addition I can pay myself in the way of dividends. BUT, in that case, for the visa extension purpose, will my earnings in 12 month period be considered only the salary that I pay myself during 12 month period or, would it include the dividends that I pay myself in the period?

Thanks for your kind advice and time

Gross Salary + Gross Divinded will be considered (if your company had enough reserves to pay you dividend)

Its Gross Salary(before tax) + net dividend(without tax credit)

Karthik, and all,

Can you please clarify whether it is Gross dividend or Net Dividend that counts for Tier1 extension?

Karthik, you wrote Net dividend... and "net" as per my understanding means "after tax deduction".. but you've written in brackets "without tax credit", which I think means "before tax deduction". So, can you please clarify, do you mean gross or net? before tax deduction or after tax deduction?

Thank you mates!

acc wrote:Karthik, and all,

Can you please clarify whether it is Gross dividend or Net Dividend that counts for Tier1 extension?

Karthik, you wrote Net dividend... and "net" as per my understanding means "after tax deduction".. but you've written in brackets "without tax credit", which I think means "before tax deduction". So, can you please clarify, do you mean gross or net? before tax deduction or after tax deduction?

Thank you mates!

Your accountant should be able to help you explaining this:

The 10% tax credit is deducted from ALL dividends paid. Below is how it is calculated.

Net Dividend: £1,000.00
(Amount paid)

Tax Credit : £111.12
(Difference between gross and net dividend)

Gross Dividend: £1,111.12
(Amount paid divided by 9 x 10)

More info can be found at http://www.hmrc.gov.uk/taxon/uk.htm#3

Simple question mates: What's counted for Tier1 extensions: Gross dividend or net dividend?
(I know the meaning of gross and net.. only want to confirm what's counted for Tier1: Gross dividend or net dividend?)

Thanks

I mean, HSK above says gross dividend, while karthik above says net dividend. Which one is correct? Anyone?

gross dividend r counted for visa purpose

only net dividend is considered as earnings

IF U dont know correct answers please dont mislead people

IF U dont know correct answers please dont mislead people

Gross dividend r considered by HO as well as Taxman

Hi

I am on Tier 1 General and have 6 months left for the expiry. I am looking to apply for the renewal of the Tier 1 and was looking at the forum to find the points requirement.

However, I am confused since the points calculator at a few sites like workpermit.com etc state 75 points as min points needed for renewal and UKBA site tells 80 points.

My major issue is with the points I get for salary. My Gross salary for 12 months would be 49,000 GBP which as per UKBA calculator gives me 25 points and take my total score to 75; hence disqualifies me.

If i see the workpermit site, it gives me more points and makes me eligible.

can someone help please.. which is the accurate calculator

hello Gurus in the house
Please i need your advice; which do you think is better for tax purposes
Being Self employed or having a limited company?

LTD company

1 Better presentation of business
2. transfer of money from some countries
3 when net profit > 8000 always go for ltd

Thanks for your prompt reply
i'm a locum heath worker and using self employed but was just looking at the best, clearest and easiest way of going about the extension which comes up in about 10months.
Your help good members of this forum will be highly appreciated