Tier 1 Extension Limited Company invoice payments

Hi,

I'm just preparing docs for my Tier 1 exten application in april first week, I have one question regarding invoice payments for limited company services. Actually i provided services in months prior to period considered for previous earnings for example I'm considering earning starting from April 01, 2012 to March 31, 2012 but I provided my services in january, 2012 and february 2012 and raised invoices at that time but I was actually paid in April, 2012.

My question is will still be earnings considered as they are paid in April but invoices raised in January, Feb?

Thanks

are you going to show income from salary and dividends?

bubin123 wrote:are you going to show income from salary and dividends?

Yes from Salary and dividends

shedy789 wrote:

bubin123 wrote:are you going to show income from salary and dividends?

Yes from Salary and dividends

please comment further on this if this is fine to have invoices for earlier dates and payment made in the period considered for previous earnings.

Shedy..it's the invoice raising date which is counted in the period and not the invoice payment date (told by my accountant). It's better to submit invoices summaries (by accountant) and actual invoices if you have (case worker explicitly asked for these from me even though I am also on salary + dividends as director of limited company).

So you should include all the invoices that are raised from April 2012 till March 2013. If the invoices you have raised recently are not paid (like invoices in March 2013) then too you can include it in total invoices. Remember HMRC taxes you VAT and other things based on invoice raise date and hence everything should be considered from invoice date.

Hi,

shedy789: If you own your ltd company all that matters is your salary + Dividends fall in the period you claim as earnings. It does not matter when your money was made.

However if you are self-employed then:

94.
If an applicant is self-employed and has chosen to retain the profits within the business, his/her earnings are limited to the share of the business’s net profits to which he/she is entitled. The appropriate proportion of the net profit of the business (that is, after tax and outgoings) can therefore be counted as the gross salary of the applicant.
We will only consider profits made during the appropriate 12-month earnings period for which the applicant is claiming.

Those you are applying after 5th Apr 2013...I don't know how following immigration rule change going to impact you

7.6 The Tier 1 (General) category, for highly skilled workers, is now closed to new applicants but remains open for extension and settlement applications. A small change is being made to this category in response to the introduction of the Government’s new “employee-owner” initiative. The change confirms that if applicants exchange some of their UK employment rights for shares as an employee-owner, the value of those shares will not be included when calculating the points awarded for an applicant’s previous earnings.

You can find the details of above in below URL...which was publised on 14th Mar 2013...Does above change mean we cannot claim points for dividend or net profit? I am not trying to set off a panic button..but just want to share with everybody so that we can reason out the meaning of it....

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary

Yash,

Nothing to worry all it says is that they count the physical value of the share that you own for calculating your earnings. So the reg dividends/net earnings are all the same and still applicable for earnings calculation.

@tier1_aspirant_del: HMRC consider VAT and other taxes based on invoice payment date, not just based on invoice raise date.
In other words, if you raised invoice and not paid yet or never get paid, no VAT or taxes are due on the invoiced amount....