can the money benefited from VAT FLAT RATE be used as income

[bal001]

Hi,

I have a limited company and I am the director of it. I have not made much revenue. I have a registered for flat rate scheme. my flat rate scheme is 14.5 %.

I want to know if the money benefited from VAT flat rate be extracted as salary or dividend that can be shown to UKBA.

Example :

My company makes revenue 2400 pounds including VAT

As I am registered for flat rate I pay only 348 pounds to HMRC and NOT 400 pounds

so the remaining money is 2052 pounds and NOT 2000 pounds.

so can I extract 2052 pounds as salary/dividend OR should I extract only 2000 pounds as salary/dividend ?

I am worried because HMRC says that 52 pounds benefit I get from flat rate scheme is actually like expense (like an average expense that company may incur)

so since this 52 pounds is like expense, can i extract it as salary/dividend ?

PLEASE HELP ME I NEED TO APPLY FOR VISA IN A FEW DAYS

THANKS
Bam

[coolwind]

It should not be a problem as long as you have enough balance in your business account to pay corporation tax. I would suggest to consult your accountant about the maximum dividends you can withdraw.

[bal001]

Thanks. I have one more doubt. when you say maximum dividend, are you saying that is there a restriction in the maximum dividend I can show to UKBA

or

are you saying that maximum dividend I can possibly take from my revenue after paying corporation tax and expenses ?

one more question.

I want to be absolutely sure on whether UKBA considers Net dividend or Gross dividend. This is not clear in the Tier 1 guidance. There are few posts in this site. However I want to be ABSOLUTELY sure, as I income is not high

Thanks
bam

[coolwind]

Your second point about maximum dividends is correct:
"maximum dividend I can possibly take from my revenue after paying corporation tax and expenses ".

As far as your second question is concerned, I don't have a definite answer.
But, I would suggest to have enough net dividends to fulfill the earning requirements for your application.

[bubin123]

It's gross dividend and gross salary which are counted towards previous earning...

[sparsh]

It's gross dividend and gross salary which are counted towards previous earning...

bubin123 where did you get this info from? It's Net Dividends and Gross salary,

[bubin123]

I renewed my visa this January... With gross dividend & gross salary based previous earning...
The same has been discussed on many threads in this forum...