HSMP Extension - Contractor - Any one help please

[fahadz1]

Hi All

I have couple of questions as I'm not an accountant and i need my bros sincere advice. I am running a Limited company, I'm the only director and shareholder. I got a contract for software development which i developed in home country and get payments in UK bank account. My questions are..

Suppose i get 1000 pounds - My accountant said transfer 400 from business account to my personal account. that will be my dividend.
So Home office HSMP team will consider 1000 as my gross income or 400 ?

Should i tell home office that in this 1000 , 400 is my profit and rest i paid to programmers. Is this right ? or i just show all the work done is by me ?

Please any one can describe this in detail as i have only 4 months left. I can call u to discuss at ur convenence. Please give me ur number or email.

I will be thanksful to you.

Regards,

Fahad

[MyHSMPApplication]

Hi Fahad,

From your description above I could figure out the following


You got a contract for SW in your home country for which you were paid 1000 GBP per month for some x months.

Of the 1000 GBP you took 400 GBP in your personal account as dividends and the rest 600 GBP were distributed as salary for programmers.

If the above situation is indeed correct, then

a) The home office will only consider 400 GBP + the tax credit on the the dividends as your pay.
b) they will not consider the 600 GBP as because they have been spent by your company as salary to your programmers.

If you require further clarification PM me, we can take the discussion further.

Cheers
PG

[saayinla]

Hi Fahad,

From your description above I could figure out the following


You got a contract for SW in your home country for which you were paid 1000 GBP per month for some x months.

Of the 1000 GBP you took 400 GBP in your personal account as dividends and the rest 600 GBP were distributed as salary for programmers.

If the above situation is indeed correct, then

a) The home office will only consider 400 GBP + the tax credit on the the dividends as your pay.
b) they will not consider the 600 GBP as because they have been spent by your company as salary to your programmers.

If you require further clarification PM me, we can take the discussion further.

Cheers
PG

I have a similar question but dont want to open a new thread is it okay to Pm you as well.

Cheers