Reg: Showing Dividend as Income for Tier 1 Extension

[Sarva81]

Hi,

My Wife is on Tier 1 and her VISA extension coming in Mid of 2012,I'm (husband) doing contracting in UK with own Limited company setup

My Wife is working on a Permanent role with a UK based company, and her salary is looking to be not enough for Tier 1 Extension as she took more leaves on 2011.

My Query is, If i add my wife as Dividend Share holder(say 50%) in my limited company, Can the dividend amount she takes from my limited company be shown as one of another income along with her salary income(from her company) while applying for Tier 1 Extension


Pls clarify on this.


Cheers
Sarva

[AccountantMatthew]

I'm not speaking here in any capacity as your average UKBA worker so I would get some advice from your visa agent. However .....

UKBA state that (Appendix A para 23):

23. Earnings include, but are not limited to:

....

(f) dividends paid by a company in which the applicant is active in the day-to-day management, or where the applicant receives the dividend as part or all of their remuneration package,

and (Appendix A para 26):

26. Earnings do not include unearned sources of income, such as:

....

(c) dividends, unless paid by a company in which the applicant is active in the day-to-day management, or unless the applicant receives the dividend as part or all of their remuneration package

So assess what role your wife plays in your company and, as mentioned, check with your agent or, indeed, a solicitor.

[Sarva81]

Thanks Matt for that, ill take to a solicitor and confirm this.

Thanks a lot


Cheers
Sarva

[Sushil-ACCA]

Hi,

My Wife is on Tier 1 and her VISA extension coming in Mid of 2012,I'm (husband) doing contracting in UK with own Limited company setup

My Wife is working on a Permanent role with a UK based company, and her salary is looking to be not enough for Tier 1 Extension as she took more leaves on 2011.

My Query is, If i add my wife as Dividend Share holder(say 50%) in my limited company, Can the dividend amount she takes from my limited company be shown as one of another income along with her salary income(from her company) while applying for Tier 1 Extension


Pls clarify on this.


Cheers
Sarva

to get benifit of 50 % PBT she need to prove that she is taking active part in day to day running of company , by way of company sec

etc