ILR Success at PSC - Limited Company Director

[kanswam]

All
Here are some details regarding my successful application for the ILR as a Limited Company Director at the Sheffield PSC.

Tier 1 General, Original issue - April 2009
First entry to UK - June 2009 and then left after a month. It was just a reconnaissance trip
Next entry to UK - October 2010
Even though I completed 5 years in October 2015, I couldn't apply because I was not working for best part of 2015 hence had to wait till now to apply.

The whole process from entry to approval took close to 2.5 hours and I wasn't called into clarify anything on my application.

When I came into the UK, I had a full time job and then worked through an umbrella company through the tax period 2011-12. From tax period 2012 - present, it has been as a Limited Company Director. Based on what I read on this forum, I realised I had no idea about my tax status with HMRC hence applied for SA302 to start with. When I received it, there were 2 surprises for me -
1. It listed the period 2010-11 when I was actually in employment and don't recall ever filing a SA
2. It was missing the 2011-12 period. When I enquired about this missing period, HMRC mentioned that it was under the PAYE method for that year. So, I asked them to send me that statement for that year.

I did not attach the SA302 or PAYE statement with my application, but I was given a questionnaire after they entered my case details into the system. The questionnaire details are as below. Almost ad verbatim -

1. Have you worked as Self Employed or worked as the Director or shareholder of a Limited company? If answer is yes, go to question 2 or return questionnaire to the desk officer
2. What is/was the nature of your business as a Self Employed person - Sole Trader, Contractor, Limited Company (Director or Shareholder), Other (please specify)
3. Confirm the financial years in which you were registered as Self employed in the UK? years started from 2009-10 to 2014-15
4.For financial years registered as self-employed, please confirm years for which a Self-assessment tax return was submitted to HMRC (This does not include a Company Tax return for a limited company) - again years started from 2009-10 to 2014-15
5. Please specify type of business you engaged in to generate income
6. Did you use an accountant to assist in submitted your SA tax returns to HMRC? If yes, go to question 7
7. Please provide name of accountants used
8. Confirm type of documents used in order to prepare your SA tax returns - choices were Invoice, Bank Statements, Dividend Vouchers, Payslips, Others
9. Are you satisfied that the SA tax returns submitted to HMRC accurately reflected your income? If not, why not and what further action have to taken to address it?
10 Any other comments

Along with this completed questionnaire, I attached the SA302 and PAYE statements from HMRC.

As mentioned before, there were no clarifications sought by the Case Worker and I was simply given the approval decision.

I was really scared after reading too many posts where the members seemed to have suffered but only after reading SkiiChamp's post that I got back my clarity. Which was to keep the supporting documentation simple.

I didn't attach any cover letter or complete the PBS point scoring sheet. Instead, my cover letter consisted of the categories of the points test in a table format as below with 4 headings -

Attributes (Earnings, Qualifications, Age etc)
Status Achieved -(£xx,xxx, Masters, etc)
Points claimed - (40, 35, etc)
Evidence -

• 1. Letter from Accountant including Management Accounts
  2. Business Bank Statements
  3. Personal Bank Statements
  4. Dividend Declarations
  5. Invoices
  6. Contract

For the leave of absence from UK - I had less than 180 and I marked each entry with Personal or Work related. I had a covering letter for that highlighting the fact that my cumulative absence for 5 years was for less than 180 days and I didn't wade into providing any reasons for that.

Hope those waiting to file find the above useful. I am happy to share any particular part of my experience as requested if that would help better your case.

After having spent many sleepless and fitful nights over the last few months, I can finally rest easy tonight.

Thank you all once again!

cheers

[martinstroke]

Many congratulations and thanks for providing the detailed questionnaire.

thanks

[kanswam]

You are welcome @martinstroke. Hope you and others find it beneficial. I could have been better prepared had I information on the exact questions on the questionnaire.

Best wishes to you if you are going to apply for ILR!

cheers

[O_Relly]

Congrats Kanswam. Raise you glass tonight and sleep well.

[noajthan]

Thanks for sharing an informative & inspiring post.

No doubt it will be reassuring for many members to see that scrupulous groundwork & preparation, together with a disciplined adherence to the relevant rules & regulations, does evidently pay 'dividends'.

[kanswam]

Thank you O_Relly. Your post helped me understand how it had to be done.

Thank you noajthan! I am just giving back what I had received from this forum. You guys are doing a great job moderating this forum.

[kanswam]

Noajthan and other mods
I shall post the questionnaire handed out at PSC in a separate thread, if thats ok with you. I believe that will help others looking to file as Limited Company directors

cheers

[kanswam]

@krish_p
I responded to your PM but the message has not gone out of my outbox. Maybe it is because, we both don't have enough posts.

[ilrapplicant101]

@kanswam
Congrats & I got small clarification with the 9th question, is it not suppose to be like "Are you satisfied that the SA tax returns submitted to HMRC and Home office reflected your income accurately? If not, why not and what further action have to taken to address it?"

Because for us whatever we submitted to HMRC is accurate to our best knowledge. Only issue, when the figure don't match with what we shown to Home office when extending for visa & required to explain about this? Correct me please if I am wrong... Just want to get clarification on this.

[kanswam]

@ILRApplicant101
The question as I have provided is exactly how it appeared on the ILR questionnaire.

The intent is to get your declaration that you had presented your income earned through "self-employment" accurately to HMRC. I guess the trap is - if figures in HMRC are correct then they can make the determination on the numbers presented to HO for prior extensions were right or wrong

[O_Relly]

Thank you O_Relly. Your post helped me understand how it had to be done.

Thank you noajthan! I am just giving back what I had received from this forum. You guys are doing a great job moderating this forum.

Cheers! And I was doing the same, giving back a little to a great forum. Glad it was of help.

[noajthan]

@krish_p
I responded to your PM but the message has not gone out of my outbox. Maybe it is because, we both don't have enough posts.

fyi - posts 'disappear' from the PM outbox when the other party picks them up & read them.

(Assuming a recipient is entitled to enjoy the PM feature ie after 30 posts).

[noajthan]

Noajthan and other mods
I shall post the questionnaire handed out at PSC in a separate thread, if thats ok with you. I believe that will help others looking to file as Limited Company directors

cheers

You are free to post information of potential relevance & interest to members;
that is, if it is in/from the public domain & is not confidential/restricted in any way.

[ashafqat2]

Hi kanswam,

It's an amazing news. I hope you are feeling relieved.

I have exactly case like you and I have few quick questions

What did you mention in Question 6. June 2009 or October 2010 date?

"6.1 When did you (the main applicant) rst enter the UK? This refers to the date of your rst entry into the UK at the beginning of the period of stay on which this application is based."

For question 6.2
Did you provide any explanation for your absence between June 2009 and October 2010?

Did you stamp your Dividend vouchers with your accountant?

Adeel

[kanswam]

Hi Adeel
6.1 - I used October 2010 only and didn't mention about June 2009. It was irrelevant for the application purposes
6.2 - because I didn't even mention June 2009 there was no need to provide justification for the gap
Dividend Vouchers - Yes, they were stamped by my accountant. I used to withdraw dividends on almost a weekly basis, I bunch them up into 1 declaration and list the 3 or 4 dividend amounts that I had taken. So, for 6 months I had 6 vouchers only


Hope that helps

[amit.katke]

Hi kanswam,

I have doubt on question 3 and 4. As per my understanding Director of Limited company is treated as employee of the company so not as Self employed and still we file self assessment tax return. So in this case what answers are suitable match to question 3 and 4 onwards as we are not self employed but still we file self assessment tax return?

I will be grateful if you could shed some light on this and also it will help others as well.

[kanswam]

Amit
I was in a quandary over this as well and initially I ticked the column against self-employed and then thought about it. Requested a new form from the reception and simply checked the years for which I had the SA record from HMRC while leaving the box against Self-Employed blank.

I don't know if it actually meant anything or not but the fact that I had the SA 302 on hand gave me the freedom to chance it.

Honestly, I don't even know who filed my SA - myself or the accountant. So, I the questionnaire I just mentioned it was filed by self only. This way, I wanted to avoid the query going to my ex-accountant. Who knows what he will say!?

If you have the SA302, then just tick the years for which you have it and you should be fine.

HMRC treats the term self-employed differently from HO. HO has clubbed everyone under self-employment for whatever purposes and don't make the distinction

Hope that helps

[kanswam]

Amit
You should work with your accountant to fill out the questionnaire. So that you get it right for your situation

[amit.katke]

Amit
I was in a quandary over this as well and initially I ticked the column against self-employed and then thought about it. Requested a new form from the reception and simply checked the years for which I had the SA record from HMRC while leaving the box against Self-Employed blank.

I don't know if it actually meant anything or not but the fact that I had the SA 302 on hand gave me the freedom to chance it.

Honestly, I don't even know who filed my SA - myself or the accountant. So, I the questionnaire I just mentioned it was filed by self only. This way, I wanted to avoid the query going to my ex-accountant. Who knows what he will say!?

If you have the SA302, then just tick the years for which you have it and you should be fine.

HMRC treats the term self-employed differently from HO. HO has clubbed everyone under self-employment for whatever purposes and don't make the distinction

Hope that helps

Thanks you for clarification. I have SA302 from HMRC/self assessment tax return submission forms, P60's, P45 for respective years. I was contracting through my limited company till Aug'2013 and I have closed my company. Now I am working as permanent employee. However I will still speak to my ex-accountant as they have all the details about self assessment.

[kanswam]

Amit
That should be good enough if you have the relevant HMRC documents. Don't worry about mentioning closure of your company or anything. I had closed my limited company too but HO is not interested in that.

HMRC is the authority on taxes in UK and if they have given a clean chit then HO would play ball. If they cause temporary block then it can be removed during AR/JR process. Of course, in the year of extension, you need to ensure compatibility between the 2 departments on your income and taxes

[ilrapplicant101]

@kanswam
Hi Kanswam, thanks for your reply. Ok, if the question is as you stated then my answer is YES (and I don't require to provide explanation)

but if they ask whether is it same for HMRC & HO then my answer would be NO as I have declared £200/- less to HMRC than what I shown to HO during my visa extension, as this is the expense I claimed after my visa extension. However on both occasion, I meet my income threshold of £35,000/-+

If I could borrow your advice, what do you reckon, do I need to say Yes & doesn't require explanation or I have to go for No & explain about the £200/- I declared to HMRC??

[kanswam]

@ILRapplicant101
If I were in your boots, then I would simply answer "yes" to question #9 in the ILR Questionnaire and leave it at that. Should the CW ask for clarification on the £200 odd difference then I would have a short and precise answer prepared for that. Something on the lines of - yes, there is a difference as the Tax filing that took place after my extension due to finalisation of the final set of income and expense.

If the query comes up, be honest and say there was no wrong doing here. You had anyway met your income threshold for that extension and there was no reason for you to deceive by inflating your income during extension.

I wouldn't sweat this too much if I have all my other documents in proper order.

But, whatever is the answer you are going to provide should they ask for clarification, kindly prepare and rehearse it several times with a trusted person or accountant.

Best wishes!

[ilrapplicant101]

@kanswam thanks. I'll do the same as it makes sense... Cheers

[ashafqat2]

Hi kanswam,

A quick question:

In your application which formula have you used to show your total income amount in Section 5?
1 or 2

1) Yearly Earnings = Gross Salary + Gross Dividend

2) Yearly Earnings = Gross Salary + Net Dividend

[kanswam]

Ashafqat2
I used Gross Salary + Gross Dividend to show my total earnings.

cheers