Contracting, Ltd company and T1 G extension

[T1_Mainframe]

Hi Guys,

These days, I have been doing Permanent job because it provides stability and fixed income to extend my Tier1 (General) visa. However, now I want to get into Contracting, using my own limited company.

I have query to those who are contracting and having own limited company.

As we know most of contracts are of 6 month and one may have gap between two contracts - one could be out of contract when nearing extension or while applying extension.

Can I pay myself a monthly salary from ltd company even I am out of contract and use same salary for extension even when I am out contract? Would that keep every aspect of my employment legal and I can seamlessly extend visa?

I understand I might have to hire services of good accountant to do audit and authorize numbers.

Please share of experience and feedback.

Many thanks,
T1_mainframe

[pied.piper]

I am also interested in knowing...specially can one setup a contracting company using his own capital so that per month salary doesn't become an issue?

[rajesh9pl]

However, I do not see anyone replying.

I have seen many guy asking list of documents required for extending visa. However, none of them have shown interest to respond.

[abbi123]

I am interested to know abt this, please some GURUS shoot your answer

[t1s2010]

Please wait patiently.
Forum people who are consistently quick to claim that 'UK market is really bad' will surely help. It may TAKE some time and may NOT be quick but surely you will have 'piece of mind'.

**I am assuming understanding of 'commenting on market as a general' is far better than understanding of 'such rules'**

Purely pun intended.

P.S. - I hope, same guys will NOT focus on my statement; they will focus on question.

[Idea]

i'm not a guru, just my 2 pence

OP- maybe bec. your question is vague or already answered many times, there are no replies

- yes you can pay yourself salary. but i dont see the difference between paying yourself dividends+ salary or salary. if its just to fill the gaps i think its not necessay as your income for the period is the same either way.

- yes you'll need an accountant to manage your accounts

- my experience...has been good in contracting(was severely discouraged by friends before i took a contract) . to be frank learnt about the pitfalls after starting with it and am lucky in many ways

. there are many factors to it including your skills, the companies work status etc. and i feel only you are the best person to decide if you can take the risk

[hussainkothari]

Can I pay myself a monthly salary from ltd company even I am out of contract and use same salary for extension even when I am out contract? Would that keep every aspect of my employment legal and I can seamlessly extend visa?

- Not sure about salary, but you can take dividends.

I understand I might have to hire services of good accountant to do audit and authorize numbers.

-Yes. For the purpose of your visa you accountatnt should be member of a recognised supervisory body. These are: The Institute of Chartered Accountants in England and Wales (ICAEW); the Institute of Chartered Accountants in Scotland (ICAS); the Institute of Chartered Accountants in Ireland (ICAI); the Association of Chartered Certifi ed Accountants (ACCA); the Chartered Institute of Public Finance and Accountancy (CIPFA); or the Chartered Institute of Management Accountants (CIMA).

can one setup a contracting company using his own capital so that per month salary doesn't become an issue?

- Not sure. What I am aware is that you cannot show expenses to the company, if you do not have a valid contract.

[mulderpf]

can one setup a contracting company using his own capital so that per month salary doesn't become an issue?

Yes, you can pay yourself monthly from your total earnings to cover gaps, this should not be any issue as this does not concern the home office. For self-employed individuals, the home office is interested in earnings and dividends, not the monthly salary which you draw.

In terms of paying yourself from capital you put into the company, it will not be considered to be earnings - capital is capital and not earnings, regardless if you are drawing a salary from there.