Director salary out of revenue

[legalkhan]

Hello every body,
Congrats to all who have got their visa/extension and best of luck to all who are due for extension. Actually I have a question if some can please me with that, would be highly appreciated.

1) I came to know through my accountant (he has also confirmed it with a solicitor)that as a company director if I want to take the salary out of the operating revenue, I have to top up the investment with same amount. He says that according to HMRC and logic its ok but H.O wouldn't accept it.

My question is if some one invest all his money (£50000) in one go, how he is going to survive if he is not allowed to take his monthly salary out of the revenue his business generates.

Example: Invested = £50000
revenue genertaed =£3000 (1st month), 2500 (2nd month), 3400(3rd month)....
operating expences / other = £1500
Remaining = 1500(1st month), 1000( 2nd month) , 1900 (3rd month)


Now if I as a director take £700 as a salary, do I still have to repay this 700£ which I haven't taken from the investment(50000££) but out of the revenue.

My 2nd question is do I need a maintenance fund for extension visa as well???


Please throw some light on it if possible.

[zimba]

Now if I as a director take £700 as a salary, do I still have to repay this 700£ which I haven't taken from the investment(50000££) but out of the revenue.

No. This is not really difficult. You cannot pay yourself from the money you invested but you can pay yourself from revenues.

My 2nd question is do I need a maintenance fund for extension visa as well???

Yes. It requires £945 maintenance for 90 consecutive days

[legalkhan]

@zimba88,
Thank u so much for your help. God bless u.