Question: Good funds for ILR stamping(Salary, Dividend)

[goodmans]

Hi Friends,

I got few interesting questions. I am on HSMP(Self Employed Contractor), Contracting in the country. I got my own LTD company.

I am due to go for ILR stamping in Feb-09. Main thing they will ask for is good funds.

What is good funds means?
Good money coming in the form of Incurred Salary only?
or
Good bank balance? irrespective of how i got the money?
or
Is dividend that I get as director of my company also considered as good funds?.

Should all funds come as salary only or can it be dividend(30K) + salary(6K)?

How ever me and my wife togeather getting more than 45K pa.

Please help is very much appreciated.

Thanks

[Frontier Mole]

You are getting hung up on the tax angle rather than the funding.

Assuming you are a one person business trading as a Ltd. company
You must have accounts; submit the accounts as proof of earnings. You should state the entire profit is yours. How you pay it to yourself is entirely your business, taking the tax breaks is fine.

If your business year end does not match up to your ILR year then suggest an interim set of account showing profit & loss only is put together to submit with your application.

Money in the bank is always good but they are interested more in income as you are HSMP.

John the moderator is a tax consultant - perhaps he could confirm the position??

[goodmans]

Thanks mate,

What ever I incur that will be paid to my Company, later somepart will come into my personal account as salary and some as dividend. Because I am the director of my company should it be considered as my income?.

So you want me to show like all the money in my business account and personal account as my income?

Cheers

[Frontier Mole]

One way or another the profit / earnings will be going to you. You are going to have to show your personal and business banking details to identify your "earnings". How these earnings are treated in respect of tax is not a great concern to immigration.

The bottom line is how much do you earn, a payslip is easy to identfy in most peoples view, accounts are understood by very few people.

As long as your account show a reasonable income to you as the sole employee / director that should get you through.