Debtors in balance sheet

[tier1ext]

Hello,

I want advice from seniors and people who experienced below situation.

I work as a contractor through limited company and draw sal and dividend. Case worker asked me to submit balance sheet and invoice summary, business bank accounts which I did.

I claimed earnings for the period 26/10/11 and 31/05/11.

Balance sheet has 5 invoices amount which are debtors and they are paide after 31/05/11. When I submitted the business bank accounts I sumbitted the statements up to 17/06/11 which covers the payments for 3 out of the 5 invoices mentioned in the debotors.

I heard from one person who experienced situation related debtors that home officed doesn't consider debtors amount.

Now, my questions are:

1. Will home office consider 3 invoices for which payment is shown in the business accounts but outside the claim period though invoice date is with in the claim period?
2. If they don't consider any of the invoices in the debtors, how they will be giving points to the remaing earnings? I mean they consider salaray which is GBP 8650 and ignore some of the dividends to cover the debtors?

Could you please clarifiy?

Thanks!!

[John]

How was the dividend amount calculated? On the basis of the invoices that had already been paid?

Or alternatively somehow taking into account the invoices still outstanding? In which case how were those dividends financed?

[tier1ext]

Hi John,

Thanks for the reply. Yes, I am new to this forum.

I raise weekly invoice and I get paid by the client after one month from the date of invoice is raised. I was having enough funds in business account (which is kept for corporation tax and it is due in Octorber) to take as dividend. I thought that because corporation tax is due only in octorber and I already have invoices which are raised before May 31st and payment due so I took the dividend from funds available in the business account.

Thanks a lot for the response again!!

[tier1ext]

Hello, any specific answers to the above two questions please?

Thanks!!

[John]

I thought that because corporation tax is due only in octorber

I don't know when your company makes up its accounts but I express surprise the CT is payable as soon as October.

I was having enough funds in business account ................. to take as dividend

I think that as long as all aspects of Company Law were complied with, for example the Board of Directors declaring the dividends, I see no reason why the dividends, and attached Tax Credit, should not be taken into account.

[tier1ext]

Thanks John. My company started only on 26th October 2010 and first account period starts on 31st october 2011. I need to pay the coroporation tax by October 2012.

I am 100% share holder in the company and declared the dividend before receiving the payment for outstanding invoices.

I am not sure if home office will accept these invoices and consider these dividends as valid earnings.

[John]

My company started only on 26th October 2010 and first account period starts on 31st october 2011. I need to pay the coroporation tax by October 2012.

Well no, the CT is payable 9 months 1 day after the end of the accounting period, so by 01.08.12 at the latest.

I am not sure if home office will accept these invoices and consider these dividends as valid earnings.

If the dividends are totally legal under Company Law, which appears to be the case. the income should be taken into account by UKBA. But then they sometimes make strange decisions.

[tier1ext]

Yes John. You are right.

I should pay by July 2012.

Now, I am waiting for the decision from UKBA.