Tier 1 General Visa extention- Business tax

[Krisan]

Hi,

In the Ltd company structure, the earnings we need to show first time to get tier 1, do we need to pay the whole tax that we had showed. Would Home Office ask for tax documents for last time. Please advise.

[AccountantMatthew]

Sorry Krisan are you referring to Corporation Tax? For tax purposes you, of course, need to pay the tax owed(!) whatever tax it is but please elaborate on what you have written and I will try and answer more fully.

[Krisan]

Hi,
I want to know about the corporation tax liability in regard to ltd company. Because, when I have applied for tier1 visa, my ltd company did not complete the year end. so, company's year end was later about six month. During this period my company did incur expenses and obviously the company's profit will not be the same as at the date of application. does it affect the earnings of director if profit decreased afterwards.

[AccountantMatthew]

You'd be dealing with two different periods for your application and your accounts Krisan. Your earnings period didn't coincide with your accounting period so I'm gathering that you had a separate set of accounts drawn up for your earnings period.

There will undoubtedly be movement in your income and expenses (and therefore Corporation tax payable on your taxable profits) between the end of your earnings period and year end. However it is outside of your earnings period so isn't relevant. The main thing is that your accounts for the earning period would reflect the correct state of affairs.