Tier 1 General - Extension (Earnings).

[Rishi0172]

Dear All,

I work as a self employed and due on my extension in February 2012. Just want to know what documents I need to submit to the home office on earnings on self employed (Ltd Co.). I've read through the HO-website but not sure how salary and dividends's calculations work and what salary slab i come under.

The gross total in my business account till date meets the requirement but not sure how is it calculated. What documents shall I ask the accountant to produce to show total earnings.


Regards,
Rishi

[Lucapooka]

Can you say what particular aspect of the guidance you don't understand of your find confusing because to answer your question in it's current form would merely require me or others to cut and paste the precise wording of the guidance that relates to self-employed earnings, yet to do this would be to show you something that you say you have already seen.

[Rishi0172]

Guru,

Thanks for such a swift response.

Let me try and explain it.

I am getting confused with the salary and net dividend calculations. For example: I get an invoices paid to my business a/c and my accountant asks me to transfer an amount to my personal a/c leaving sufficient money for tax.

Not sure what shall I ask my accountant to produce to show a gross income in the last 12 months. Is it the net dividend vouchers or the salary slips or it is annual accounts.

Hope my question is relevant.

Regards,
Rishi

[AccountantMatthew]

For working out what is paid as dividends and salary, it is best to sit down with your accountant. S/he can explain what each are, how they are calculated, where they come from and what is actually happening specifically to your business - in terms of the tax position, profit position and personal earnings position.

Leaving UKBA visas completely aside it is essential that you grasp the basics of everything as it is you as the director who is ultimately responsible for, well, everything.

If you take visas into account, once you know the basics then you alone can decide how you want to prove your previous earnings.

But your accountant is the first port of call as they will have far more information at their disposal compared to us.

[Rishi0172]

Thanks Matthew,

you are right the best is to sit with my accountant and discuss.

Thanks once again,
Rishi

[mharoon79]

For working out what is paid as dividends and salary, it is best to sit down with your accountant. S/he can explain what each are, how they are calculated, where they come from and what is actually happening specifically to your business - in terms of the tax position, profit position and personal earnings position.

Leaving UKBA visas completely aside it is essential that you grasp the basics of everything as it is you as the director who is ultimately responsible for, well, everything.

If you take visas into account, once you know the basics then you alone can decide how you want to prove your previous earnings.

But your accountant is the first port of call as they will have far more information at their disposal compared to us.

Dear Silent Warrior

I was issued a tier general visa on March-11 on the basis of salary and self employment(UK earnings). I have paid whatever the tax was due. Now, I have started other business in overseas and running good. I was physical present in overseas for 6 weeks from( Aug-12 till mid September-12) and did self employed work. I came back UK in mid of September and doing lecturer job but the projects are still going on in overseas and payments are being credit in my overseas account. The query is

1 ) Can i claim overseas earnings as I am physically in the UK?
2) I have overseas bank statement, tax letter issued from the government.