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Ltd. Company - No NI for minimum withdrawn Salary - Advice

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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npanglia
Member
Posts: 155
Joined: Mon Sep 21, 2009 8:57 am
Location: New Delhi

Ltd. Company - No NI for minimum withdrawn Salary - Advice

Post by npanglia » Sat Apr 14, 2012 12:39 pm

Hi,

As a director of limited company, I have withdrawn minimum threshold salary of £589 for the claim period and hence havent paid any NI or PAYE for the period. It is reflecting in my salary slips (attested by my accountant) as well.

In my cover letter for Tier 1 extension, I have provided clarification stating "Majority of my earnings are through dividend and the salary withdrawn is below secondary threshold limit as defined by HMRC, hence I am not liable to pay any NI for the period".

Please advice if the statement above is good enough clarification on NI for Tier 1 Extension.

NP

esmsi
Senior Member
Posts: 519
Joined: Sun Feb 26, 2012 11:36 am

Post by esmsi » Sat Apr 14, 2012 2:58 pm

I do not prefer to mention on your cove letter.

But ,589 /per month no problem.

http://www.cheapaccounting.co.uk/blog/i ... pril-2011/

npanglia
Member
Posts: 155
Joined: Mon Sep 21, 2009 8:57 am
Location: New Delhi

Post by npanglia » Sat Apr 14, 2012 6:49 pm

That's scaring me now.
I have already mentioned this in my cover letter and Posted.
Seniors - please advice if that's a problem. I know nothing can be done, however trying to appease my apprehensions...

Sushil-ACCA
Diamond Member
Posts: 1234
Joined: Wed Apr 02, 2008 2:47 pm
Location: Wembley Park

Re: Ltd. Company - No NI for minimum withdrawn Salary - Advi

Post by Sushil-ACCA » Sun Apr 15, 2012 12:27 pm

npanglia wrote:Hi,

As a director of limited company, I have withdrawn minimum threshold salary of £589 for the claim period and hence havent paid any NI or PAYE for the period. It is reflecting in my salary slips (attested by my accountant) as well.

In my cover letter for Tier 1 extension, I have provided clarification stating "Majority of my earnings are through dividend and the salary withdrawn is below secondary threshold limit as defined by HMRC, hence I am not liable to pay any NI for the period".

Please advice if the statement above is good enough clarification on NI for Tier 1 Extension.

NP
this situation has no impact on visa , u can get it rectiifed by paying ni and thats all , it have no effect if u have mention in yr covering letter also.

AccountantMatthew
Member of Standing
Posts: 301
Joined: Mon Jul 04, 2011 5:20 pm
Location: London Town

Post by AccountantMatthew » Mon Apr 16, 2012 7:19 am

I'm not a caseworker (obviously) so don't make the decision but at the end of the day you are complying with your tax obligations - it's just that at the level of salary you are at, neither yourself nor the company are required to pay National Insurance contributions.

You are far from a unique case so it is unlikely to bring UKBA's office to a standstill! Also the fact that you mentioned it in your cover letter is irrelevant in terms of consequences.
Please don't private message me or e-mail me for free personal advice - you are just wasting your time writing something that won't get answered.
Anything written here shouldn't be construed as being formal advice given in a professional capacity.

tier1_aspirant_del
Member
Posts: 153
Joined: Sat Mar 06, 2010 2:45 pm

Post by tier1_aspirant_del » Thu Aug 23, 2012 10:45 pm

Hi npanglia,

Did you get your visa without any complications? I mean with no queries from UKBA? My ext is also due and i am facing the same situation.

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