ILR queries for self-employment

[ajs]

I own a limited company too and I am going for ILR on May 9th. I would suggest you submit the following:

1. Monthly Payslips (which will be a low amount) - I am getting this from my accountant - showing Month of Pay, Gross, Deductions, Net, Date paid
2. Dividend Vouchers (self issued and signed) - Preferably on your own company headed paper or professional looking.
3. Letter from your accountant stating (a) 12 month salaries with columns Month, Gross, Net, Date Paid
and (b) Dividends taken for the period with columns Reference (if any, ex: I use DIV-001), Date Paid, Gross (including tax credit), Net Amount
4. Personal Bank Statements for the period clearly highlighting Salaries and Dividends (net amounts and date should match the above 3 documents)

Invoices show the revenue of the company not your personal earnings. If you are the sole director/share holder you may show company bank statements in addition to the above.

Hi krthk.s, thanks for the useful info.

I have a query: My husband and I are 50-50 shareholders of limited company.
I got payslips, dividend vouchers, accountant letter, personal & business account bank statements as evidence for earnings. However in the business account there'ld also my husband's agency invoice amounts payments, my worry is it might cause confusion. Is it mandatory to supply business account statement?

[krthk.s]

As long as you supply documents 1 through 4 above, Business account statements are not necessary at all.

As I mentioned, only If you are the sole shareholder it makes sense to show the business account too.

[ajs]

As long as you supply documents 1 through 4 above, Business account statements are not necessary at all.

As I mentioned, only If you are the sole shareholder it makes sense to show the business account too.

That's great, thanks very much for your reply krthk.s.

Sorry, I have couple more queries and hope you can help.

Question 1:
I'll be claiming earnings for 11 months
• the limited company finances started from May 2011
• I started getting salary (& quarterly dividends) from June 2011
• My payslips and bank statements show income coming from June

The confusion is what is the period of months the earnings to show. Would it be from May 2011 or June 2011? I believe it should be June 2011, am I correct?

Question 2:
My salary credit and payslip dates for the last 2 months have changed.

• For June 2011 to Feb 2012 – payment date/payslip date date was 18th
• But for Mar & Apr 2012 – payment date/payslip date is 6th of the month

Will this be okay? Or the dates have to be consistent for all the months I’ll be claiming earnings for?

[krthk.s]

As long as you supply documents 1 through 4 above, Business account statements are not necessary at all.

As I mentioned, only If you are the sole shareholder it makes sense to show the business account too.

That's great, thanks very much for your reply krthk.s.

Sorry, I have couple more queries and hope you can help.

Question 1:
I'll be claiming earnings for 11 months
• the limited company finances started from May 2011
• I started getting salary (& quarterly dividends) from June 2011
• My payslips and bank statements show income coming from June

The confusion is what is the period of months the earnings to show. Would it be from May 2011 or June 2011? I believe it should be June 2011, am I correct?

Question 2:
My salary credit and payslip dates for the last 2 months have changed.

• For June 2011 to Feb 2012 – payment date/payslip date date was 18th
• But for Mar & Apr 2012 – payment date/payslip date is 6th of the month

Will this be okay? Or the dates have to be consistent for all the months I’ll be claiming earnings for?

1) If you don't have any earnings to show for May 2011, then you may show from June 2011. As long as you are able to score enough points for a period less than 12 months, there is no issue here

2) Getting paid on different dates is not a matter for concern as long as, the dates on the Payslips match your bank statement entries.

[ajs]

1) If you don't have any earnings to show for May 2011, then you may show from June 2011. As long as you are able to score enough points for a period less than 12 months, there is no issue here

2) Getting paid on different dates is not a matter for concern as long as, the dates on the Payslips match your bank statement entries.

I do have enough points for the 11 months. Thanks again for your responses, appreciate your quick replies

I'll be applying this week, will post my experience.

[DayDream]

2) Getting paid on different dates is not a matter for concern as long as, the dates on the Payslips match your bank statement entries.

I'm having a question over this, my accountant runs the payroll and they have set my pay date as 6th of every month. But I pay the salary from my business account on the 25th and it reaches my personal account after 2 working days.

Now should the payslip date or paydate on the payslip equal the date when money leaves(debit) the business bank account or should it be the date when money reaches(credit) the personal bank account?

Cheers

[krthk.s]

2) Getting paid on different dates is not a matter for concern as long as, the dates on the Payslips match your bank statement entries.

I'm having a question over this, my accountant runs the payroll and they have set my pay date as 6th of every month. But I pay the salary from my business account on the 25th and it reaches my personal account after 2 working days.

Now should the payslip date or paydate on the payslip equal the date when money leaves(debit) the business bank account or should it be the date when money reaches(credit) the personal bank account?

Cheers

I usually pay myself on different dates every month and say once in a few months, I send the dates on which the amount was paid in to my personal account to my accountant. The accountant then generates payslips showing those exact dates for me. I suggest you send the actual credited dates to your accountant and get the payslips generated based on that.

[golu]

I have the same scenario with my payslips, the dates on payslip dont match the dates I have made payments.

However I read few posts on this forum and think it should be ok as long as the amount matches.

all my payslips have date as the last day of the month, however its not possible to maintain those dates if the last day of the month is a weekend or a public holiday...

But I am hoping that should be ok, as I am going to get a supporting letter from my accountant and also going to provide the business bank statements which shows the payments made..

[ajs]

I am due to apply for ILR but am really confused as to what evidence I need to provide to prove my previous earnings.

I am a director of a limited company - so will provide a letter from my accountant with a breakdown of my earnings - but I am unsure what I can use as my second form of evidence.

If I provide business bank account statements or personal bank account statements, do I also need to show copies of my monthly invoices?

If I provide evidence of my invoices how are they different to the 'invoice explanations or payment summaries from my accountant' that also can be used?

Any help would be greatly appreciated, as this is really stressing me out.

Thank you!

I own a limited company too and I am going for ILR on May 9th. I would suggest you submit the following:

1. Monthly Payslips (which will be a low amount) - I am getting this from my accountant - showing Month of Pay, Gross, Deductions, Net, Date paid
2. Dividend Vouchers (self issued and signed) - Preferably on your own company headed paper or professional looking.
3. Letter from your accountant stating (a) 12 month salaries with columns Month, Gross, Net, Date Paid
and (b) Dividends taken for the period with columns Reference (if any, ex: I use DIV-001), Date Paid, Gross (including tax credit), Net Amount
4. Personal Bank Statements for the period clearly highlighting Salaries and Dividends (net amounts and date should match the above 3 documents)

Invoices show the revenue of the company not your personal earnings. If you are the sole director/share holder you may show company bank statements in addition to the above.

My husband and I are 50-50 shareholders of limited company, is it ok if my husband signs my dividend vouchers ? Or they have to be signed by me only?

[DayDream]

ajs

I believe you and your husband prepare two separate dividend vouchers when you decide to pay a dividend from the company profits? In this case, each voucher must be signed by the respective share holder.

[ajs]

ajs

I believe you and your husband prepare two separate dividend vouchers when you decide to pay a dividend from the company profits? In this case, each voucher must be signed by the respective share holder.

thanks Daydream, yes we take seperate dividend vouchers. Thank you for the response, I'll sign my voucher.

[krthk.s]

Folks, unless you are a director or secretary of the company you may not sign (or issue) dividend vouchers. Regardless of what % of shares you hold only an official office bearer can issue such documents on behalf of the company.

[DayDream]

unless you are a director or secretary of the company

hi krthk.s

I assumed "ajs" would be a director as well, but I could be wrong. Thanks for highlighting!!

Please see if you can answer one of my query above?

Cheers

[ajs]

unless you are a director or secretary of the company

hi krthk.s

I assumed "ajs" would be a director as well, but I could be wrong. Thanks for highlighting!!

Please see if you can answer one of my query above?

Cheers

Hi DayDream / krthk.s

I'm indeed director with 50% shareholder. I was thinking if my husband would sign my dividend vouchers, it would show like a witness /authorised person (director 2) signing it.

I guess i will go with signing my own dividend voucher and it should be okay

[krthk.s]

unless you are a director or secretary of the company

hi krthk.s

I assumed "ajs" would be a director as well, but I could be wrong. Thanks for highlighting!!

Please see if you can answer one of my query above?

Cheers

Hi DayDream / krthk.s

I'm indeed director with 50% shareholder. I was thinking if my husband would sign my dividend vouchers, it would show like a witness /authorised person (director 2) signing it.

I guess i will go with signing my own dividend voucher and it should be okay

ajs, If both of you are directors, then either of you could sign the vouchers. In that case, as you mentioned, signing each other's vouchers might be a good idea. Apologies if I caused any confusion

[krthk.s]

I suggest you send the actual credited dates to your accountant and get the payslips generated based on that.

Thanks for your quick reply, I think your above idea is worth considering provided my accountant can run payrolls for the past period. I need to check this, but by doing this way we will only be able to match the dates between personal bank statement and payslip. What about the date when payment left the business account? Can this be different to payslip date? I ask this because my payments take 2 working days minimum to get transferred, not sure if you do have any instant transfers?

DayDream, I suggested matching dates to the Personal statements as I thought one would be showing that for salaries anyway. I wasn't planning on showing the business statements. Also, in my case the transfer is instant since both my accounts are with HSBC

[ajs]

ajs, If both of you are directors, then either of you could sign the vouchers. In that case, as you mentioned, signing each other's vouchers might be a good idea. Apologies if I caused any confusion

that's great, thanks very much for your reply.

Sorry if I'm bombaring with too many questions. with regards to the "register of Share Certificates", can my husband and I sign for each other ? or it has to someone else?