Advice on ILR Application - Self Employed

[spaul]

Dear all

My current Tier 1 General Visa expires on 31st July 2012.

I had an appointment at Croydon for ILR Premium service yesterday (i.e 4th July 2012). They have retained all the documents and asked me to send additional documents by post within 14 days.

My questions are as below:
1. Can I apply for Tier 1 extension while UKBA is working on my ILR application?

2. Can I apply for Tier 1 extension later if UKBA decides to refuse my ILR application? If not, what are my options to continue working in the UK and progress this with UKBA?

3. Do I have "right to work" in the UK while UKBA is deciding on my application? If yes, how do I get a formal statement from UKBA that can be submitted to my employer?


Even though I am 70% positive it should go through, my current view is case worker does not have enough knowledge on self employed applicants. She even consulted senior case worker twice. That's my worry. That's the ground I am thinking if UKBA decide to reject my application.

I am self employed and director of a limited company. I have provided pay slips, P60, Original Self Assessment tax statement from HMRC, original dividend vouchers and certified accountant's statements of my "previous earning" to meet Tier 1 general's 45 points criteria i.e earning of £40k+. In my understanding, this should be enough! I used the exact same documents when I applied for Tier 1 extension 3 years ago. They accepted those happily. Now they are not!

The additional documents case worker have asked now are my business account statements and my business's profit and loss accounts. I have these documents ready and I will be sending them shortly. My business account clearly shows salary, dividend, corp tax and VAT being paid correctly. However I am not impressed with the knowledge of the case worker as she was so confused when I said, I am self employed. She did not even know FCCA accountants are higher in grade than ACCA and they are under the same UKBA approved accounting body ACCA. If someone does not understand difference between FCCA and insist me to get a letter from ACCA, that's a laugh! I am bit worried with these level of skills, how would my case worker understand my business profit and loss account! Thus I thought to ask senior members their view.

My business has contracts with a client and they are literally asking me every week (That runs out on 31st July 2012) of my visa progress status.
What do you advise in my scenario?


Any help is deeply appreciated.

Regards
Soumen Paul

[Casa]

If you are a Director of a Limited company, you aren't Self Employed. You are an employee of the company.
However, it won't be the same case worker who will process your application.
It will be dealt with at a more senior level. You retain your existing legal status while the application is being considered.

[spaul]

Casa
Many thanks for your reply.

Yes. I explained this to my case worked standing there at least 5 times that I am not a self employed and I am the employee of my own limited company which has last 4 years of solid background. She insisted saying, I am self employed as it's one man company. That made me thinking that I might be wrong.

That's good to know senior case worker would look into the case.

RE: Legal status remain same.
How do I prove this to my client who needs visa? UKBA just provided me one receipt of payment and nothing else stating someone is working on my case.

Would you be able to clarify the other questions I asked if you have time? RE: Tier 1 extension etc

Thanks in advance

[Musafir]

@SPaul : The case worker is wrong, you will be self employed only if you are registered with HMRC as sole trader or self employed, but being a director of a company doesn't make you self employed. You are the employee/director and share holder of the company, technically speaking a self employed can be an employer but cannot be employee of self employed but a director is an employee of a company even if he owns a company..... remember a limited company is an entity....go through the companies act.

As far as cw is concerned, they wouldn't be working as CW if they are smart enough.

[Krishnalvr]

@spaul

Did you manage to send the necessary docs to UK BA ?

Have you received any message regarding your application process ?

[tier1Reading]

According to HRMC you are an employee of Limited company, but as far as UKBA is considered you are Self Employed. There are many cases in this forum where seniors have explained this.

[tier1Reading]

http://www.immigrationboards.com/viewtopic.php?t=103611

[tier1Reading]

Under Part 6A of these Rules, "Self-Employed" means an applicant is registered as self-employed with HM Revenue & Customs, or is employed by a company of which the applicant is a controlling shareholder.

[KD1]

The following could be a solution to the above problem

If the accountant administers the payroll they probably are required to provide a letter to their client (i.e. the directory) on what PAYE and NIC (employer and employee) are being calculated every month as this would form the basis for the limited company making this payment from the business account on a quarterly basis.

So my view is that one should get that letter from the accountant and cross reference the quarterly payment amounts with the business bank statements.

Not sure that the P&L statement is actually any use here.

[spaul]

Thanks everyone for your help and support.

I have received a call from HO confirming that ILR has been granted. I will collect my passport on Monday. Looks like HO works over the weekend!

Full details
http://www.immigrationboards.com/viewto ... 566#680566



For everyone's clarification. There is very thin line between self employed and director ( employee of their own company). Doing some research on this I have found HO is wrong and director of a limited company are truely employee of their own company. However as HO require to verify if you are earning enough and if you are paying taxes lawfully (I stress this tax point), thus they assume we are self employed on their discretion until you explicitly provide relevant information in a form of covering letter. You have to remember, directors only pay taxes after approx £35k annual income but pays NIC and their company pays corp tax or VAT. Now there are limited companies who are not even VAT registered and many directors do not submit self assessment tax even though tax is zero. There are many limited companies who do not have book keeping (i.e profit loss account). Thus HO can not trust every directors. The following items distinguishes yourself as director and strenghten your case as director and NOT a self employed.
1. Ensure your accountant letter shows you are director and doing day to day management of your limited company
2. Pay slip shows you as executive or director as designation. NIC and PAYE references should be shown on the pay slip.
3. Limited company registration, VAT registration and yearly CORP tax statement submisstion (Form CT).
4. profit loss accounts
5. You submitting self assessment tax every year.

If you have the above, you are truely a director and can call yourself an employee of your limited company. Basically if you have a proper accountant you WILL have all of the above.

What doc to be provided depends on how you are presenting yourself in the covering letter. But covering letter is a must explaining all these.

[spaul]

@spaul

Did you manage to send the necessary docs to UK BA ?

Have you received any message regarding your application process ?

I opted for premium service and I had contradiction with CW on "self employed". CW deferred my case and asked for more documentation.
While sending additional documentation CW asked for, I sent covering letter explaining my state and created case that I am employee of my own company and not self employed.