Starting Limited Company - Please advice for ILR

[yokie]

Hi Guys,

I want to understand how to prepare my income for ILR if I have to setup a limited company.

Questions:
1. If a setup a limited company how much salary and dividends should I take?
2. Can I put my wife's name in the company, if yes then will the dividends income be considered? I understand that the salary that she takes will not be considered
3. If my wife is a partner how should we share the salary and dividends?
4. What things should I take care about?

Regards
Sanjay

[wpilr_nov12]

You might want to review the conditions of your visa, and any supporting guidance published by UKBA.

[saran79]

you should care about hm revenue , corporation tax, accountant fees, tax and ni for any salary drawn... think twice..

[yokie]

What about

1. If a setup a limited company how much salary and dividends should I take?
2. Can I put my wife's name in the company, if yes then will the dividends income be considered? I understand that the salary that she takes will not be considered
3. If my wife is a partner how should we share the salary and dividends?

[vivekmarwah]

I think you are still considered employed through your limited company. So for Tax planning you withdraw minimum salary and rest you draw dividends. Combination of both ideally should not go beyound 40K annually for main person. you can get a SA 302 form from HMRC that shows your individual income of 40K after your accountant files your return and whcih is sufficient to demonstrate continuous income.

For last 12 months, you need payslip and dividend, signed and stamped by account and similar entry in your personal account. You also may need corporate account statement showing net salary going into personal account.

You should also carry corporate tax statement which you file at the end of the year supported by the accountant letter explaining everything. Remember, it is important that accoutant is member of a recognized accountant body in UK.