Tier 1 - Ltd comp. earning

Tier1extn001 · Post by **Tier1extn001** » Wed Sep 19, 2012 7:42 pm

Hi all,

I started working as a contractor with my own ltd. company from mid of July till mid of sep this year after which I was made a perm employee with my current firm last week.My question is how do I show my salary and dividend for the aforesaid period as all my income came into my business bank account and i havent touched them at all, i understand i can only pay to my personal account in lumpsum now but how do i mention what month I have earned for the visa officer to understand.Want to know as I plan to go for my visa renewal mid of next year or so.

thanks in advance

tier1Reading · Post by **tier1Reading** » Thu Sep 20, 2012 2:04 pm

See an accountant.

You may take dividends.

if required use this template.

Tier1extn001 · Post by **Tier1extn001** » Thu Sep 20, 2012 2:33 pm

thanks mate, i do have an accountant but he is ot familiar with visa procedures etc. hence i need to figure out a way to show them on my personal bank stmt.If I keep it as separate, salary, div, expenses, would it be ok to put salary from Aug 1st -Sep 15 and same for other components, if thats the case then technically my 12 mth period would begin from 1st Aug for the visa renewal assesment..any other tips etc. do share.thanks

tier1Reading · Post by **tier1Reading** » Thu Sep 20, 2012 2:56 pm

I am not sure how you will withdraw the salary for the months you have worked for your own company. Your accountant should help you on this.

Regarding taking dividends, you can take it now also. And I think the dividend earnings will be considered as your earning for the date on which it was withdrawn.

For example... you don't take any amount now from your biz a/c, and withdraw dividends next financial year (say in May 2013). Then it will be considered your earnings for financial year 2013-14.

Seniors can point out any thing additional here.

Tier1extn001 · Post by **Tier1extn001** » Thu Sep 20, 2012 4:00 pm

Seniors - please can you help.thanks

Tier1extn001 · Post by **Tier1extn001** » Fri Sep 21, 2012 12:09 pm

hello, anyone please who can provide any further advise.thank you.

Tier1extn001 · Post by **Tier1extn001** » Sat Sep 22, 2012 6:50 pm

Hello all, can anyone please provide any suggestion as I need to transfer salary and div etc and possibly close the ltd company soon...my accountant has no knowledge on visa rules...
If I take all of my div say month end can I use that funds to claim points say if I apply for visa in sep next year, even though the div was generated in aug and mid sep?
Any other expert tips would be really appreciated.

Thanks

silverline · Post by **silverline** » Sun Sep 23, 2012 11:48 pm

The key thing would be how to minimize overall tax/NI. And your accountant should tell you the most efficient way. I don't see anything in immigration rules restricting you to take money out of business in a certain way.

Though I'm a Chartered Accountant myself but I don't want to prescribe any tax strategy here which might later contradict with your accountant's opinion and ultimately lead to in a rather confused state.

Better consult your accontant first!

Tier1extn001 · Post by **Tier1extn001** » Mon Sep 24, 2012 12:14 am

Hi Silverline

I am not looking for tax strategy or how to minimize the tax or ni, my accountant will be able to tell me that.I am just looking to pay myself into my personal acc salary and div from my business account, on dates that correctly reflects my period of earnings for my visa renewal purpose next year.i earned the money during July end till mid sep, now when I transfer to my personal acct should I transfer as one lumpsum salary and say salary for sep or July-sep and same for div? Just for the visa officer to assess period of my earnings?

Thank you

silverline · Post by **silverline** » Mon Sep 24, 2012 11:12 am

You don't have to receive div n salary in those two months in order to claim points. It may be at later date. Withdrawal will depend your salary and div calculations. You may decide not to withdraw money at all and claim points on net profit after tax of the company.

Regards

Tier1extn001 · Post by **Tier1extn001** » Mon Sep 24, 2012 1:11 pm

Thanks Silverline for the info.
I plan to close the company and do not intend to work as ltd in the foreseeable future.Would you recommend that I keep the company remain open and remit salary and div as appropriate say next year March? would that funds be considered by UKBA for income calc.,if I claim it to have earned in March next year (although my company earned the same july-sep this year) before they issue me a visa? I just want to keep every simplified for them in a sense salary slips and bank staments so that there is no issues at the time of renewal.

Thank you

silverline · Post by **silverline** » Mon Sep 24, 2012 1:30 pm

You can change company status to dormant so you don't have to incur cost of preparing accounts and various return submissions. I don't see any problem in paying div. in march but make sure to pay tax on company earnings before giving dividend to yourself. Regarding salary payment, I would suggest you withdraw ASAP.

Tier1extn001 · Post by **Tier1extn001** » Mon Sep 24, 2012 1:54 pm

thanks Silverline, when I pay myself salary any specific wordings that i can use to remit to my personal bank a/c for case worker to see - so ''Salary July 27- Sep 15'' for the amount that I remit, can I name it this way now, which month then this earning that I pay myself be applicable? thank you

silverline · Post by **silverline** » Mon Sep 24, 2012 2:03 pm

Yes. You should mention the word salary and relevant date. Good to mention year as well. That will make it easy for CW.

Tier1extn001 · Post by **Tier1extn001** » Mon Sep 24, 2012 2:34 pm

ok Silverline, so to summarise -

1) I can pay on 1st oct, 2012 - salary for the abovementioned period and name it as ''Salary July 27- Sep 15, 2012'' and claim the earnings as within 12 mths if I do plan to apply for my visa say 1st sep 2012.

2) I can pay dividend earned during the period anytime next year, provided my company still exist, i.e even dormant and not completely defunct, and claim points for my earnings after i have paid off my corp taxes

On the other hand I was thinking to close my business completely now as I will not be using it any more, pay all the taxes etc and finish all the formalities as Ltd. co.In this case I would assume I cannot pay div to myself next year then, can I? and finally would you know a letter format I need to get from my accountant to submit it to HO?
I really appreciate in extending your help and wish you the best!!

silverline · Post by **silverline** » Mon Sep 24, 2012 2:57 pm

Tier1extn001 wrote:ok Silverline, so to summarise -

1) I can pay on 1st oct, 2012 - salary for the abovementioned period and name it as ''Salary July 27- Sep 15, 2012'' and claim the earnings as within 15 mths if I do plan to apply for my visa say 1st sep 2013. That's fine

2) I can pay dividend earned during the period anytime next year, provided my company still exist, i.e even dormant and not completely defunct, and claim points for my earnings after i have paid off my corp taxes. I am unsure why do you want to pend the payment until March 2013. But payment of dividend on or around March 2013 will be ok. If you pay dividend out of a dormant company. It will not be deemed as dormant you will have to do routine tasks i.e. returns etc. Therefore It's advisable to pay div and then make it dormant.

On the other hand I was thinking to close my business completely now as I will not be using it any more, pay all the taxes etc and finish all the formalities as Ltd. co.In this case I would assume I cannot pay div to myself next year then, can I? see # 2 and finally would you know a letter format I need to get from my accountant to submit it to HO? Formats are available on sticky posts on this forum.
I really appreciate in extending your help and wish you the best!!

You can close your company at any time and still claim points but I am unsure how will CW take it. Remember, CW don't like to bother about technicalities and like to see things straight. If he found company de-registered, he might ask you additional evidences..

Tier1extn001 · Post by **Tier1extn001** » Mon Sep 24, 2012 3:57 pm

Thanks Silverline.

So if I apply say in Dec 2013, I will not be able to claim the salary then, do I? taking 15mth rule, July-Sep will be beyond that threshold.

I will take the div out next month as well and bring the business to dormant status...thanks for this tip!

I will also not wind up my company until my visa renewal to avoid unneccesary docs from HO.When I apply do you think I should set the company status as active?

Many thanks

tier1Reading · Post by **tier1Reading** » Mon Sep 24, 2012 5:34 pm

silverline wrote:You may decide not to withdraw money at all and claim points on net profit after tax of the company.

@silverline... i don't think we can claim points on the net profit after tax of the company(even if you are sole director).... we can claim points on salary and dividends.

http://www.ukba.homeoffice.gov.uk/visas ... /earnings/

am i missing something ?

silverline · Post by **silverline** » Tue Sep 25, 2012 12:25 am

tier1Reading wrote:
silverline wrote:You may decide not to withdraw money at all and claim points on net profit after tax of the company.
@silverline... i don't think we can claim points on the net profit after tax of the company(even if you are sole director).... we can claim points on salary and dividends.

http://www.ukba.homeoffice.gov.uk/visas ... /earnings/

am i missing something ?

Give me specific reference from immigration rules which restricts points only to salary and dividends.

There is general misconception that only salary and dividends can be used to claim points. Infect applicant can save tax by claiming points on post tax net profits of the business.

Points can be claimed for

Salary + Dividends
Salary + Dividends + Net profit after tax (after dividends)
Salary + Net Profit after tax

Tier1extn001 · Post by **Tier1extn001** » Fri Sep 28, 2012 10:06 pm

hi silverline

Wanted to seek your advise, I want to file my personal tax returns for last FY as I had lost my job begining of this year and was unemployed for couple of mths and then made an earning thru my ltd co. that i paid to my personal a/c - do you think one can file their returns online by themselves without seeking an accountants help, the acc that I know is quoting a price doesn't sound right.Pls can you tell me how much is the normal price to o this work?
thanks

silverline · Post by **silverline** » Fri Sep 28, 2012 10:38 pm

Tier1extn001 wrote:hi silverline

Wanted to seek your advise, I want to file my personal tax returns for last FY as I had lost my job begining of this year and was unemployed for couple of mths and then made an earning thru my ltd co. that i paid to my personal a/c - do you think one can file their returns online by themselves without seeking an accountants help, the acc that I know is quoting a price doesn't sound right.Pls can you tell me how much is the normal price to o this work?
thanks

You can always file a return on your own. There is no restriction as such. Just be sure that you don't mess up anything.

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Tier 1 - Ltd comp. earning

Tier 1 - Ltd comp. earning