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Contractor Dividends paid after year end

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

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AusinUK1
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Posts: 4
Joined: Tue Oct 09, 2012 9:43 pm

Contractor Dividends paid after year end

Post by AusinUK1 » Tue Oct 09, 2012 9:49 pm

Hi All,

I'm planning to submit my ILTR application in December 2012 under Tier 1 General provision, and as I was between work for a few months I'm encountering some issues with the earnings requirement.

Up until Dec 2011 I was contracting through my limited company, then after a few months searching for work I started a full time job in May 2012. I've just finished my company accounts for year ended April 2012.

I'm showing a profit in the company and have accounted for my drawings over the period as director's loans, until the company's position was finalised and the best way to declare the company's earnings, and my renumeration, worked out.

I'm now planning to lodge the company tax return, pay the company tax, pay back the director's loan, then declare and pay a final dividend to myself this month.

My questions are:

1) if I declare and pay myself the fully taxed dividend now (with evidence from HMRC that tax has been paid) will the UKBA consider the dividend as income earned by me in this month (as opposed to earned through the company's trading activities in 2011)?

2) Will I then not need to submit company accounts as I'm not claiming company earnings during the 12 month period but declaring the dividend as personal earnings this year on my bank statement (and eventually) in my personal tax return i.e. my personal earnings, not the company's earnings?

3) Will they ask for unaudited accounts that pro-rate the company profits/dividend to the start of the 12 month period i.e. Jan 2012?

Thanks, any help on this would be greatly, greatly appreciated.

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