company loss limited company tier 1 gen- interesting

[shedy789]

Hi,

I'm going to apply for my extension for tier 1 general, the case is as follows,

1- I'm considering my income from 01 April, 2012 to 31 March, 2013.
2- I am working as director for limited company.
3- I submitted my account for the close of 1st year at end of January, 2012 after completion of first year of the company.
4- I'm also considering february and march for further earnings.
5- I got the bill for my tax payment based on the accounts submitted for first year.
6- now after considering earnings including February and March for 12 months, if I commulate my earnings minus tax amount, these could be a bit shorter than the required level but if i take the amount kept separate for tax purposes ( keeping in mind that tax payment due date is 01, November, 2013 and more incomes can be generated to pay tax) as dividend, then my required level will be achieved.

My question is can I take this amount as dividend kept separate for tax purposes and in later months earn more money and pay tax but this will happen after application for visa extension and currently company will be looking in loss.

is it possible to do that? need urgent advice on this as two three days left for me to apply for it.

[bubin123]

legally you cant take dividends outside your "distributive Profit"... However this will be a concern for HMRC and your accountant... these payments are usually treated as director's loan...

[shedy789]

legally you cant take dividends outside your "distributive Profit"... However this will be a concern for HMRC and your accountant... these payments are usually treated as director's loan...

sorry to ask you but what is this distributive profit, you mean to say that once you finalize your accounts and a bill is already with you for payment then those amounts should always remain in the bank account to pay taxes and deductions from your company account should not go beyond your required tax to be paid tax amounts and if these are required to be withdrawn then these be treated as director's loan.
In this case more revenues need to be generated. am I right?

Waiting for your reply.

[bubin123]

It is your "point in time" net profit after tax and expenses...

[susheel]

Hi,

You can Claim Gross dividend + Net Dividend.

Gross Dividend = Net Dividend / 0.9.

U can also take more dividend amount from Ur business account example from VAT payment amt. Then Later month U will withdraw less dividend and pay Vat.

I have done like this way and got my Visa done yesterday by post.

[shedy789]

It is your "point in time" net profit after tax and expenses...

as you said earlier that this is between accountant and HRMC, can UKBA challenge it and put any objection on this as the accounts will be finalized next year in january and it is still premature? just askng

[londonuk9]

i applied for tier 1 extension like same case....
i am not director but i am company secretary and got 1 share for company.
i put dividend but company shown loss for the claim period....
UKBA request me for account letter and set of accounts.....
now what should i do?????
what will chance for my visa?????what are the ways(solutions)????
please help senior gurus!!!!!