Query on Previous Earnings for Tier-1 Extension

[mr_pankaj]

Hi All

Giving you a bit of background before I raise my query :

From this month, I have started contracting with my own Limited Company and until now I was working as an employee. Keeping in mind of my Tier-1 extension (due in October'2014), I had a discussion with my accountant on the amount I should pay myself as Salary and Dividends in order to score 45 Points required for my visa extension.

On that my accountant has mentioned not to pay any salary until March'2014 and I should only pay a maximum dividend of £7000 up to March'2014.

The reason for this mentioned by my accountant was, while working as an employee I have already earned the Salary for the current Tax Year and have already paid the required Taxes. So it is not advisable for me to get anymore Salaries, else I will come in higher Tax range, which is not advisable for a Director of own Limited company.

I did explained him the concept of point system which UKBA works on for visa extensions, and for my case I need to show 45 points from previous earnings. Having understood this requirement from UKBA, my accountant still confirmed that after April'2014 we can have salary + dividends in a tax efficient manner which will meet the requirement of points required for my visa extension.

My Question : In the eyes of UKBA is it correct, that I get paid only £7000 (as dividends) from Nov'2013 till March'2014 and NO salary and for rest of the months I get paid the balance £33,000 (Salary + Dividends).

Hope I would have explained my situation properly, would appreciate if anyone has experienced this and could give some pointers. I am just making sure that I don't end up in some issue during the extension period, with specially knowing the fact UKBA is conducting Interviews to test genuine earnings.

[O_Relly]

My Question : In the eyes of UKBA is it correct, that I get paid only £7000 (as dividends) from Nov'2013 till March'2014 and NO salary and for rest of the months I get paid the balance £33,000 (Salary + Dividends).

Yes, that is perfectly fine.

[jasperfalix]

Hi,

I am going for my 2nd Tier1 (General) extension this April 2014 and I would like to know whether there is any minimum Pay requirements for Tier1 (General). I am getting 85 from the PBS calculator. I am bit worried since I am earning less than 40k. Could you please let me know whether I am eligible for an extension.

Thank you,
Jasper

[ScopeD]

Hi,

I am going for my 2nd Tier1 (General) extension this April 2014 and I would like to know whether there is any minimum Pay requirements for Tier1 (General). I am getting 85 from the PBS calculator. I am bit worried since I am earning less than 40k. Could you please let me know whether I am eligible for an extension.

Thank you,
Jasper

Tier 1 is a Points-based system, which means that the decision on your application will be based on how you've scored points (subject to you not falling under the 'General Grounds for Refusal' pool). If you are getting 85 points from the PBS calculator, and if the guidelines say that you need to score 80 (or 75 points depending on your circumstances), then you should be ok.