Hi There
Apologies for taking over someone else's thread.
Also thanks in advance for your answers.
I have a similar situation. I am planning to submit spouse visa application for my husband. I am British and he will be applying from outside the UK.
I run a limited company as the sole director(Finance Contractor). I am looking to rely on the income from average of last two financial years .Cat G.
In the previous year,i paid myself a salary of £9700 and I have declared more than £20000 in dividends all of which has been transferred to my personal bank account and these dividends have been declared in my tax returns to HMRC. I transferred some amounts into my bank account with a reference/narrative written as 'Expenses' and others as Dividends. I was only able to claim certain expenses and so the others were classed as Dividends. Please note that all allowable expenses have also been declared in the Tax Returns. I paid the Corporation Tax due.
In most recent financial year just ended, just like the previous financial year, i was only able to claim certain expenses and the remaining amounts transferred into my account were classed as dividends although the bank transfer narrative is 'Expenses'.
Dividends declared is 15700 and Salary claimed 12900.
Questions
1. Would the bank account narrative/reference used in the transfer for Dividends be an issue?
2. I am just about to file the company accounts with HMRC although they were not due till Jan 2017. Am I required to show Home Office that corporation tax has been paid for the tax due at point of submitting application?
3. What do we need to show to prove to the Home Office that the amounts transferred are actually dividends and no longer expenses?
Any information would be greatly appreciated
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