Director's salary

[jafersadeq]

Dear Gurus,
Please advise me about my situation: T1-E
Year 2016 , Director's Loan (Investment) about £275,000 (more than 200k). No profit (loss), and I am taking salary every month about £,1000.
Is it ok if I take a salary and the company in loss?

Thanks,

[noajthan]

Not if its eating into your 'investment'.

[jafersadeq]

Not if its eating into your 'investment'.

Dear noajthan,
Many thanks for your reply,
for three years I spend £39,000, so the investment will be £275k-39k=236k
My question is: Can I take a salary if the company in loss?
Please advise

[awan905]

Not if its eating into your 'investment'.

Dear noajthan,
Many thanks for your reply,
for three years I spend £39,000, so the investment will be £275k-39k=236k
My question is: Can I take a salary if the company in loss?
Please advise

I believe you are on 200k, as long as you are meeting the threshold of 200k then there should not be any issue.

[jafersadeq]

Not if its eating into your 'investment'.

Dear noajthan,
Many thanks for your reply,
for three years I spend £39,000, so the investment will be £275k-39k=236k
My question is: Can I take a salary if the company in loss?
Please advise

I believe you are on 200k, as long as you are meeting the threshold of 200k then there should not be any issue.

Yes, I am on 200k, I have two companies, I take the salary from one of them,
The DL is for £275k, but I take 13k a year as a salary.. last year I had a profit, but this year in loss.
Please confirm your opinion.
Thanks,

[zimba]

If you expenses are more than your turnover, you should not pay yourself ANY salary.
If you expenses are less than your turnover, your salary can be the difference.

[awan905]

Yes, I am on 200k, I have two companies, I take the salary from one of them,
The DL is for £275k, but I take 13k a year as a salary.. last year I had a profit, but this year in loss.
Please confirm your opinion.
Thanks,[/quote]

In your visa your minimum requirement is 200k which you are fulfilling even after pay.However what is the loss for each year, because that needs to be consider. Do you have the last two years annual accounts? what is the DL there, Cash, current assets, fixed assets, debtors and creditors?

[sm12]

If you expenses are more than your turnover, you should not pay yourself ANY salary.
If you expenses are less than your turnover, your salary can be the difference.

But from the point of view of ILR, won't it be a problem when they see your self-assessment documents and find out you have no salary or income?

[zimba]

No, why should it be a problem ?? There is NO salary requirement for ILR under Tier 1E route. You should continue to submit SA to HMRC as required by the law.

[sm12]

Sorry for bumping this old thread again, but I had a follow up question.

If a person is not drawing any salary from the business, is it advised that he or she shows maintenance funds like for extension?
Also, I assume that one must say Yes for the question about whether one is working in the UK under section 5 of ILR form?