Tier 1(General) extension, Director & with above 40K sal

[kk032012]

Hello,

I am one of the director of LTD company started in March 2011. Till now I have not taken any dividends from my company. But I have been drawing salary above £40K per annum by paying PAYE + NI. When I go for tier 1 extension this month I would like to represent me as salaried employee from my LTD company, by submitting last 12months Payslips and bank statements and I don't want to submit any documents from my accountant to state me as DIRECTOR.

would this cause any issue, can I go with only SALARIED employee as I have enough salary to get MAX points for earnings. or is it mandatory for me to state SALARIED + SELF EMPLOYED (submit ACC documents).

Have you seen any case like this before. Please share your experiences.

Thanks,
KK.

[QuickSam]

You don't need to send Accountant letter and explanation of earnings only if you are self employed. You need it even when you show yourself as employed by your own limited company.

Your case is not much different than others. Most of us are directors of our companies and take salary + dividends. We have submitted Accountant letters for our extensions and have been successful.

**UKBA states that you need two evidences of each type of payment. If you are showing your salary slips and bank statement, that should be enough. It would actually not hurt if you include the accountant letter.

[pkat]

My Advice would be to carry the accountants letter, Company formation certicate and relavant HMRC letters.
Not drawing the dividends from the company would not make you stand apart from rest of the directors.
I was too drawing only the salary still I was asked to produce the company related docs during my extension at PEO Solihull

[hussainkothari]

kk032012. You have got your concepts wrong.

1. Either your are salaried or self employed.
2. In your case you are salaried. This is not because you are not taking dividends. This is because you are a salaried employee of your company. It so happens that your company (not you) is not paying you dividends.
3. You should take your payslips and bank stmts as proof and also an accountant letter. You may need as a alternate source of proof.
4. If you are going for a PEO its better to take other supporting evidence as well as suggested by pkat.

**BTW in my opinion, if you have taken such a high salary just to avoid any problem at the T1 extension you would have paid a lot of tax/NI probably for nothing!!

[kk032012]

Hi All,

Thanks for all your replies. I will carry supporting documents for both.

regards,
KK.