Tier 1 General Extension as a Limited company Director

[Ali_Raza_2244]

Hi Members,

I am applying for my extension next month, and would be applying as employed (sole director of limited company). My queston for senior member is if my Business earnings are from more than one source (Two companies paying in my business accounts ) Can I still apply as employed category with Salary slips, Dividend vouchers, Bankstatements and Accountant letter as main documents and invoice summary and company accounts as additional documents. Or I have to apply as self employed ?

Will appreciate your quick response specially Quick Sam as I read your reply posted : Fri Mar 30, 2012 6:12 pm in which you mentioned :

To keep it simple:

Limited company director's generally apply as employed if the earning is only from one source. They apply as self employed when earning sources are more than one

[QuickSam]

The answer is 'Yes' you can. I did and got my extension, I was working on 2 contracts at the same time . This is a debated issue whether you should apply as employed or self employed. The best thing would be to check with your accountant and read the following:

Employed - if you answer yes to most of the questions you are likely to be employed:
• Do you have to do the work yourself?
• Can someone tell you where to work, when to work, how to work or what to do?
• Can someone move you from task to task?
• Do you have to work a set number of hours?
• Are you paid a regular wage or salary?
• Can you get overtime pay or bonus payments?
• Are you responsible for managing anyone else engaged by the person or company
that you are working for?

Self-employed - if you answer yes to one or more of the questions you are likely
to be self-employed.
• Can you hire someone to do the work, or take on helpers at your own expense?
• Can you decide where to provide the services of the job, when to work, how to work
and what to do?
• Can you make a loss as well as a profit?
• Do you agree to do a job for a fixed price regardless of how long the job may take?
If you can’t answer yes to any of the above questions, you are still likely to be
self-employed if you can answer yes to most of the following questions.
• Do you risk your own money?
• Do you provide the main items of equipment (not the tools that many employees
provide for themselves) needed to do the job?
• Do you regularly work for a number of different people and require business set up
in order to do so?
• Do you have to correct unsatisfactory work in your own time and at your
own expense

[ChetanOjha]

If company is earning from more than one source, that is total different from the where you are earning. You are earning form only one source i.e. your company where you are employed. Here you need to treat earnings of your company separate from your earning.

If I were you, I would still apply as employee of the company since I am paid by my company.

Hi Members,

I am applying for my extension next month, and would be applying as employed (sole director of limited company). My queston for senior member is if my Business earnings are from more than one source (Two companies paying in my business accounts ) Can I still apply as employed category with Salary slips, Dividend vouchers, Bankstatements and Accountant letter as main documents and invoice summary and company accounts as additional documents. Or I have to apply as self employed ?

Will appreciate your quick response specially Quick Scam as I read your reply posted : Fri Mar 30, 2012 6:12 pm in which you mentioned :

To keep it simple:

Limited company director's generally apply as employed if the earning is only from one source. They apply as self employed when earning sources are more than one

[Ali_Raza_2244]

Thanks QuickSam and chetanojha appreicate your views and advise, Its more clear now and I should be applying as Employee.

Thanks a lot.

QuickSam apologies for the typo I have edit the original post to put your name correct.

Regards
Ali