Employed or Self-employed?

[kannit]

Hello,

I have an appointment this week in Croydon for T1 extension. But I am still struggling to understand below conundrum. May be experienced members can provide me a straight answer.

Facts:
- I am Director of limited company with 100% share and drawing monthly Salary and some times Dividend from my company (i.e. business account).
- Accountant letter says that I am sole employee, director and 100% share holder of my company. It also states that my company is not required to may Class 2 NI.
- I am not registered with HMRC as self-employed and do not pay NI contribution through quarterly bill direct-debit. I have paid NI to HMRC when my Salary went above some threshold in last Financial Year and that too was class 1 NI.
-Client (recruitment agency acting on behalf of company I am working for) pays into the business account through self-bill as per time-sheets submitted by me on weekly basis. My company do not send them any invoices.

Question:
In my application (question B26) I have ticked that I consider myself as "Employed". Is this correct? Am I employed or self-employed?

I would need an answer today to take any corrective actions (if possible).

Regards,

[meetravi]

As far as I know U r consider as Self employed in before the eyes of UKBA, even though you are considered as employed before the eyes of your accountant or HMRC.

[kannit]

Hi Meetravi,

As far as I know U r consider as Self employed in before the eyes of UKBA, even though you are considered as employed before the eyes of your accountant or HMRC.

Your reply leaves me confused
- Should I tick employed or self-employed in B26?
- If I tick self-employed, will UKBA ask for Class 2 NI proof and HMRC welcome letter etc? I am referring to point 116 in t1-guidance notes. I do not have any such thing mentioned in this point.

http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf

Regards,

[gaurav76.5]

You would need to tick Employed and if the case workers ask you then simply say I am director of a company..

[meetravi]

Hi,
I am also in similar situation like you. I am a director , 100% share holder of a company paying class 1 NI and taking salary with dividends. I am about to apply for Tier 1 extension in couple of months. My accountant made me realise I should tick self employed even though I am considered as employed by UKBA.

For more info follow this notes

http://www.ukba.homeoffice.gov.uk/sitec ... rguidance/

[meetravi]

Let me know if you need further info.

[gaurav76.5]

Thanks meetravi for the link...I would tick self employed as well and when caseworker and if ask me I would mention I am adirector of a company and will need to pay only Class1 NI

[tier1-immigrant]

Confused..

The HMRC site mentions that if you are self employed you will pay class 2 NI
and if you are employed you pay class 1 NI.

So how can you claim self employed and paying class 1 NI ???

Seniors pls clarify whether a director and 100 % share holder of the company drawing monthly salary and dividend is considered employed or self employed ?

I think it should be employed.

Thanks.

[gaurav76.5]

in the eyes of UKBA you are self employed so you need to tick self employed...but as yiu are submitting documents from accountant so it will be clear that you have to pay class1 NI as you are drawing monthly salary...

[kannit]

Hi all,

I went in today for appointment with "Employed" ticked in application. I got the approval but I feel that case worker didn't rely on answer to B26 alone for deciding whether applicant in Employed or Self-employed. They also look how applicant in paying Tax, NI and salary and dividends.

What I did additionally was that I asked my Accountant to write following in their letter:

1. That <my name> is sole employee, director and 100% share holder of XYZ Ltd
2. That <my name> do not need to register with HMRC as self-employed
3. That <my name> do not need to pay Class 2 NI contributions

I do not know what worked for case worker but at least from my side I did not want to leave anything for their assumption. Case worker took the accountant's letter as the basis for comparison to other documents like Bank Statements, salary slips and dividend vouchers, so defintely it played a pivotal role.

I hope it helps...

Regards,