Its complicated . Read this in details
https://www.gov.uk/government/uploads/s ... rement.pdf
Appendix FM 1.7: Financial Requirement
9.8. Director of a specified limited company in the UK – specified
evidence
9.8.1. The evidence required to demonstrate income as a director of a specified limited
company in the UK is specified in Appendix FM-SE:
9. In respect of income from employment and/or shares in a limited company
based in the UK of a type specified in paragraph 9(a), the requirements of
paragraph 9(b)-(e) shall apply in place of the requirements of paragraphs 2 and
(a) The specified type of limited company is one in which:
(i) the person is a director of the company (or another company within the same group);
and
(ii) shares are held (directly or indirectly) by the person, their partner or the following
family members of the person or their partner: parent, grandparent, child, stepchild,
grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and
(iii) any remaining shares are held (directly or indirectly) by fewer than five other
persons.
(b) All of the following must be provided:
(i) Company Tax Return CT600 (a copy or print-out) for the last full financial year and
evidence this has been filed with HMRC, such as electronic or written acknowledgment
from HMRC.
(ii) Evidence of registration with the Registrar of Companies at Companies House.
(iii) If the company is required to produce annual audited accounts, such accounts for
the last full financial year.
(iv) If company is not required to produce annual audited accounts, unaudited accounts
for the last full financial year and an accountant’s certificate of confirmation, from an
accountant who is a member of a UK Recognised Supervisory Body (as defined in the
Companies Act 2006) or who is a member of the Institute of Financial Accountants;
(v) Corporate/business bank statements covering the same 12-month period as
Company Tax Return CT600.
(vi) A current Appointment Report from Companies House.
(vii) One of the following documents must also be provided:
(1) A certificate of VAT registration and the VAT return for the last full financial year (a
copy or a print-out) confirming the VAT registration number, if turnover is in excess of
£79,000 or was in excess of the threshold which applied during the last full financial
year.
(2) Proof of ownership or lease of business premises.
(3) Original proof of registration with HMRC as an employer for the purposes of PAYE
and National Insurance, proof of PAYE reference number and Accounts Office reference
number. This evidence may be in the form of a certified copy of the documentation
issued by HMRC.
(c) Where the person is listed as a director of the company and receives a salary from
the company, all of the following documents must also be provided:
(i) Payslips and P60 (if issued) covering the same period as the Company Tax Return
CT600.
(ii) Personal bank statements covering the same 12-month period as the Company Tax
3
Paragraphs 2 and 10(b) are the evidential requirements relating to salaried employment and income from
dividends.
Appendix FM 1.7: Financial Requirement
May 2016
65
Return CT600 showing that the salary as a director was paid into an account in the
name of the person or in the name of the person and their partner jointly.
(d)Where the person receives dividends from the company, all of the following
documents must also be provided:
(i) Dividend vouchers for all dividends declared in favour of the person during or in
respect of the period covered by the Company Tax Return CT600 showing the
company’s and the person’s details with the person’s net dividend amount and tax
credit.
(ii) Personal bank statement(s) showing that those dividends were paid into an account
in the name of the person or in the name of the person and their partner jointly.
(e) Evidence of ongoing employment as a director of the company or of ongoing
dividend income from the company. This evidence may include payslips (or dividend
vouchers) and personal bank statements showing that, in the period since the latest 12-
month period covered by the Company Tax Return CT600, the person’s salary as a
director of the company (or dividend income from the company) was paid into an
account in the name of the person or in the name of the person and their partner jointly.
Alternative evidence may include evidence of ongoing payment of business rates,
business-related insurance premiums or employer National Insurance contributions in
relation to the company.
