Setting up ltd company under Tier 2(G)

[HBBB]

Hi All,

I'm on a T2(G) and have my wife as dependent. My job is on shortage list. We are going to have a baby. We are looking for a legal way to earn some extra money from home if there is any. Would help me with your comments about two scenarios below:

A) We register a ltd company without any empoyees. Shalholders being my wife and Myself. My wife is on a part time employement but she will start working from home to sell some staff online using this ltd company in her free time. We don't receive any salary and I don't work for the ltd company. Every year we get dividens out of ltd company into our accounts. I'll not be an employee nor she and she'll actually does all the work.

B) my dependant registers a limited company as 100% shareholder without any employees. Uses it for online business from home. She currently works part time as employee. Later on, she will start her maternity leave. What happens if the company is still active? Does it stop the maternity leave that is based on her part time employment?

I truly appreciate your comments in advance.

[rubyracer2]

You cannot set up a company under T2G rules. I don't think there is any restriction preventing your dependent from doing so, so Scenario B should be find.

Experts can confirm

[paradoxical]

there is no restriction on setting up a company on Tier 2. The restrictions are on working in addition to your main work.
I don't see any problem with your plan..but if you want to be absolutely certain and unless someone disagrees, you can have your dependant be the 100% shareholder.

[CR001]

You as the main tier 2 general visa holder, if setting up a Ltd co, cannot claim dividends as then you have to do self assessment to pay tax, which will flag you up as self employed, which is not permitted.

[paradoxical]

You as the main tier 2 general visa holder, if setting up a Ltd co, cannot claim dividends as then you have to do self assessment to pay tax, which will flag you up as self employed, which is not permitted.

I have seen a similar suggestion here on the forum but I am not convinced that this is correct. There could be a number of reasons that a person will need to do a self-assessment for tax purposes even when on Tier 2, and filling a self-assessment form doesn't necessarily mean self-employed. It just means that you have money earned that is not taxed. I maintain that the restriction is on actually working, but not earning extra through dividends or other investments provided you are not working for the company.