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ILR . Limited company and corp tax

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golu
Member
Posts: 160
Joined: Wed Mar 04, 2009 8:10 pm

ILR . Limited company and corp tax

Post by golu » Thu Feb 02, 2012 2:19 pm

hi All,
I have few questions regarding my ILR which I need to apply in June.
I was in permanent employment until last may and then I have moved to working through my own company. I am the only shareholder of the company and plan to use my dividend and salary as my proof of earnings.
questions:
1. I formed company in may and started accoutning in July. I came across few posts which says you have to provide corporation tax documents, but from what I understand I wont be having the corp tax document because my accounts are not an year old. Is corporation tax document an absolute must ?
2. I also came across few posts that says that if i dont furnish the payslip, i can claim the whole invoice amount as my income since I am the only director, is it true ?
3. Also if the corporation tax is not paide before I apply, what is the proof that I have paid my taxes ? I am on the minimum salary and hence my NIC contribution is zero, so technically my dividends are the only income where I will be paying tax.

Please advise

nnj10
Senior Member
Posts: 939
Joined: Sat Nov 18, 2006 12:39 pm
Location: England
Contact:

Re: ILR . Limited company and corp tax

Post by nnj10 » Fri Feb 03, 2012 12:15 pm

golu wrote:hi All,
I have few questions regarding my ILR which I need to apply in June.
I was in permanent employment until last may and then I have moved to working through my own company. I am the only shareholder of the company and plan to use my dividend and salary as my proof of earnings.
questions:
1. I formed company in may and started accoutning in July. I came across few posts which says you have to provide corporation tax documents, but from what I understand I wont be having the corp tax document because my accounts are not an year old. Is corporation tax document an absolute must ?
2. I also came across few posts that says that if i dont furnish the payslip, i can claim the whole invoice amount as my income since I am the only director, is it true ?
3. Also if the corporation tax is not paide before I apply, what is the proof that I have paid my taxes ? I am on the minimum salary and hence my NIC contribution is zero, so technically my dividends are the only income where I will be paying tax.

Please advise
1)No

2)No, unless you are registered as self employed, which I dont think you are as you are working through a proper LTD co. The invoice amount is the income of your company and not your personal income.

3) Just carry a letter of from your accountant explaining all these.
I would personally suggest take slightly higher salary to show some tax to come up via PAYE and get it shown on your P60, not mandatory though, just my personal opinion.

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