Limited companies and income proof for extn of HSMP

[NZ_engr]

Hi all
I have a query. While I am still waiting for my HSMP visa to be processed I have recently started work and am working as a contractor to a company. I am looking into setting up a limited company but I am wondering what impact this will have when I come to apply to extend my HSMP visa (if I get it). I believe that when it comes time to extending the visa you have to show evidence of the income you claimed you were going to earn in the initial application.
Working through a limited company my salary will be the minimum wage and then the rest of my earnings will be paid as dividends from the limited company. What will the home office look at in terms of my income - just my salary or the total package (salary + dividends) and what would I need to supply as proof of income??
Cheers
nz_engr

[afzalasm]

Hello,

Page 3 : HSMP Guidance LeafLet

7.3.3 It is important to note that not all income will be considered. Unearned income such as dividends from investments
(unless it is in a company in which you are active in day-to-day management), property rental income, and interest on
savings or funds received through an inheritance are not used when calculating your income.


So, Income from dividend funds are not considered as your salary, please check the guidance leaflet.


Hope this helps.

[NZ_engr]

Hi
The guidance given in Clause 7.3.3 is for proof of income when initially applying for HSMP. Clause 18.1 relates to extensions after 1 year and states the following:
You will be asked to provide evidence of your economic activity during your period of stay in the UK and evidence of
your personal earnings during the period, if you are employed. If you are self-employed a
business plan and evidence that you have established a business bank account, which has been
active, will suffice. If you have been active in employment and self-employment then you should
submit evidence of both.
So I'm still confused as to whether dividends from a limited company where i am the sole director and shareholder would be counted??
Has anyone been down this path when applying for an extension??
Cheers
nz_engr

[AtW]

(unless it is in a company in which you are active in day-to-day management)

So, Income from dividend funds are not considered as your salary, please check the guidance leaflet.

The guidance clearly states that paying yourself dividends from the company you actually run (involved in day to day active management) is just fine. Having said that its safer to bite the bullet and pay salary with all taxes on top - it does not have to be more than £35k anyway, so the rest (which is 40% tax band) can be paid as dividends.