Tier 1 general extension refused, suggestions for appeal ple

[Ssauk]

Hello all,
I had applied for tier 1 general extension in June 2012 and claimed 25 points for previous earnings from salary + net profit as director/sole trader of my own limited company.

My tier 1 general initial application in 2010 was approved on the same ground but this time they refused and the case worker said in her statement that " hmrc deem a limited company to be a separate legal entity from the migrant and the immigration rules advised that salaried employees would include director of limited companies. As a result, directors of limited companies can only claim previous earnings based on salary or dividend. They cannot claim for net profit. Therefore, we have only been able to consider your salaried earnings from your company, which is £5200. This is not sufficient for the award of any points in this area."

But tier general guidance says that we can show net profits of our company as previous earnings. So please let me know that there is any possibilities to win this case in appeal and what kind of proof do we need to show with our appeal. Thanks

[samira_uk]

I think she is right. Where did you find that net profit can be counted? I think net profit can be considered for self employed people.

[Ssauk]

I think she is right. Where did you find that net profit can be counted? I think net profit can be considered for self employed people.

So why did they approved my initial application on the same grounds, salary + net profit?

[Ssauk]

I think she is right. Where did you find that net profit can be counted? I think net profit can be considered for self employed people.

Tier 1 general guidance says

Self-employed earnings within a business or company structure:[/size]
If an applicant has worked in a self- employed capacity in his/her own business or company structure and has chosen to keep his/her earnings within the business or company, he/she could provide:
• business or company accounts that meet statutory requirements and show the
net profit made for the earnings period claimed; and
• personal/business bank statements

[Ssauk]

Hello all,
I had applied for tier 1 general extension in June 2012 and claimed 25 points for previous earnings from salary + net profit as director/sole trader of my own limited company.

My tier 1 general initial application in 2010 was approved on the same ground but this time they refused and the case worker said in her statement that " hmrc deem a limited company to be a separate legal entity from the migrant and the immigration rules advised that salaried employees would include director of limited companies. As a result, directors of limited companies can only claim previous earnings based on salary or dividend. They cannot claim for net profit. Therefore, we have only been able to consider your salaried earnings from your company, which is £5200. This is not sufficient for the award of any points in this area."

But tier general guidance says that we can show net profits of our company as previous earnings. So please let me know that there is any possibilities to win this case in appeal and what kind of proof do we need to show with our appeal. Thanks

Any comments please from seniors, moderators or anyone else!

[Mayurc]

Here are Scenarios about Earnings:

1. Fully Salaried Incomes from Employment
2. Salaried + Self-Employed Net Profit
3. Salary + Dividend from UK Ltd Company


Self Employed business man operates under UTR No and file their yearly self assessment return to HMRC every year and pays tax as Income Tax.

LTD Company operates as per Companies Law UK and files Corporation Tax on Net Profit.

Tier 1 Guideline have made clear which should have been included in previous earnings. I am surprised on what ground your previous visa was granted.

If they have given you right of appeal then contact Solicitor for your help. and All the Best

[samira_uk]

I think she is right. Where did you find that net profit can be counted? I think net profit can be considered for self employed people.

Tier 1 general guidance says

Self-employed earnings within a business or company structure:[/size]
If an applicant has worked in a self- employed capacity in his/her own business or company structure and has chosen to keep his/her earnings within the business or company, he/she could provide:
• business or company accounts that meet statutory requirements and show the
net profit made for the earnings period claimed; and
• personal/business bank statements

Have you provided letter that show your share in the company? or you only provided net profit accounts?

[Ssauk]

I think she is right. Where did you find that net profit can be counted? I think net profit can be considered for self employed people.

Tier 1 general guidance says

Self-employed earnings within a business or company structure:[/size]
If an applicant has worked in a self- employed capacity in his/her own business or company structure and has chosen to keep his/her earnings within the business or company, he/she could provide:
• business or company accounts that meet statutory requirements and show the
net profit made for the earnings period claimed; and
• personal/business bank statements

Have you provided letter that show your share in the company? or you only provided net profit accounts?

Yes I have provided info through accountant letter that I'm sole share holder.

[Ssauk]

Here are Scenarios about Earnings:

1. Fully Salaried Incomes from Employment
2. Salaried + Self-Employed Net Profit
3. Salary + Dividend from UK Ltd Company


Self Employed business man operates under UTR No and file their yearly self assessment return to HMRC every year and pays tax as Income Tax.

LTD Company operates as per Companies Law UK and files Corporation Tax on Net Profit.

Tier 1 Guideline have made clear which should have been included in previous earnings. I am surprised on what ground your previous visa was granted.

If they have given you right of appeal then contact Solicitor for your help. and All the Best

Does it means that there is nothing like following scenario.
Salary + limited company net profits.
So they done mistake by approving my initial application.
More comments and suggestions please!

[samira_uk]

I think I made a mistake and the caseworker was wrong.

[Ssauk]

I think I made a mistake and the caseworker was wrong.

How, can you explain a bit please?

[samira_uk]

The explanation is that I am thinking you are right. As you have a sole shareholder and this is confirmed in accountant letter, you can claim the net profit of the company as stated in the guidances and you yourself copied that part from guidance.

[Ssauk]

The explanation is that I am thinking you are right. As you have a sole shareholder and this is confirmed in accountant letter, you can claim the net profit of the company as stated in the guidances and you yourself copied that part from guidance.

Yes thnx, that's I was looking for. Please any more comments, any docs I need o submit with appeal?

[Mayurc]

The explanation is that I am thinking you are right. As you have a sole shareholder and this is confirmed in accountant letter, you can claim the net profit of the company as stated in the guidances and you yourself copied that part from guidance.

Yes thnx, that's I was looking for. Please any more comments, any docs I need o submit with appeal?

My apology...I just read the guidance carefully. It says on Page no 63

If the applicant’s earnings are a share of
the net profit of the company, the letter
should also explain this.

For more information how you can prove is read page no 63.[/i]

[Ssauk]

The explanation is that I am thinking you are right. As you have a sole shareholder and this is confirmed in accountant letter, you can claim the net profit of the company as stated in the guidances and you yourself copied that part from guidance.

Yes thnx, that's I was looking for. Please any more comments, any docs I need o submit with appeal?

My apology...I just read the guidance carefully. It says on Page no 63

If the applicant’s earnings are a share of
the net profit of the company, the letter
should also explain this.

For more information how you can prove is read page no 63.[/i]

Thanks for your research and efforts. But I have already submitted the said accountant letter. Any other proves please.

[Ssauk]

Please any more suggestions, bcoz short time to submit appeal.

[samira_uk]

Please ask to a solicitor and apply for appeal. Here there are some ordinary and non professional people who share experience. No one can give you a clear reply unless s/he view your case carefully.

[Ssauk]

Please ask to a solicitor and apply for appeal. Here there are some ordinary and non professional people who share experience. No one can give you a clear reply unless s/he view your case carefully.

Talked to some solicitors but you know holidays season. Does anyone know about good solicitor for this kind of appeal, please let me know. Thanks

[globetrotter_ks]

Yes mate you was lucky for your first approval coz for
Salary you need salary slip and for directors income you have to submit dividend vouchers and not net profit shown on balance sheet.

[samira_uk]

It is wrong. According to the rules that he mentioned already, net profit can be counted as an income provided that you have enough documents for that.

[mulderpf]

You are a company director, not self-employed.

The HMRC website explains this in Check that you are self-employed.

If you're a company director, you count as an employee rather than self-employed.

[Ssauk]

You are a company director, not self-employed.

The HMRC website explains this in Check that you are self-employed.

If you're a company director, you count as an employee rather than self-employed.

What about the following piece of information? Isn't it in my favor?

The tax and National Insurance contributions you pay depend on whether you're self-employed or an employee - so it's important to check that you really are self-employed. You're usually self-employed if you can answer 'yes' to the following:
Do you have the final say in how the business is run?
Are you responsible for meeting any losses as well as taking any profits?
Can you hire someone on your own terms to do work for you?
Do you risk your own money?
Do you provide the main items of equipment you need to do your job?
Do you agree to do a job for a fixed price regardless of how long it may take?
Can you decide what work to do, how and when to work and where to provide the services?
Do you regularly work for a number of different people?
Do you have to correct unsatisfactory work in your own time and at your own expense?
You can be self-employed for some of your work, but an employee of another business as well.

[Hottie]

We just had our approved and my husband has got 99% share of the company. He submitted payslips and dividend vouchers.
I think you're lucky to get away with the first approval. But I'll still advice you speak to an immigration lawyer for more clearity before sending in your docs for apeeal.