another quick query about maintenance fund

[[iD]]

Hey helping people

My HSMP extension is due (tier 1), and somewhere in last 3 months money in my personal account went just below the minimum funds requirement for me and 2 dependants

I own a limited company and have my business but I keep my earnings within the company bank accounts. So the question is, Can I show both my personal and my company accounts for maintenance funds?

Thanks in advance

Irf

[push]

Hey helping people

My HSMP extension is due (tier 1), and somewhere in last 3 months money in my personal account went just below the minimum funds requirement for me and 2 dependants

I own a limited company and have my business but I keep my earnings within the company bank accounts. So the question is, Can I show both my personal and my company accounts for maintenance funds?

Thanks in advance

Irf

If you are a shareholder of the Company the funds of the Company are not yours unless appropriately distributed to you in the form of dividends or salary etc. So in my opinion the answer is no!!

[[iD]]

Hey helping people

My HSMP extension is due (tier 1), and somewhere in last 3 months money in my personal account went just below the minimum funds requirement for me and 2 dependants

I own a limited company and have my business but I keep my earnings within the company bank accounts. So the question is, Can I show both my personal and my company accounts for maintenance funds?

Thanks in advance

Irf

If you are a shareholder of the Company the funds of the Company are not yours unless appropriately distributed to you in the form of dividends or salary etc. So in my opinion the answer is no!!

Thanks for your reply, I really appreciate it.
I am the sole owner of the company and the only director (in theory I am the company).
So if for example I can not show my company's funds as mine then does it also mean that I can not show company's earnings as mine? because I don't give myself any salary or dividend, I just earn and spend from the same account (I sell stuff on ebay).

[geriatrix]

because I don't give myself any salary or dividend, I just earn and spend from the same account (I sell stuff on ebay).

Then what 2 evidences are you sumbitting as proof of income?

regards

[[iD]]

because I don't give myself any salary or dividend, I just earn and spend from the same account (I sell stuff on ebay).

Then what 2 evidences are you sumbitting as proof of income?

regards

Company accounts and accountant letter?
I know it looks as if both the documents are coming from the same source but in page 27 of the guidance note where they've given example for kind of documents you can submit it says...

self-employed earnings within a business or company structure:
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
•a letter from his/her accountant confirming the details in those accounts.
If the applicant is not the sole shareholder of the company he/she should also provide:
•a letter from his/her accountant confirming his/her shareholding and the proportion of net profit before tax to which he/she is entitled for the earnings period claimed.

please let me know if I'm wrong cuz this is really important and it's make or break for me

Thanks

[geriatrix]

As long as you are following the guidance (appears you're), you will be Okay.

regards

[[iD]]

As long as you are following the guidance (appears you're), you will be Okay.

regards

I guess you're right but the guidance not is so confusing because at one hand it tells us to send two proof of earnings and both documents should be from a different source. But when it comes to example it's basically saying that you can submit company's account (which is made by accountant) AND show a letter from the accountant confirming those details.

CONFUSED AGAIN!

[push]

Thanks for your reply, I really appreciate it.
I am the sole owner of the company and the only director (in theory I am the company).
So if for example I can not show my company's funds as mine then does it also mean that I can not show company's earnings as mine? because I don't give myself any salary or dividend, I just earn and spend from the same account (I sell stuff on ebay).

No you are not the Company- A company is another individual entity!!
Please read the guidance carefully - Acceptable evidences as described under para 199 -201 clearly state that these need to be in your name. So if the account is the name of the Company you cant meet the criteria.

Coming back to your question as to why a differentiation has been made between treatment of earnings from 100% owned Company - In my opinion, the earnings are all yours after the Company has paid all taxes etc. - as a majority shareholder you can pass a resolution to distribute the earnings to yourself as you have clearly made those (net) earnings by being the sole owner.

Concept of maintenance funds has to do with availability of liquid funds to maintain oneself in UK. Funds held in a company do not belong entirely to the shareholders - for example if there is a security over its assets/borrowings then the lenders have first rights over the same. Similarly other mandatory expenses like taxes, insurance, fines etc. are senior to the rights of the shareholders. It makes it difficult to determine if the funds held in Company's account do really (& if so in their entirety) belong to the sole shareholder.

Hope that clarifies

[[iD]]

No you are not the Company- A company is another individual entity!!
Please read the guidance carefully - Acceptable evidences as described under para 199 -201 clearly state that these need to be in your name. So if the account is the name of the Company you cant meet the criteria.

Coming back to your question as to why a differentiation has been made between treatment of earnings from 100% owned Company - In my opinion, the earnings are all yours after the Company has paid all taxes etc. - as a majority shareholder you can pass a resolution to distribute the earnings to yourself as you have clearly made those (net) earnings by being the sole owner.

Concept of maintenance funds has to do with availability of liquid funds to maintain oneself in UK. Funds held in a company do not belong entirely to the shareholders - for example if there is a security over its assets/borrowings then the lenders have first rights over the same. Similarly other mandatory expenses like taxes, insurance, fines etc. are senior to the rights of the shareholders. It makes it difficult to determine if the funds held in Company's account do really (& if so in their entirety) belong to the sole shareholder.

Hope that clarifies

Thanks for your reply and it does clear a lot of things. As mentioned above I'll only apply for me and my wife and for the child later when I have enough funds for 3 months.

Can you advice on the documents I should send as a proof of income?

Regards