Tier 1 - Applying Early - Ltd Company - 10 Dividends Voucher

[ashvar123]

Dear all,

Could you please review my case and help me with the queries below...

Case - I am due to extend my Tier 1 Visa which Expires on June 2012 - I started taking monthly dividends from Jun 2011 thinking that I shall apply for extension on June 2012 - but for obvious reasons - I decided to apply in March 2012 for extension - I will be able cross the 95 points mark with 10 dividends and a nominal yearly salary.

Queries -
1. Is it ok if I show 10 month period income as pervious earnings or should I submit all my 12 months bank statements.. though there was no dividend taken for those spare two months in April and May of 2011?

2. My accountant mentioned that he will give me one payslip for the complete year(making his life easy) which I am going to recieve this month and make payments accordingly, can I show only 1 salary slip and 10 dividend vouchers.. is that acceptable..?

3. My Accountant did not mention any thing about paying NI.. I am not sure if I have paid NI, I remember accountant saying that I do not fall under the eligibility criteria to pay NI because I take more dividends (Pay tax) and less salary(No Tax No NI).. Please advise if this going to be an issue..

If this is an issue - would it be fine If I approach my accountant and ask to increase salary component to Pay NI..?

Regards,
Ashvar

[AccountantMatthew]

1. Is it ok if I show 10 month period income as pervious earnings or should I submit all my 12 months bank statements.. though there was no dividend taken for those spare two months in April and May of 2011?

Yes

2. My accountant mentioned that he will give me one payslip for the complete year(making his life easy) which I am going to recieve this month and make payments accordingly, can I show only 1 salary slip and 10 dividend vouchers.. is that acceptable..?

The main consideration is that the documents provided are proof of what you claim as earnings and that they match up to the bank statements you are sending in.

3. My Accountant did not mention any thing about paying NI.. I am not sure if I have paid NI, I remember accountant saying that I do not fall under the eligibility criteria to pay NI because I take more dividends (Pay tax) and less salary(No Tax No NI).. Please advise if this going to be an issue..

If this is an issue - would it be fine If I approach my accountant and ask to increase salary component to Pay NI..?

The main consideration here is that you are paying the correct amount of tax/NI so that you are complying with the tax rules/regulations. If you are not liable for income tax/NI on your salary level and not paying it then there shouldn't be an issue. The only issue is if you should be paying tax/NI on your salary level but aren't.

Your accountant can explain further in depth here as s/he'll have information that we don't. Ditto with regards to discussing/applying any salary increase.

[ashvar123]

Many thanks for the response Matthew.. hope this information helps out others as well..

[mitulkumar]

Many thanks for the response Matthew.. hope this information helps out others as well..

Hi Matthew,
sorry for asking something out of context but thought you will be helpful.
i have 1 question to ask. if we are taking dividend than is it necessary to have corp. tax money of the dividend into the business account.

I have taken dividend regularly from my business account but as I was needed money i also took cash from my business account. so there was not much money left any time. I have paid all the money i have taken from my business account by the end of the tax year and will pay corp. tax on time.

i have 1 question as not any money was left in my business account will dividend taken during this period will be accepted by UKBA during my visa extension.

[mitulkumar]

Hi Matthew,
sorry for asking something out of context but thought you will be helpful.
i have 1 question to ask. if we are taking dividend than is it necessary to have corp. tax money of the dividend into the business account.

I have taken dividend regularly from my business account but as I was needed money i also took cash from my business account. so there was not much money left any time. I have paid all the money i have taken from my business account by the end of the tax year and will pay corp. tax on time.

i have 1 question as not any money was left in my business account will dividend taken during this period will be accepted by UKBA during my visa extension.

[AccountantMatthew]

I'm gathering that you've got everything sorted out now Mitul judging by the http://www.immigrationboards.com/viewto ... ht=#594878 thread.

Definitely get advice regarding the distribution of dividends (and how it all works) and paperwork from your existing accountant on this as s/he is the closest to your affairs. If the dividend was correctly declared (i.e. is a legal distribution) then there shouldn't be an issue.

All the best.