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Earnings through Limited Company for HSMP

Archived UK Tier 1 (General) points system forum. This route no longer exists.

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unkybob
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Joined: Tue Sep 12, 2006 7:31 am

Earnings through Limited Company for HSMP

Post by unkybob » Tue Sep 12, 2006 7:42 am

Hi,

I'm having trouble finding out how to prove income earnt in the UK through a limited company. I know my earnings are enough for the application, but I don't know what the best documents are to use - something through either the employer, the recruitment agent or the limited company adminstrator (in my case 1st Contact). 1st Contact have so far only been able to provide me with a P60 and a Dividend Statement, both of which more-or-less show the actual cash they have paid me, not my Gross Earnings.

Any ideas?

Thanks

John
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Posts: 12320
Joined: Wed Nov 10, 2004 2:54 pm
Location: Birmingham, England
United Kingdom

Post by John » Tue Sep 12, 2006 8:48 am

Any ideas? Yes, you need to start understanding the legal difference between the Limited Company you work for (and own?) and you personally.

Your income is what the company has paid you, as shown on the form P60 and the "Dividend Statement". Nothing more ... nothing less!

If "your" limited company has earned more, because of your efforts, that does not make that your income. There is bound to be a difference between those figures, if only because of company admin fees, and Corporation Tax payable by the company, and indebtedness of the company like that needs to be taken into account before the company can pay you dividends.
John

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