Salary Payments & HSMP

[diamante]

Hi Guys,

I'm working in the UK on an HSMP. I have my own Limited company set up. Would anybody know if I have to pay myself a certain minimum salary in addition to what's required for Tax / NI purposes to maintain my HSMP?

There's a minimum income stipulation of 40K for the renewal of the HSMP and my accountant is of the opinion that both Salary and Dividends would work for that calculation. But since he wouldn't have had any experience in this, wanted to get a second opinion. Anybody else in this situation?

Also, do I have to maintain a steady payment cycle? Currently, I've been paying myself ad hoc.

[boredsenseless]

Usually income in the form of dividends is not included in these figures as they could be earned from any investment not just your 'employment'.

It would seem odd to give someone a HSMP if they could guarantee to make 40K in dividends on say their HSBC shares.

If I required to earn a certain figure to be allowed to reside in the UK I would make sure I actually earnt it, and that there were no 'grey' areas since you only save a few K in tax but you could be quickly shipping your stuff back home if you get it wrong.

I guess the only people who can really answer your questions are the immagration department or an immigration lawyer.

Ask the quesions quickly though as they will waste no time removing you if you don't meet the earning criteria.

[TheFaQQer]

Ask the quesions quickly though as they will waste no time removing you if you don't meet the earning criteria.

Since when has this government removed illegal immigrants at all, never mind quickly???

[NotAllThere]

Criminals and parasites they'll take their time over. But you can bet your bottom dollar that if someone is actually contributing to the UK economy, they'll be out of the country pdq over the slightest irregularity.

[Bluebird]

Criminals and parasites they'll take their time over. But you can bet your bottom dollar that if someone is actually contributing to the UK economy, they'll be out of the country pdq over the slightest irregularity.

or forced to buy a football club...

[bjayakody]

Dividends from your company, where you are sole director is fine. It's been setup to handle IT contractors now. You can only claim dividends from a company you are working in, and directly responsible for the income.

Run through the info on the site for HSMP, it will outline it for you.

But you will have to jump through a few hoops when it comes time to renew (which I just did).

Company books.
Company registration.
All signed contracts.
All invoices.
Company and personal bank accounts.
Letter from accountant.
If you've finished a tax year, it's a little easier, but not by much.

[Moscow Mule]

Bloody foreigners, coming over here stealing our jobs.

[NotAllThere]

Only cos their better value for money than you.

[Bluebird]

Bloody foreigners, coming over here stealing our jobs.

Enoch was right...

[SueEllen]

Enoch was right...

Racist!