Limited Company 2 Directors - Tier 1 extension, different dividends

[vbirla]

Hi

I have a limited company with 50 - 50 split between me and my wife.

I am going for Tier 1 extension and my wife is on tier 1 dependent. I have given all the dividends equally to both of us, but not the last one (amount 9500 pounds). Last dividend is given to me only as there is not enough profit in the company on the day gave the dividend, to give the same dividend to my wife. I wanted to take this dividend to satisfy the 40K salary limit for my Tier 1 visa extension.

Now I have complete salary and dividends to satisfy the Tier 1 extension, but if in case the Case worker will check the company accounts he will be able to know that the last dividend was not given to my wife.

Will this be a problem ?

I am planning to give the same amount of dividend to my wife next month when the payments of next month will come. (but that period will be outside of the 12 month period for which I am showing my earnings)

I am not sure whether UKBA will check how the company is operating and giving the same share to both directors or not, Or is this just the responsibility of HMRC.

Please guide me as I am going to extension on same day service next week

Thanks

[northernladuk]

Yes it is a problem. Unless your wife is on a different class of share you must give her the same. You could do a dividend waiver but HMRC will not like this at all. Try doing for a search on dividend waiver on here. You have a 50-50 split so dividends must be split 50-50. Do it properly or don't do it all. Fudging your accounts just to stay in the country is not only going to get you in trouble with the tax man but also could result in you failing your application.

I don't know how visa stuff works but I would hope to god the UKBA will do extensive checks including with HMRC.

[vbirla]

Thanks for your reply

The other option with me is to transfer the share 100 to me and then claim the complete dividend. Will it be fine if I become the 100 owner.

And what is the best way to transfer the shares.

Please guide

Thanks

[Wanderer]

The other option with me is to transfer the share 100 to me and then claim the complete dividend. Will it be fine if I become the 100 owner.
And what is the best way to transfer the shares.

We can't really advise you on the full details of your accounts but generally speaking, you have made a big mistake by paying one shareholder a dividend and not paying the same dividend to the other shareholder unless they have signed a dividend waiver though dividend waivers have problems too as Northernladuk says.

If you make a mistake then you could end up liable for thousands in tax. Make sure your accountant understands immigration law so you can be paid in the correct way to extend your visa. It may be that you can count dividends towards your earnings but if you mess it up it may mean you breach your visa conditions and don't get it extended or perhaps get refused indefinite leave to remain when you apply.

You need to get an accountant and your immigration advisor to talk to each other and look at all your circumstances so they can advise you on what to do. If you are earning 40k then you can afford to do it too, don't try to do it yourself or you will make an even worse mess of it than you have.

[stek]

UK Border Agency | Dividend vouchers

[Scoobos]

You need to get an accountant and your immigration advisor to talk to each other and look at all your circumstances so they can advise you on what to do. If you are earning 40k then you can afford to do it too, don't try to do it yourself or you will make an even worse mess of it than you have.

What he said and NLUK too.

[northernladuk]

Thanks for your reply

The other option with me is to transfer the share 100 to me and then claim the complete dividend. Will it be fine if I become the 100 owner.

And what is the best way to transfer the shares.

Please guide

Thanks

I presume you don't have an accountant? Big mistake number 3. Go get an accountant and get them to help you cause you are up to your neck in it right now.#

I guess with your slack attitude to your business you will expect to transfer the shares back to your wife for next year. That is going to have HMRC round like a shot. Fudging share around for anything other than business reasons is raising a nice big red flag.

[DaveB]

Hi

I have a limited company with 50 - 50 split between me and my wife.

I am going for Tier 1 extension and my wife is on tier 1 dependent. I have given all the dividends equally to both of us, but not the last one (amount 9500 pounds). Last dividend is given to me only as there is not enough profit in the company on the day gave the dividend, to give the same dividend to my wife. I wanted to take this dividend to satisfy the 40K salary limit for my Tier 1 visa extension.

Now I have complete salary and dividends to satisfy the Tier 1 extension, but if in case the Case worker will check the company accounts he will be able to know that the last dividend was not given to my wife.

Will this be a problem ?

I am planning to give the same amount of dividend to my wife next month when the payments of next month will come. (but that period will be outside of the 12 month period for which I am showing my earnings)

I am not sure whether UKBA will check how the company is operating and giving the same share to both directors or not, Or is this just the responsibility of HMRC.

Please guide me as I am going to extension on same day service next week

Thanks

You also appear to be confusing Dividends with Salary. They are not the same thing. As I understand it you must be able to show a salary of at least £40,000. Dividends are *not* salary and you cannot use them to make up the salary limit for the visa requirements.

[stek]

You also appear to be confusing Dividends with Salary. They are not the same thing. As I understand it you must be able to show a salary of at least £40,000. Dividends are *not* salary and you cannot use them to make up the salary limit for the visa requirements.

You can, see my UKBA link above.

Dividend vouchers

Evidence of your previous earnings
This page explains the requirements for dividend vouchers that you send to support your application to the highly skilled worker category (Tier 1 General) under the points-based system to work in the United Kingdom.

Full details of all requirements are in the immigration rules at paragraphs 245A-F of part 6A, and Appendix A, which you can find on the right of this page. You must read the policy guidance before you apply under this category. You can download the guidance and application form from the Applying section.

What the dividend vouchers must show
Dividend vouchers must show the amount of money paid by the company to you, normally from its profits. They should confirm both the gross and net dividend paid. You should provide a separate dividend voucher or payment advice slip for each dividend payment, to cover the whole period claimed.

[northernladuk]

You can, see my UKBA link above.

Dividend vouchers must show the amount of money paid by the company to you, normally from its profits.

This line makes me smile. Are they condoning taking dividends from anything else but profit?