UK Settlement Visa Finance Question

[solent01]

I'm finding the finance requiremants a little confusing, could someone put me right.

I'm a director of a Ltd company along with my father, I own 90% of the shares. I draw a directors salary just under the tax limit and make up the rest of my salary via dividends.

I'm finding the requirements a Iittle hard to follow. They say in one section I can't count non-employment income (dividends) as proof of earnings because of the ownership of the Ltd company, yet under Cat. F & G I can count my directors income and dividends.

Would someone with a better understanding of the rules please comment?

[ThaiVisaExpress]

Which requirements are you looking at ? It can be confusing, and this guidance may be more helpful. As you can see from Sections 4.1.2 and 9.3.5, you can combine income from self-employment ( salary) and non-employment income ( dividends). You will need to provide all of the evidence listed in Section 9.8 of that guidance.

Tony M

[solent01]

I've got section-FM-1.7 dated April 2013 in a .pdf

[solent01]

Thanks TVE, think I'm going to make my accountant a little busy.

[ThaiVisaExpress]

Did you get the guidance. It wasn't attached to my post. Here it is :

Section-FM-1.7 Financial Requirement - April 2013.pdf

[Kevin1908]

"I'm a director of a Ltd company along with my father, I own 90% of the shares. I draw a directors salary just under the tax limit and make up the rest of my salary via dividends.

I'm finding the requirements a Iittle hard to follow. They say in one section I can't count non-employment income (dividends) as proof of earnings because of the ownership of the Ltd company, yet under Cat. F & G I can count my directors income and dividends"

May be what they are trying to say is that income from dividends is not earned income but it is never the less income. If it isn't income then I want all the tax back that I have paid on my dividends. Remember that as a 90% shareholder, on paper at least, 90% of the dividend payments go to you.

[bobrussell]

No expert but 'non-employment' dividends suggest returns from shares etc while directors income is frequently a mixture of income and dividends to be tax efficient but add up to your real income.

Worth checking with your accountant. This is a pretty standard set up for directors of Ltd companies.

I cannot see why non-business dividends should not be counted as they are a form of income and HMRC are pretty interested on taking their share!