Starting up my own limited company will this affect her visa?

[JusticeFT96]

Hi there,

I am about to start contract work later this month however if I setup a limited company I get paid a lot more and I also like some of the other perks that come along with it.

If I create a limited company am I able to list myself an employee and pay myself a wage? I will be the director obviously but I will also be an employee doing the work. Would this be classed as self employed or full time employment?

I am thinking that even though the money would be better and the other perks having to wait 12 months to do my books rather than just 6 months pay slips just wouldnt be worth it.

If anyone has any knowledge on this I would really appreciate it

Cheers

[7by7]

It would help you get proper replies if you said what country you are asking about.

[JusticeFT96]

Sorry the UK also married

[Kevin1908]

Sorry the UK also married

In the eyes of HMRC you will be an employee. In the eyes of UKBA you will be self employed, but what do they know. By the way electing to be an employee and operating PAYE isn't an option. Paying a proportion of earnings as a dividend is however.

[JusticeFT96]

So it could be possible to be classed as "employed"? The work starts in a few weeks and being a limited company earns me about £12,000 more a year minimum so its something I really want to do but I really cant face being away from my wife and child for another 6 months after her next tourist visa has finished and I have to wait another 6 months before applying again.

[Tony M]

If you are the director of your own limited company, then you are self-employed. You can, of course, pay yourself a salary and dividends, but you are still self-employed for UKV&I purposes. As such, you will need to show a full company year tax return, and evidence of tax paid, plus a good deal more. If I remember correctly, you are a non-tax paying poker player who was moving to Ireland ?

[JusticeFT96]

You are correct however I started an NDT course a month ago in ultrasonic testing and the work starts later this month. Trying to prove poker earnings as revenue was a losing battle.

[Tony M]

I have no idea what an NDT course is. But, if it gives you a job that will pay enough to meet the financial requirement after 6 months, then I think that is the way to go. Then start your own business once the visa is issued. Presumably you can still make your millions from online poker playing, so there will be little loss of income.

[JusticeFT96]

I wont have much time for poker to be honest, whilst doing the course which was 9-5 when returning I just didn't have the mental energy to play. I am thinking about starting the company, do 6 months work here then hopefully get 6 months work somewhere in Europe which would make it a lot easier to get a visa for her then after 12 months she can return to Thailand and apply for a settlement visa. Its just kinda ruined my plans to work for 6 months then she can apply for a visa and return pretty quickly. Why oh why is it so hard for us to get a visa in the UK

PS NDT is non destructive testing, usually used in the aerospace or oil business. Things like checking pipes for problems using ultra sound or other methods.

[stoneyboy]

I have no idea what an NDT course is. But, if it gives you a job that will pay enough to meet the financial requirement after 6 months, then I think that is the way to go. Then start your own business once the visa is issued. Presumably you can still make your millions from online poker playing, so there will be little loss of income.

NDT would be non destructive testing.

The testing of completed welds by means of ultra sonic,X-ray or dye penetrant.

As well as visual inspection.

[Tony M]

If you plan to go to work in Europe, then do that first. Your wife is entitled to join you there ( as tye spouse of an EU citizen), and you can then both re-locate to the UK under the "Surinder Singh" route ( another EU entitlement). Using the Surinder singh route from Europe to UK means that you don't have to meet any financial requirement ( which is what you were going to do from Ireland, I think ?).

[JusticeFT96]

Yeah, I think that route may be better, as I am new in the industry the next 3 months work will be vital to me, it will give me experience and get my foot in the door. The company I will be doing the work for has offices in Rotterdam so I am hoping once I have been there for 3 months I can ask them if they will get me a contract in Holland and then onto the Surinder Singh.

[Jay Sata]

Congratulations on your new plans.

The problem with self employment using your own limited company is the tax system favours paying yourself the minimum wage and the rest in dividends.

However you'll have to bit the bullet and pay yourself enough to satisfy the £18,600 rule for the visa. That of course means paying more tax which we all hate. However once she has the visa you can then go back down the dividend route and also pay her under the tax threshold of around 10k saving more of your hard earned money. As I've said before an accountant will sort this out for you, is tax deductible, and will cost less than £500 a year.

[Tony M]

Congratulations on your new plans.

The problem with self employment using your own limited company is the tax system favours paying yourself the minimum wage and the rest in dividends.

However you'll have to bit the bullet and pay yourself enough to satisfy the £18,600 rule for the visa. That of course means paying more tax which we all hate. However once she has the visa you can then go back down the dividend route and also pay her under the tax threshold of around 10k saving more of your hard earned money. As I've said before an accountant will sort this out for you, is tax deductible, and will cost less than £500 a year.

So, you are back again, making more useless and uninformed comments, and giving bad advice. I have said before, if you want to give advice to people who have concerns, then make sure it is correct. You try to come across as a person who has knowledge of immigration requirements, but you are sadly lacking in all areas. Please, for everyone's sake, and to save visa applicants from making errors in their applications, stop giving any advice in this forum.

[technologybytes]

Sorry to piss on your cornflakes, so to speak.. but if you need to ask advice on Thai Visa for that sort of Tax/Company law related to the United Kingdom, you are already doomed to failure. Do yourself a big favor and get some reliable local advice in the UK.

[Thormaturge]

A self-employed person is exactly that, someone who works for theirself.

A limited company is a separate legal entity and therefore you will not be self employed, but an employee of that legal entity. As such you have a choice of paying yourself a salary or dividends.

Any salary would be subject to PAYE taxation, and the company would have to pay employer's NIC too.

Any profit the company makes may be distributed to the shareholder(s) as dividends, in which case it does not attract NIC or basic rate income tax, since the company will have already paid corporation tax on the profit. Many people with their own company therefore pay themselves a peppercorn salary and live on distributions of the profits.

WARNING

If you are going to be working for just one client/customer then you will only be permitted to deduct 5% of your gross income as expenses, and the remainder will be subject to PAYE including employer's NIC. This may well be why you are being offered more money .. to shift the cost onto you.

I strongly recommend you obtain professional advice before proceeding.

[pigeonjake]

A self-employed person is exactly that, someone who works for theirself.

A limited company is a separate legal entity and therefore you will not be self employed, but an employee of that legal entity. As such you have a choice of paying yourself a salary or dividends.

Any salary would be subject to PAYE taxation, and the company would have to pay employer's NIC too.

Any profit the company makes may be distributed to the shareholder(s) as dividends, in which case it does not attract NIC or basic rate income tax, since the company will have already paid corporation tax on the profit. Many people with their own company therefore pay themselves a peppercorn salary and live on distributions of the profits.

WARNING

If you are going to be working for just one client/customer then you will only be permitted to deduct 5% of your gross income as expenses, and the remainder will be subject to PAYE including employer's NIC. This may well be why you are being offered more money .. to shift the cost onto you.

I strongly recommend you obtain professional advice before proceeding.

national insurance is under 30pounds a year,

there is far more benifits from being ltd company

[Basil B]

national insurance is under 30pounds a year,

there is far more benifits from being ltd company

???

If you're employed

If you're employed you pay Class 1 National Insurance contributions. The rates are:

• if you earn more than £149 a week and up to £797 a week, you pay 12 per cent of the amount you earn between £149 and £797
• if you earn more than £797 a week, you also pay 2 per cent of all your earnings over £797

You pay a lower rate if you're a member of your employer's contracted-out pension scheme.

Your contributions are deducted from your wages by your employer.

If you're self-employed

If you're self-employed you pay Class 2 and Class 4 National Insurance contributions. The rates are:

• Class 2 National Insurance contributions are paid at a flat rate of £2.70 a week
• Class 4 National Insurance contributions are paid as a percentage of your annual taxable profits - 9 per cent on profits between £7,755 and £41,450, and a further 2 per cent on profits over that amount.

If your profits are expected to be less than £5,725 you may not have to pay Class 2 National Insurance contributions.

Your Class 2 National Insurance contributions payments are due on 31 January and 31 July, the same as a Self Assessment tax bill. You pay Class 2 National Insurance contributions either monthly or six monthly by Direct Debit – follow the first link below for more information about payment dates.

You pay Class 4 National Insurance contributions when you pay your Income Tax.

http://www.hmrc.gov.uk/ni/intro/basics.htm

[7by7]

Sorry to piss on your cornflakes, so to speak.. but if you need to ask advice on Thai Visa for that sort of Tax/Company law related to the United Kingdom, you are already doomed to failure. Do yourself a big favor and get some reliable local advice in the UK.

As I read it, the OP is not asking about UK tax and/or company law; he is asking about the best way of paying himself to suit what can be the very complicated financial requirements for a self employed sponsor of a family settlement visa.

Such questions is what this forum is for.

[JSatGS]

OP, Your title was "Starting up my own limited company will this affect her visa?" If that is what you are asking, I can share my experience from the US as that is where I am. I am a cofounder in a US tech startup with majority shares. We are an LLC, in process of converting to a C-Corp and closing a Series A round at present. It's too much to share at this point other than I understand the ques and had similar concerns.

Long and short of it, my wife was approved for her US visa yesterday to come to the US with me next week. Our process was smooth with no unusual issues because I am a cofounder of an LLC tech company that happens to list myself as an employee for tax purposes. They did ask the valuation and I did have to include personal tax returns and a letter stating if they wanted corp tax returns I would provide upon request. (I am not one that thinks that a low level bureaucrat needs to be snooping my corp business when they are simply supposed to be documenting a real relationship and ability to support the person). They did not ask for further.

As for the rest of the random posts here...enjoy reading if you have the time as a founder driving your company forward.

Good luck and best of traction with your company! if you have other ques, PM me and I can respond or can call you if you provide a phone number.

[Jay Sata]

Congratulations on your new plans.

The problem with self employment using your own limited company is the tax system favours paying yourself the minimum wage and the rest in dividends.

However you'll have to bit the bullet and pay yourself enough to satisfy the £18,600 rule for the visa. That of course means paying more tax which we all hate. However once she has the visa you can then go back down the dividend route and also pay her under the tax threshold of around 10k saving more of your hard earned money. As I've said before an accountant will sort this out for you, is tax deductible, and will cost less than £500 a year.

So, you are back again, making more useless and uninformed comments, and giving bad advice. I have said before, if you want to give advice to people who have concerns, then make sure it is correct. You try to come across as a person who has knowledge of immigration requirements, but you are sadly lacking in all areas. Please, for everyone's sake, and to save visa applicants from making errors in their applications, stop giving any advice in this forum.

So what is incorrect?

If you own a ltd company and pay yourself as an employee just under the tax threshold you can then claim the rest as dividends and pay tax at a lower rate than straight forward self employment. In the case of this guy it's also worth exploring the options available of having an offshore company based in somewhere like the Channel Islands. If he wants a straightforward simple spouse visa in the UK as long as he ticks all the boxes and earns over £18,600 he's home and dry.

I've said many times before that an accountant will save you a fortune and point you in the right direction for avoiding tax which is quite legal.

I don't claim to be an accountant which is why I have employed one for decades.

Indeed if he works in Rotterdam for six months and then does some work in Asia he can claim airfares etc as well. His company can employ his wife on the same basis and pay her just under the tax threshold and the rest in dividends. He can claim for a car minus personal mileage.

Lot's of offshore workers use this system.

I take it you don't own a Ltd company Tony?

Edited September 11, 2013 by Jay Sata

[Jay Sata]

Sorry to piss on your cornflakes, so to speak.. but if you need to ask advice on Thai Visa for that sort of Tax/Company law related to the United Kingdom, you are already doomed to failure. Do yourself a big favor and get some reliable local advice in the UK.

As I read it, the OP is not asking about UK tax and/or company law; he is asking about the best way of paying himself to suit what can be the very complicated financial requirements for a self employed sponsor of a family settlement visa.

Such questions is what this forum is for.

I see you have never owned or run a company 7by7 so how can you comment?

UK tax and company law are an important consideration for him and a limited company is the best way to go for both saving tax and paving the way to complying with getting the £18600. To achieve that sum it's possible to pay no tax at all!

In general terms tradesmen earning around the average wage tend to be self employed whilst those earning a lot more can not afford that route as a limited company offers benefits such as using your annual tax free capital gains allowance.

http://www.hmrc.gov.uk/rates/cgt.htm#1

Like many people with a limited company I have enjoyed the perks for years. This has included lots of travel, company car (always lease) and managed to run a light aircraft for the best part of 30 years.

I keep stressing that an accountant will open up the wonders of tax saving and other benefits of having a limited company.

The most important benefit on something like NDT is that if a client sued then only the company is liable and not you.

The average self employed plumber or builder risks losing everything if a client sues

Edited September 11, 2013 by Jay Sata

[Somchai Mao]

I have sub-contracted under my own limited company for over 10 years and would never go back to PAYE. Make sure you do your research thoroughly, there is a lot to it. Seen many guys get into problems with it. The crucial thing is good advice and being responsible. Don't try and fiddle the taxman because if you do and he finds out, he'll make your life hell.

Good luck!

[pigeonjake]

ive just coppied and paisted this,

What rates of National Insurance apply to limited company employees?

You may not have to pay any NICs at all, depending on the level of salary you decide to pay yourself as a limited company director. The rates quotes here are for the 2013/14 tax year.

In fact, if you earn less than £149 per week, you are not liable to pay any NICs at all.

1. Employees’ NICs

As an employee of your limited company, you pay Class 1 National Insurance Contributions

You pay 12% of earnings between £149 and £797 per week.
You pay 2% on any earnings above £797 per week.

These contributions are deducted via your payroll each month (which your accountant sets up on your behalf).

[Tony M]

Jay Sata says :

So what is incorrect?

If you own a ltd company and pay yourself as an employee just under the tax threshold you can then claim the rest as dividends and pay tax at a lower rate than straight forward self employment. In the case of this guy it's also worth exploring the options available of having an offshore company based in somewhere like the Channel Islands. If he wants a straightforward simple spouse visa in the UK as long as he ticks all the boxes and earns over £18,600 he's home and dry.

I've said many times before that an accountant will save you a fortune and point you in the right direction for avoiding tax which is quite legal.

I don't claim to be an accountant which is why I have employed one for decades.

Indeed if he works in Rotterdam for six months and then does some work in Asia he can claim airfares etc as well. His company can employ his wife on the same basis and pay her just under the tax threshold and the rest in dividends. He can claim for a car minus personal mileage.

Lot's of offshore workers use this system.

I take it you don't own a Ltd company Tony?

What is incorrect is that, firstly, the OP is asking about qualifying as a sponsor for his wife's settlement visa, not asking about how he does his company accounts. This is a visa forum, not a tax advice forum, and you advised him that :

"However you'll have to bit the bullet and pay yourself enough to satisfy the £18,600 rule for the visa. That of course means paying more tax which we all hate. However once she has the visa you can then go back down the dividend route........ "

Secondly, and correctly, the OP does not have to pay himself a salary of 18,600 GBP a year to meet the requirements if he is a director of his own company. He can pay himself whatever he likes, and meet the rest of the financial requirement from dividend payments. So, your advice that he must pay himself "enough" to meet the 18,600 GBP a year threshold, and that he can then go back down the dividend route is totally wrong. If the OP took your advice he could be making serious errors. I can certainly see why you "don't claim to be an accountant". I suggest that you use the same criteria for your immigration advice too.

[technologybytes]

Sorry to piss on your cornflakes, so to speak.. but if you need to ask advice on Thai Visa for that sort of Tax/Company law related to the United Kingdom, you are already doomed to failure. Do yourself a big favor and get some reliable local advice in the UK.

As I read it, the OP is not asking about UK tax and/or company law; he is asking about the best way of paying himself to suit what can be the very complicated financial requirements for a self employed sponsor of a family settlement visa.

Such questions is what this forum is for.

Sorry... I read the OP very slowly and carefully and I see no mention of that.

[Thormaturge]

Sorry to piss on your cornflakes, so to speak.. but if you need to ask advice on Thai Visa for that sort of Tax/Company law related to the United Kingdom, you are already doomed to failure. Do yourself a big favor and get some reliable local advice in the UK.

As I read it, the OP is not asking about UK tax and/or company law; he is asking about the best way of paying himself to suit what can be the very complicated financial requirements for a self employed sponsor of a family settlement visa.

Such questions is what this forum is for.

In post number three the OP states the query concerns the UK.

Don't ask me why they posted on a Thai visa forum.

[Basil B]

Jay Sata says :

So what is incorrect?

If you own a ltd company and pay yourself as an employee just under the tax threshold you can then claim the rest as dividends and pay tax at a lower rate than straight forward self employment. In the case of this guy it's also worth exploring the options available of having an offshore company based in somewhere like the Channel Islands. If he wants a straightforward simple spouse visa in the UK as long as he ticks all the boxes and earns over £18,600 he's home and dry.

I've said many times before that an accountant will save you a fortune and point you in the right direction for avoiding tax which is quite legal.

I don't claim to be an accountant which is why I have employed one for decades.

Indeed if he works in Rotterdam for six months and then does some work in Asia he can claim airfares etc as well. His company can employ his wife on the same basis and pay her just under the tax threshold and the rest in dividends. He can claim for a car minus personal mileage.

Lot's of offshore workers use this system.

I take it you don't own a Ltd company Tony?

What is incorrect is that, firstly, the OP is asking about qualifying as a sponsor for his wife's settlement visa, not asking about how he does his company accounts. This is a visa forum, not a tax advice forum, and you advised him that :

"However you'll have to bit the bullet and pay yourself enough to satisfy the £18,600 rule for the visa. That of course means paying more tax which we all hate. However once she has the visa you can then go back down the dividend route........ "

Secondly, and correctly, the OP does not have to pay himself a salary of 18,600 GBP a year to meet the requirements if he is a director of his own company. He can pay himself whatever he likes, and meet the rest of the financial requirement from dividend payments. So, your advice that he must pay himself "enough" to meet the 18,600 GBP a year threshold, and that he can then go back down the dividend route is totally wrong. If the OP took your advice he could be making serious errors. I can certainly see why you "don't claim to be an accountant". I suggest that you use the same criteria for your immigration advice too.

So if the OP started a limited company and paid himself as an employee of the company £18,600 per year as he intended too, then he would be liable for £1,300 class 1 National insurance.

And his company would also have to pay the employers NI...

Then maybe the company will have to register for VAT?

And then does IR35 apply?

[7by7]

Sorry to piss on your cornflakes, so to speak.. but if you need to ask advice on Thai Visa for that sort of Tax/Company law related to the United Kingdom, you are already doomed to failure. Do yourself a big favor and get some reliable local advice in the UK.

As I read it, the OP is not asking about UK tax and/or company law; he is asking about the best way of paying himself to suit what can be the very complicated financial requirements for a self employed sponsor of a family settlement visa.

Such questions is what this forum is for.

I see you have never owned or run a company 7by7 so how can you comment?

What are you on about, you pathetic little man?

When you will stop following me around the forum and posting rubbish?

[7by7]

Sorry to piss on your cornflakes, so to speak.. but if you need to ask advice on Thai Visa for that sort of Tax/Company law related to the United Kingdom, you are already doomed to failure. Do yourself a big favor and get some reliable local advice in the UK.

As I read it, the OP is not asking about UK tax and/or company law; he is asking about the best way of paying himself to suit what can be the very complicated financial requirements for a self employed sponsor of a family settlement visa.

Such questions is what this forum is for.

Sorry... I read the OP very slowly and carefully and I see no mention of that.

The clue is in the topic title; "Starting up my own limited company will this affect her visa?"

In post number three the OP states the query concerns the UK.

Don't ask me why they posted on a Thai visa forum.

Again, there's a big clue; in the title of this sub forum: "Visas and migration to other countries."

Look around this sub forum and you'll see lots of posts about visas for the UK and other countries, but none about visas for Thailand. Those are in the Thai visas sub forum!