Spouse Visa - LTD company?

Member since 17 September 2018

jsmith1234Member17 September 2018 18:49:15

Hello all,
My wife arrived in the UK on Feb 2017. We will be applying for her spouse extension which comes up on October 2019.
I have all the relevant paper work. However, im slightly confused with financial situation as im a director of a LTD company.
We have 1 child who was born in the UK, so I understand I need to show an income of £23,000 (rounding up).
My LTD company was created around November 2017, so my first-year accounts will need to be generated on November 2018.
I was in a Perm job until March 2018 (then I officially started doing contract work, so for the first few months of my LTD company I had no income via the company)
I earn £225 per day and have been doing so for the last 6 months. My contract has been extended until January 2019 (with possible extension or ill look elsewhere)
Can anyone suggest what I should do in terms of my income for the 1st year of my LTD company? As I will need to show the home office my income etc (slightly confused when it comes to LTD companies, as I haven’t actually been paying my self as my accountant suggested paying my self-dividends to be “tax efficient” .
But I don’t want to pay myself in dividends if its going to cause the HO to think I don’t earn £23,000 per year (which I clearly do).
Thank you

Cynic UK/Netherlands Expert

Member since 15 September 2015

CynicUK/Netherlands Expert17 September 2018 19:25:28

8059

Hi and welcome to the Forum.

My only real comment is that as far as the Home Office is concerned, they are ticking boxes on a computer screen and you have to provide the information that will enable the guy doing it, to tick the right boxes as far as your concerned.

I agree with your sums and I've just looked at the Home Office website, where it says:

Home Office website wrote:
What counts as income

You and your partner can use:

-income from employment before tax and National Insurance (check your P60 or payslips) - you can only use your own income if you earn it in the UK
-income you earn from self-employment or as a director of a limited company in the UK - check your Self Assessment tax return
-cash savings above £16,000
-money from a pension
-non-work income, for example from property rentals or dividends

If you’re using income from self-employment or employment, you’ll need to prove you or your partner received that income for 6 months or more.

So these are the only permitted sources to count towards your wife's application. Probably might be a good idea to take this list back to your accountant and tell him to wave his magic abacus over your numbers to make this work (or face a fed up wife).

Hope this helps.

Cynic
Expat Team

jsmith1234 Member

Member since 17 September 2018

jsmith1234Member19 September 2018 18:50:59

Ok, thank you very much. I shall show him the requirements and see what he suggests - Getting advise from solicitors cost £130, and the average quote to do the case work is £1000 ! Regardless of how much you earn. I dont think solicitors can justify charging £1000 for a spouse extension!.