Spousal Visa and N.I. Stamp

[aposhark]

Hi,

I am a director of a limited company (it's a one man band operation) and I have forgotten to keep my N.I. Stamp up to date.
How important is this for the spousal visa?
Does the British Embassy check this?

I can provide all other requirements for Rochelyn in the next couple of weeks
(bank statements, limited company registration, rental contract, sponsor's letter, evidence of relationship) but I saw someone mention national insurance and a little alarm bell went off

Thanks for any help

[IainBusby]

Hi,

I am a director of a limited company (it's a one man band operation) and I have forgotten to keep my N.I. Stamp up to date.
How important is this for the spousal visa?
Does the British Embassy check this?

I can provide all other requirements for Rochelyn in the next couple of weeks
(bank statements, limited company registration, rental contract, sponsor's letter, evidence of relationship) but I saw someone mention national insurance and a little alarm bell went off

Thanks for any help

As far as I know you don't have to produce any sort of evidence related to national insurance contributions. Six months proof of earnings is normally all that is required with regard to your employment.
Iain.

[aposhark]

As far as I know you don't have to produce any sort of evidence related to national insurance contributions. Six months proof of earnings is normally all that is required with regard to your employment.
Iain.

Thanks a lot Iain, BTW I would still like to contact you and Louella when Rochelyn arrives in March (a guesstimate) to say hello and to find out where the shops in Cov are to get ingrediants for Adobo! I am still encouraging her to make that when she comes over. She likes Adobo very much also.
Cheers,
Mike

[IainBusby]

Thanks a lot Iain, BTW I would still like to contact you and Louella when Rochelyn arrives in March (a guesstimate) to say hello and to find out where the shops in Cov are to get ingrediants for Adobo! I am still encouraging her to make that when she comes over. She likes Adobo very much also.
Cheers,
Mike

We'll look forward to that.
Cheers,
Louella & Iain.

[PeterB]

Hi,

I am a director of a limited company (it's a one man band operation) and I have forgotten to keep my N.I. Stamp up to date.

Errmmmm. Shouldn't you be operating PAYE? Your NI should be collected as part of your PAYE payments.

[keithAngel]

Yes it is pay as a director but there are certain perks in that you don't necessarily paye Employees contribution on every month until you reach the threshold (other employees are assessed on a month by month basis) if you are not using a paye disc mike your accountant or bookkeeper should be keeping on top of this ,

The other thing is that your company should be submitting its returns on time its about 7months after our financial year ends and you can nominate when that is they can get quite sniffy about late returns however you could earn very little as an employee ,claim all you allowable expenses an d then pay corporation tax on the profit and collect that as a dividend .

You should always earn just over your tax free limit which used to include the now gone 10p rate as its cheaper than paying CpT at about 19% I think

[PeterB]

Yes it is pay as a director but there are certain perks in that you don't necessarily paye Employees contribution on every month until you reach the threshold (other employees are assessed on a month by month basis) if you are not using a paye disc mike your accountant or bookkeeper should be keeping on top of this ,

Indeed. Directors' NI is handled differently (to prevent Directors paying themselves for only one month each year, and going way over the Upper Earnings Threshhold, while remaining below the Lower Earnings Threshold in the other 11 months), but it is not replaced by an 'NI stamp' (which term is an anachronism) which is applicable to Self Employed and Partnerships.

The other thing is that your company should be submitting its returns on time its about 7months after our financial year ends and you can nominate when that is they can get quite sniffy about late returns however you could earn very little as an employee ,claim all you allowable expenses an d then pay corporation tax on the profit and collect that as a dividend .

PAYE returns have to be submitted by July 19th each year. Company (Corporation) Tax return has to be submitted within 12 months of the end of your company accounting period, although any tax due has to be paid within ten months.

You should always earn just over your tax free limit which used to include the now gone 10p rate as its cheaper than paying CpT at about 19% I think

I believe that the Revenue are also getting sniffy about the use of this mechanism and, in any case, it was always useful to earn a more reasonable salary in order to gain other benefits such as allowable contributions into pension schemes etc. I used to adjust my earnings from all sources so that I remained below the 40% tax level (at which point un-earned income gets hit to bring the tax paid up to 40%).

Of course, since closing my company I've been trying to forget all the details, so the foregoing may not be totally correct!

[aposhark]

Errmmmm. Shouldn't you be operating PAYE? Your NI should be collected as part of your PAYE payments.

Hi PeterB,

A Limited company is different than PAYE.
I submit invoices for services rendered, then corporation tax of 20% is payable at years end. Of course there are allowances that are due to me that come out of the corporation tax.

PAYE is for empoyees but I am a one man band with no employees.

WHOOPS _ Just noticed your post above, but will leave this one in. Cheers

[aposhark]

Yes it is pay as a director but there are certain perks in that you don't necessarily paye Employees contribution on every month until you reach the threshold (other employees are assessed on a month by month basis) if you are not using a paye disc mike your accountant or bookkeeper should be keeping on top of this ,

The other thing is that your company should be submitting its returns on time its about 7months after our financial year ends and you can nominate when that is they can get quite sniffy about late returns however you could earn very little as an employee ,claim all you allowable expenses an d then pay corporation tax on the profit and collect that as a dividend .

You should always earn just over your tax free limit which used to include the now gone 10p rate as its cheaper than paying CpT at about 19% I think

Thanks for the comments Keith.
I am top of everything (I think ) I just forgot the NI stamp and my accountant did not bring it up

[baboyako]

yo aposhark,

I submitted my application as self employed, but I did run a payroll so I was paying PAYE and NI and this was included with my application (minimum wage ).

BTW I was submitting NI & Tax payments quarterly (the yellow book).

I did include bank statements for the company as well as my own bank statement. I also included copies of company formation documents.

I'm sure its perfectly 'legal' to backdate a salary and then get 3 months payslips printed on the net somewhere (yes this is legal if its your company) then show the payments leaving your company account and entering your personal account..

Main thing is to explain EVERYTHING in the accompanying supporting letter.

[keithAngel]

yo aposhark,

I submitted my application as self employed, but I did run a payroll so I was paying PAYE and NI and this was included with my application (minimum wage ).

BTW I was submitting NI & Tax payments quarterly (the yellow book).

I did include bank statements for the company as well as my own bank statement. I also included copies of company formation documents.

I'm sure its perfectly 'legal' to backdate a salary and then get 3 months payslips printed on the net somewhere (yes this is legal if its your company) then show the payments leaving your company account and entering your personal account..

Main thing is to explain EVERYTHING in the accompanying supporting letter.

We print our own payslips but the issue that can come up is that Tax and Contributions (for us) have to be paid every 3 months, another useful technique is to pay the tax and NI contributions on the salary of you choice and then "loan" the money back as "Directors Loan Account this means later you can take this money when it becomes available

[PeterB]

PAYE is for empoyees but I am a one man band with no employees.

... but, normally, a director is considered to be an employee of the limited company.

It sounds to me as though you are treating yourself as self-employed, but contracting your services to the company of which you are a director.