# supporting evidence for the financial requirement: director of a limited company



## schauspielerin (Nov 11, 2012)

Hi all,

I'm applying for the extension of my FLR(M) visa; in the nearly 30 months since I was granted leave the first time, my husband has switched from having a standard, salaried job to being the director of his own limited company. So of course, this is now a more complicated process in terms of proving we meet the financial requirement.

I'm wondering if anyone has had any experience with applying in this way. So in the financial guidance, it says that you only need to provide evidence of the income and/or cash savings required to meet the financial requirement.

SO, is it necessary to provide evidence of both dividends AND salary, if either on its own are enough to meet the financial requirement? Or is it enough, if the requirements are met through dividends alone, to simply provide the evidence of that?

There's just a ridiculous amount of paperwork required for this particular financial route (they've got more stringent requirements than Inland Revenue!). 

Thanks for any help!

x


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## wlad (Jan 19, 2013)

Hi schauspielerin,

I hope you had success in your FLR (M) appliction.

We're in a very similar situation to you. We're just about to apply for an extension to my wife's FLR (M).

I was made redundant from salaried employment in August 2014. I've been the director of a limited company since November 2014. 

I'm fortunate that my income easily covers the financial requirment, but I'm at a bit of a loss as the best way to go about proving this. 

I'm interested if you or anybody else have any feedback from the process and any information about the evidence you supplied?

Many thanks


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## stenomanuk (Feb 22, 2015)

You will need to produce a FULL YEAR'S accounts before you can apply for the visa. They will not accept a partial year. 

Page 57 of this document is a good start: https://www.gov.uk/government/uploa..._FM_1_7_Financial_Requirement_August_2015.pdf

Look from paragraph 9.3 onwards.

And here is what you need to provide:

9. In respect of income from employment and/or shares in a limited company 
based in the UK of a type specified in paragraph 9(a), the requirements of 
paragraph 9(b)-
(e) shall apply in place of the requirements of paragraphs 2 and 10(b) 3:
(a) The specified type of limited company is one in which:
(i) the person is a director of the company (or another company within the same group); 
and
(ii) shares are held (directly or indirectly) by the person, their partner or the following 
family members of the person or their partner: parent, grandparent, child, stepchild, 
grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and
(iii) any remaining shares are held (directly or indirectly) by fewer than five other 
persons.
(b) All of the following must be provided:
(i) Company Tax Return CT600 (a copy or print-out) for the last full financial year and 
evidence this has been filed with HMRC, such as electronic or written acknowledgment 
from HMRC.
(ii) Evidence of registration with the Registrar of Companies at Companies House.
(iii) If the company is required to produce annual audited accounts, such accounts for 
the last full financial year. 
(iv) If company is not required to produce annual audited accounts, unaudited accounts 
for the last full financial year and an accountant’s certificate of confirmation, from an 
accountant who is a member of a UK Recognised Supervisory Body (as defined in the 
Companies Act 2006);
(v) Corporate/business bank statements covering the same 12-month period as Company Tax Return CT600. 
(vi) A current Appointment Report from Companies House.
(vii) One of the following documents must also be provided: 
(1) A certificate of VAT registrat
ion and the VAT return for the last full financial year (a 
copy or a print-out) confirming the VAT registration number, if turnover is in excess of 
£79,000 or was in excess of the threshold which applied during the last full financial 
year.
(2) Proof of ownership or lease of business premises.
(3) Original proof of registration with HMRC as an employer for the purposes of PAYE 
and National Insurance, proof of PAYE reference number and Accounts Office reference 
number. This evidence may be in the form of a certified copy of the documentation 
issued by HMRC.
(c) Where the person is listed as a director of the company and receives a salary from 
the company, all of the following documents must also be provided:

(i) Payslips and P60 (if issued) covering the sam
e period as the Company Tax Return 
CT600.
(ii) Personal bank statements covering the same 12-month period as the Company Tax 
Return CT600 showing that the salary as a director was paid into an account in the 
name of the person or in the name of the person and their partner jointly.
(d)Where the person receives dividends from the company, all of the following 
documents must also be provided:
(i) Dividend vouchers for all dividends declared in favour of the person during or in 
respect of the period covered by the Company Tax Return CT600 showing the 
company’s and the person’s details with the person’s net dividend amount and tax 
credit.
(ii) Personal bank statement(s) showing that those dividends were paid into an account 
in the name of the person or in the name of the person and their partner jointly.


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## stenomanuk (Feb 22, 2015)

schauspielerin said:


> Hi all,
> 
> I'm applying for the extension of my FLR(M) visa; in the nearly 30 months since I was granted leave the first time, my husband has switched from having a standard, salaried job to being the director of his own limited company. So of course, this is now a more complicated process in terms of proving we meet the financial requirement.
> 
> ...


I think you can use just salary or dividends, or a combination. You would want to claim the maximum amount of salary anyway for tax and NI purposes (so you pay less), and the rest you make up in dividends.

I do know for my Fiance Visa, I had to provide a year's trading accounts, and those had to be filed with HMRC, and I had to provide proof of that. I don't know what the situation is with FLR applications, but it seems to be the same, but do check.

The best thing is to get your accountant involved. It's very complicated.


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## Joppa (Sep 7, 2009)

stenomanuk said:


> You will need to produce a FULL YEAR'S accounts before you can apply for the visa. They will not accept a partial year.


This is incorrect. People have been approved by submitting financial statement for less than a year, provided they have made the required level of pre-tax profit in that period. Under Cat F, you need to provide accounts drawn up for a period up to a year. This is relevant if you have been a director for less than a year but you have already made the required level.


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## stenomanuk (Feb 22, 2015)

Joppa said:


> This is incorrect. People have been approved by submitting financial statement for less than a year, provided they have made the required level of pre-tax profit in that period. Under Cat F, you need to provide accounts drawn up for a period up to a year. This is relevant if you have been a director for less than a year but you have already made the required level.


The requirements state "Company Tax Return CT600 for the last full financial year".

I had to wait for my financial year to be up before applying. That was on advice from this board!

http://www.expatforum.com/expats/br...uk/693298-company-trading-less-than-year.html


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## stenomanuk (Feb 22, 2015)

Correct me if I'm wrong, but my understanding is you need one year's of trading accounts to submit. Thereafter, if you're doing an FLR, for example, you can submit that previous year's trading PLUS evidence of ongoing employment as director of the company.

You basically have to have at least one year's accounts for presentation that is your own last financial year.


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## Joppa (Sep 7, 2009)

stenomanuk said:


> The requirements state "Company Tax Return CT600 for the last full financial year".
> 
> I had to wait for my financial year to be up before applying. That was on advice from this board!
> 
> http://www.expatforum.com/expats/br...uk/693298-company-trading-less-than-year.html


What it means is the accounts have been drawn up for the full financial year, but your company doesn't have to be trading for the full year. CT600 can be for a company that has been trading only for 6 months, for example.
I was misinformed when I gave previous advice - since then I have seen people getting approved for submitting accounts covering less than a full year but still made the required amounts.


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## schauspielerin (Nov 11, 2012)

If you don't have an accountant, make sure you get one and have them sort your accounts. The UKVI requirements are more stringent than HMRC's. If you follow the financial advice to the letter, you should be fine. 

My husband got an accountant (even though he had previously planned on not using one) to sign off on his accounts. It was expensive and frustrating for him, but ultimately worth it. My FLR(M) extension was approved in June of this year.


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## stenomanuk (Feb 22, 2015)

Joppa said:


> What it means is the accounts have been drawn up for the full financial year, but your company doesn't have to be trading for the full year. CT600 can be for a company that has been trading only for 6 months, for example.
> I was misinformed when I gave previous advice - since then I have seen people getting approved for submitting accounts covering less than a full year but still made the required amounts.


I wish I had know this. It would've saved a lot of relationship difficulties and travel fees! Live and learn, I guess. I hope somone else can benefit from the information.


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## Joppa (Sep 7, 2009)

Not many people apply as self-employed, let alone as director of a specified limited company and it takes time to build up case history.
Perhaps a reason for getting paid advice from an established legal firm.


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## stenomanuk (Feb 22, 2015)

Joppa said:


> Not many people apply as self-employed, let alone as director of a specified limited company and it takes time to build up case history.
> Perhaps a reason for getting paid advice from an established legal firm.


I did that. The experience wasn't so good. I used three firms and all were as bad as each other. A lot of misinformation flying around or they plain couldn't answer questions, or, if they did, the answer was completely wrong. And the cost was ridiculous too. (One took £1,000 from me on the pretext of being able to appeal the refused visit visa - even though, if I had read the refusal notice properly, this wasn't even possible.) 

Honestly, this board is the best place to come to. I think a lawyer would only be good in very complex cases, and then only use a really, really good one. 

I'm just glad this point about the financial year doesn't have to be a year is now common knowledge on the board and others can benefit.


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## Joppa (Sep 7, 2009)

https://www.kingsleynapley.co.uk/ has been recommended, though expensive.


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## wlad (Jan 19, 2013)

Hi guys, thank you all very much for your replies. I'm glad that people get approved with less than 1 full year's trading.
For me, I'm going to wait until my accountants have drawn up my first year's accounts because I've been trading now for just about a year. It's going to be tight with the timings but I'm confident it will go through OK based on others' experience and the fact that we've exceeded the requirement.

I'll post back with details of how it goes.


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