Director of limited company - net profits

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Old Mar 29th 2020, 4:57 am
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Default Director of limited company - net profits

Hi everyone

I wonder if you can please help me with my uk spouse visa application for my husband.

I am a director of a limited company and my wages are 38000 which is over the threshold, however my solicitor is advising that my company profits need to also be over the threshold. Is this correct?

I thought it was just sole traders and franchises that needed their profit to be 18600 but if you are a director or employee of a limited company then they just look at your wages and dividends.

I have checked and rechecked the appendix FM and it clearly states that for those that are self employed as a sole trader, franchise or partnership your income is calculated as your net profit. However i am none of those, I am a director/employee of a company so I dont think the companies net profits should be looked at.

Please help, as my solicitor is suggesting I resubmit my company tax return which will cost me extra money and time.

I am currently pregnant and right now every penny counts, I literally cant afford to pay my accountant extra to make the change especially if I dont need to.

Please any help would be appreciated.
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Old Mar 29th 2020, 5:35 am
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Default Re: Director of limited company - net profits

In which section of Appendix FM (there are many) are you reading that "self employed as a sole trader, franchise or partnership your income is calculated as your net profit".?

....
and why, resubmitting your company tax return will make any difference to your application?
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Old Mar 29th 2020, 12:14 pm
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Default Re: Director of limited company - net profits

Originally Posted by SanDiegogirl
In which section of Appendix FM (there are many) are you reading that "self employed as a sole trader, franchise or partnership your income is calculated as your net profit".?

....
and why, resubmitting your company tax return will make any difference to your application?
Hi Sandiegogirl,

Thanks for replying.

I read it in paragraph 9.5.3 of appendix FM 1.7

My net profits are 16,000 in my unaudited account reports and 19,000 in my company tax return (the difference is because my entertainment expenses of £3000 are disallowable expenses by the HMRC so I need to add them back to my profits on the company tax return so that they can be taxed)

My solicitor has said that my profits should be over 18,600 and because they are only 16,000 I need to change my unaudited account report and company tax return so that they both show a minimum of 18600.

I'm just not sure if I actually need to do this as my wages are 38000 so really not sure if my company profits are looked at by the entry clearance officer
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