is advertisiment considered as investment

please explain is advertisement considered as form of investment in company for tier 1 entrepreneur
please don't view it post it will be much helpful

yes except employee pay most probably any thing you spend towards your business that would count as an investment.

Sorry @shah05 where did you hear this about employee pay? I was under the impression salaries count as part of the investment, and a solicitor has told me so as well.

Ok, please check with accountant as well. As per my knowledge, and after reading so many interviews and opinion, also my solicitor have confirmed that employee salary isn't an investment which you can use from £50k. Employee salary would be paid from the profit u earn

niomi wrote:Sorry @shah05 where did you hear this about employee pay? I was under the impression salaries count as part of the investment, and a solicitor has told me so as well.

Your Solicitor is wrong.I was thinking same as u before.
My accountant told me that the employee pay will not count as an investment.But the payment for advertisement will count as investment.

Do we know the answer to this yet? Does employee payroll count as investment?

All rational business expenses [except director's salary] are considered as investment by HO criteria.

Don't get confused/mixed up with accounting definitions, as HO hasn't followed them and we just following whatever HO requirement asks us to become eligible in our next extension. This issue has been always a topic of discussion.

Hello Guys,

Advertising fee or any cost definately count as investment.
And If you pay salary from initial 50k that does'nt count as investment but if you are paying from your profit that does count as investment.
As per my Accountant.

Thanks

Expenses which are must in order to run the business are by default an investment... profit is the end result which you can't depend on to run the business you might end up incurring losses end of the year but you've still ran a business which involved space, employees, stationary, marketing, shipping, and few intangible assets which every business would need or have like website and seo they're all an investment as per my knowledge hence I would say salaries are an investment however HO wants 50K of your personal money injected in business if you make profit of course common sense dictates you pay salaries from profit which means u get no points for investment hope it clears bit of ambiguity... Please clarify if I am wrong

There are two things that everyone seems to be saying need to be demonstrated for extension:

1. That £200k has been transferred to a UK bank account.
2. That £200k has been invested in the UK.

Is it possible to skip step 1, and only complete step 2 [i.e., use profit as investment]?

I have read the guidelines very carefully and see no mention of the actual need to transfer the money. If I'm making a profit that amounts to £200k, why can't I turn around and use that as investment?