Extension applicants please join here

Is this a requirement for extension that all 50K should be invested?

My business does not need a lot of investment. Would that mean a point blank refusal even if the business is running successfully and generating revenue.

Hello, I have two question. I got my entrepreneur visa in march 2014. My first question is, do we have to wait for the whole 3 years before I can apply for the 2 year extension or can I do it sooner, lets say after two years?

I am currently providing marketing services to one company and another self employed individual which i think meets the NQF Level 4 requirement. But now I also want to import instruments from Pakistan and sell them here which I think is necessarily retail if I am not wrong. Can I do it side by side my marketing business.

Help will be greatly appreciated. Thanks

ishfaqsangra wrote:once the money is in business account it is not simple to take it out and put it again,it does not matter I do not think some one need to make it 50,if one is genuinely trading each and every transaction can be explained and taking fund out as directors salary/loan are not going to be counted anyway.so overall transfer should be more than 50,000 if Directors salary is being taken out.
As long as you can explain transactions ,there is no point to make it up to 50 first ,it can be transferred in parts as Directors loan each time or if some one has not invested at all all 50,000 in one go should be fine. That's my personal opinion.
I have transferred 29,000 as Directors loan,21,000 still in account and 8000 invested but I have taken some salary as well so net investment is very low so definitely I would transfer more than 50,000, I hope someone understood.

Hi
I liked the way you have transferred the investment money into business bank account, and it sounds fine for me.

However, as there is not anything particular HO stated, i think if we can justify our way and can show the total investment money is still intact here or there, everybody will go fine. I have set regular quarterly investment that goes into business bank and rest keeps awaiting in my personal account.

Please supplement if anyone has any different views, that will helps all of us.

Cheers to all.

Hi, i am planning to transfer 50k into my company's account, my question is if i employ 2 part time employees for 25 hours a week and pay them salary depending on their designation for eg: 1000 per month each, so which comes to 24000 per annum , and for 2 years it 48k, will it be considered as investment , paying wages to setteled workers.

2 question is my company is making a profit of 3k per month and expenses are 2500 per month including employee wages ( excluding mine) will this be considered todars investment as i am paying wages or doing expenses using the money which company has earned, it's not through my 50k.

kindly reply i am really confused.

Atif786 wrote:Hi, i am planning to transfer 50k into my company's account, my question is if i employ 2 part time employees for 25 hours a week and pay them salary depending on their designation for eg: 1000 per month each, so which comes to 24000 per annum , and for 2 years it 48k, will it be considered as investment , paying wages to setteled workers.

2 question is my company is making a profit of 3k per month and expenses are 2500 per month including employee wages ( excluding mine) will this be considered todars investment as i am paying wages or doing expenses using the money which company has earned, it's not through my 50k.

kindly reply i am really confused.

I think you can claim that as your investment. In a very straightforward way, you doing your business genuinely and all those business expenditure were required and justifiable, then, that is what Ho has defined as investment; which is why I reckon you definitely can claim points on this. [In another way, whatever business requires to spend to operate and grow, is considered investment by HO].But that all these expenditures' source must be the fund that you have injected [50K], shouldn't be from your profit directly.

Gurus correct our viewpoints if it requires.
Thanks

I do not think someone can justify 50,000 investment in salaries,
you can not employ if there is no return,how can you simply payout 2000,every month while there is not enough profit

Agreed with Ishfaq, if you'r all 50K investment that you will be showing at the end of the journey goes only to staff pay, it could give you some nasty turns, unless you can justify them, why and how?

However, in my previous post what I was trying to say is, on top of the other genuinely needed other business expenditures, you also had to have this type of staff salary expenditure, you can get the points. But you should justify and make it crystal clear to your case worker.

Hi
kindly confirm any one to me as per UKBA 2 person for 1 years full time. i can give jobs any one or only british passport holder ????????????
thanks

khankamal wrote:Hi
kindly confirm any one to me as per UKBA 2 person for 1 years full time. i can give jobs any one or only british passport holder ????????????
thanks

Only settled people in UK who have not got any restrictions (British citizens/nationals, EEA and other migrants who are fully qualified as ILR).

Read the guidance,
https://www.gov.uk/government/uploads/s ... 08-14_.pdf

Dear folks,

I want some clarification about the following questions.Please do advise me.Thanks in anticipation.

Q1: In the Guidance it says:

The funds must continue to be available to you until they are spent for the purposes of your business or businesses. ‘Available to you’ means that the
funds must be in one of the following:
(1) in your own possession, means in personal account..I showed funds abroad in my own account.
(2) in the financial accounts of a UK incorporated business of which you are the director, or means in my Uk Business account.I have 10k at the moment and rest is still back home.
(3) available from the third party or parties named in your application (if applicable).

‘Spent’ by your business’ excludes spending on all of the following:

(1) your own remuneration, what it means ?
(2) buying the business from a previous owner, where the money goes to that previous
owner rather than into the business,
(3) investing in other businesses, and
(4) any spending which is not directly for the purpose of establishing or running your own
business or businesses.

So Please can someone elaborate the above bold points.

Can someone tell me which type of spending could be directly related to the purpose of establishing or running my own
business.

Thanks

In my opinion this part of Guidance is not related to Extension Applications.
If you already got the Entry Clearance then need not to worry about this part.

suvalike wrote:Dear folks,

I want some clarification about the following questions.Please do advise me.Thanks in anticipation.

Q1: In the Guidance it says:

The funds must continue to be available to you until they are spent for the purposes of your business or businesses. ‘Available to you’ means that the
funds must be in one of the following:
(1) in your own possession, means in personal account..I showed funds abroad in my own account.
(2) in the financial accounts of a UK incorporated business of which you are the director, or means in my Uk Business account.I have 10k at the moment and rest is still back home.
(3) available from the third party or parties named in your application (if applicable).

‘Spent’ by your business’ excludes spending on all of the following:

(1) your own remuneration, what it means ?
(2) buying the business from a previous owner, where the money goes to that previous
owner rather than into the business,
(3) investing in other businesses, and
(4) any spending which is not directly for the purpose of establishing or running your own
business or businesses.

So Please can someone elaborate the above bold points.

Can someone tell me which type of spending could be directly related to the purpose of establishing or running my own
business.

Thanks

Thanks for your reply.

I am already on tier 1 entrepreneur. My extension is due in march 2016.

Why do you think that part is not related to the extension applicants.

please elaborate.

Thanks

Read the words highlighted in red, it says "the funds must continue to be available to you until they are spent for business"
Now my understanding is that for extension you have to spend all funds so the case of availability of funds does not arise. Again its my opinion.

suvalike wrote:Thanks for your reply.
I am already on tier 1 entrepreneur. My extension is due in march 2016.
Why do you think that part is not related to the extension applicants.
please elaborate.
Thanks

suvalike wrote:Dear folks,
I want some clarification about the following questions.Please do advise me.Thanks in anticipation.
Q1: In the Guidance it says:
The funds must continue to be available to you until they are spent for the purposes of your business or businesses. ‘Available to you’ means that the
funds must be in one of the following:
(1) in your own possession, means in personal account..I showed funds abroad in my own account.
(2) in the financial accounts of a UK incorporated business of which you are the director, or means in my Uk Business account.I have 10k at the moment and rest is still back home.
(3) available from the third party or parties named in your application (if applicable).

‘Spent’ by your business’ excludes spending on all of the following:

(1) your own remuneration, what it means ?
(2) buying the business from a previous owner, where the money goes to that previous
owner rather than into the business,
(3) investing in other businesses, and
(4) any spending which is not directly for the purpose of establishing or running your own
business or businesses.

MTZ510 wrote:Read the words highlighted in red, it says "the funds must continue to be available to you until they are spent for business"
Now my understanding is that for extension you have to spend all funds so the case of availability of funds does not arise. Again its my opinion.

suvalike wrote:Thanks for your reply.
I am already on tier 1 entrepreneur. My extension is due in march 2016.
Why do you think that part is not related to the extension applicants.
please elaborate.
Thanks

suvalike wrote:Dear folks,
I want some clarification about the following questions.Please do advise me.Thanks in anticipation.
Q1: In the Guidance it says:
The funds must continue to be available to you until they are spent for the purposes of your business or businesses. ‘Available to you’ means that the
funds must be in one of the following:
(1) in your own possession, means in personal account..I showed funds abroad in my own account.
(2) in the financial accounts of a UK incorporated business of which you are the director, or means in my Uk Business account.I have 10k at the moment and rest is still back home.
(3) available from the third party or parties named in your application (if applicable).

‘Spent’ by your business’ excludes spending on all of the following:

(1) your own remuneration, what it means ?
(2) buying the business from a previous owner, where the money goes to that previous
owner rather than into the business,
(3) investing in other businesses, and
(4) any spending which is not directly for the purpose of establishing or running your own
business or businesses.

So it means if I have just spent 10k during the three years but still have 40K in my account while applying for the extension. Then it should not be an issue like why 50k has been wiped out from my account.

Because I dnt think we can spend whole 50k in the Business during three years even without the need.

Please elaborate I am thinking in the right direction.

Thanks

So it means if I have just spent 10k during the three years but still have 40K in my account while applying for the extension. Then it should not be an issue like why 50k has been wiped out from my account.

Because I dnt think we can spend whole 50k in the Business during three years even without the need.

Please elaborate I am thinking in the right direction.

Thanks[/quote]

Well, this has been really a big debatable issue for all of us, as HO guidance is not very much clear in many places. A/O HO, spending is what they consider investment, so in that line, we must spend all 50K out by end of 3rd year. However, as you said, yes most of the small businesses will not or can not consumer that all.

I had asked same query once with my solicitor who as with me then, he simply said, 'your remaining unspent money will remain in company account and that will be shown the balance sheet (current assets-cash account). However, I was not totally convinced, as we do not know whether HO's freaking caseworker will consider that or not.

Hope things will get more clear with time.

suvalike wrote:

MTZ510 wrote:Read the words highlighted in red, it says "the funds must continue to be available to you until they are spent for business"
Now my understanding is that for extension you have to spend all funds so the case of availability of funds does not arise. Again its my opinion.

suvalike wrote:Thanks for your reply.
I am already on tier 1 entrepreneur. My extension is due in march 2016.
Why do you think that part is not related to the extension applicants.
please elaborate.
Thanks

suvalike wrote:Dear folks,
I want some clarification about the following questions.Please do advise me.Thanks in anticipation.
Q1: In the Guidance it says:
The funds must continue to be available to you until they are spent for the purposes of your business or businesses. ‘Available to you’ means that the
funds must be in one of the following:
(1) in your own possession, means in personal account..I showed funds abroad in my own account.
(2) in the financial accounts of a UK incorporated business of which you are the director, or means in my Uk Business account.I have 10k at the moment and rest is still back home.
(3) available from the third party or parties named in your application (if applicable).

‘Spent’ by your business’ excludes spending on all of the following:

(1) your own remuneration, what it means ?
(2) buying the business from a previous owner, where the money goes to that previous
owner rather than into the business,
(3) investing in other businesses, and
(4) any spending which is not directly for the purpose of establishing or running your own
business or businesses.

So it means if I have just spent 10k during the three years but still have 40K in my account while applying for the extension. Then it should not be an issue like why 50k has been wiped out from my account.

Because I dnt think we can spend whole 50k in the Business during three years even without the need.

Please elaborate I am thinking in the right direction.

Thanks

Well first of all your initial query was for that part of guide which in my opinion is for entry clearance only and not for extension, reason being you can't have money in your personal account at the time of extension.

Secondly it is clear that we have to invest 50K or 200K in our business by the time we go for extension.

Now the confusion is that HO uses the words money being spent in business and we can all guess what does it really means?
You can search on this forum of similar debates and i can only give my opinion which is that if you are self employed then you have to prove that you have spent 50K or 200K in your business, where as if you are working through limited company then you can invest money by only transferring money in to the limited company account in form of either share capital or a subordinated directors loan.

One thing is very clear you can't have money in your personal account at the time of extension and claim that you have invested the funds and that's why i find that portion of guide reproduced in your post as irrelevant for extension candidates.

Dear All

i think employees should be hired at the end becouse if you will hire 4 people in the second year for 6 months and then you will have no employee in last year ,it will show to them that you are just meeting requirement and the business is not growing.they will call you for the interview to explain that how your business growing as you hired 4 people and in the last year you sack all 4 people .

my suggestion is keep 2 employees at the time of extension to give positive point.

i got visa on 50k route ,how can i invest my money ,either only in my company or i can invest in some other business by investing as loan to them and getting profit share against that loan in my business account.

thanks

ayyan121 wrote:Dear All

i think employees should be hired at the end becouse if you will hire 4 people in the second year for 6 months and then you will have no employee in last year ,it will show to them that you are just meeting requirement and the business is not growing.they will call you for the interview to explain that how your business growing as you hired 4 people and in the last year you sack all 4 people .

my suggestion is keep 2 employees at the time of extension to give positive point.

i got visa on 50k route ,how can i invest my money ,either only in my company or i can invest in some other business by investing as loan to them and getting profit share against that loan in my business account.

thanks

What I suggest you, is rather than employing the employees at start or at end, the best strategic way is make the time distribution fairly throughout the period such as start with 15 hrs/week at first year and another 15 hrs of another employee added in the next year [both can go for 24 mtnths continuously or more]. This can be stretched throughout the period and in a fairly distributed way where company is always having one or 2 employees with it along. It makes more sense as the director is not supposed to spend his/her time in day-to-day operational/administrative activities. And we must also be ready to employee if needed more than required for extension [2 jobs each 12 months or equivalent]. It will hold more weight.

Hi all

Further to your conversation I have a question about money availability. So, I qualified for T1 (E) visa through £50K route in April 2013. At that point the whole sum of £50k was on my personal bank acc in the UK. When I got my visa, in Sep 2013 I took £15K out of that sum and left only £35k resting there on saving acc.
When my business generated the first real profit in May 2014 I transferred £10k back to my personal acc (on ISA) as my dividends and I`m planning to use this money as an investment to my business.

Does it mean that I breach the rule that "the funds must continue to be available to you until they are spent for the purposes of your business or businesses". In other words should I invest factually the same money that I shown initially? Or I have to just invest £50K and spend it?

Thanx

continue does not mean to be in the same account in my opinion.if they enquire then you must show the accounts(how much invested and how much available)

confused90 wrote:I have invested around 50K also, and it's in a loss. The first year for new businesses is almost a loss, due to the cause of new purchases.

There is no such requirement that the business should be in profit every year by the HO, but if the business is in a loss even after the 3rd year.... the HO might ask, why are you doing business if it's running a loss since 3 years?

As per guidence
the business should be profitable business

confused90 and Cappachino - There is no requirement for a business to be profitable, not in the guidance!

Please do not mislead people here. - Please read guidance before just posting on the forum.

Matter of fact, no-one can predict a business to be profitable.

a lot of very succesful startups still run at a loss (example: Twitter ).

confused90 and Cappachino - There is no requirement for a business to be profitable, not in the guidance!

Please do not mislead people here. - Please read guidance before just posting on the forum.

Matter of fact, no-one can predict a business to be profitable.

a lot of very succesful startups still run at a loss (example: Twitter ).

rahulsingh1 wrote:confused90 and Cappachino - There is no requirement for a business to be profitable, not in the guidance!

Please do not mislead people here. - Please read guidance before just posting on the forum.

Matter of fact, no-one can predict a business to be profitable.

a lot of very succesful startups still run at a loss (example: Twitter ).

Agreed that there is no requirement for a business to be profitable. Making a profit or loss will not affect the application.

Perhaps they mean "prospect", in the sense that if there is no prospect for the business, UKVI wont even consider the application.

I applied for Tier 1 Ent visa in January 2014 and received the visa in August 14. At that time Property Management was defined as a real estate business that earns income through commission. So, I set up two B&Bs with 4 employees. I've got websites for each of the B&Bs and I pay business rates for them. Surprisingly in the latest policy guidance the Property Management has been defined like any business that earns income through property rent. B&B earns income basically through room rents although it offers breakfast and soft drinks and, of course, it's not like renting house or commercial property. Now I'm really worried if the B&B business is going to be considered as property management. I talked to some solicitors. Even they're not sure about this. It would be a great help if someone on here could share their experience or ideas on this. If someone knows a good solicitor who can handle this issue, I'll be highly grateful if you let me know their contact details.
Many many thanks and I look forward to your helpful replies.
Kindest regards.