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How the money must be used

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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ishfaqsangra
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How the money must be used

Post by ishfaqsangra » Fri Nov 21, 2014 10:22 am

At page 62 in the new guidance (how to assesss Tier1 Applicants,intial/extension) updated 17 November says

"How the money must be used
Money must be fully used in the business and not held in the business bank account in order to qualify for the award of points.
Money deposited in a bank account, even if it is in a UK business bank account, is not
counted as investment in business.
The money must be used in the business to encourage growth or expansion, to improve
services or products and to make sure the business is profitable.
Director’s loans however are permitted to remain in a bank account, provided the loan is not called in"


What does this mean that Director's loan in Limited company is allowed to be in the account if not fully invested?
Or?

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Fri Nov 21, 2014 12:57 pm

I think that would be the big relief if I understood it right

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Fri Nov 21, 2014 3:54 pm

Any comments from seniors please

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Fri Nov 21, 2014 6:35 pm

ola@ Sir what are your understanding on these lines.I have been waiting all day ?

Olasunkanmi
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Re: How the money must be used

Post by Olasunkanmi » Sat Nov 22, 2014 11:46 am

@ ishfaqsangra, HO have also just clarified that directors loans can be in business bank account during extension but they fail to specify duration for keeping the loan on and because of this, I think that they might still make additional changes in the future because applicants can simply leave 50k in business account as director's loan and then spend little until they obtain ILR after which they can then simply ''call in'' the loan.

In my opinion, HO are still very confused about this whole entrepreneur visa and its always better to be prepare for any changes from them at any time.

I will suggest that you use director's loan option if you want to but be prepare for any other changes that HO might try to make.

Applicants always send HO e-mail queries about their intensions and confusions on several issues and I think this is when HO then realise that the rules need amendments and clarifications.
The key to success is knowledge and hardwork, and to have faith.

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Sat Nov 22, 2014 10:22 pm

Thanks a lot.

They will definitely clarify this in future.as in normal guidance these lines are not mentioned but in guideline for case workers they mentioned it.

It will be good if they make the full investment " a must" before ILR instead of extension

Lets see.

thanks again
.

whiteroses
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Re: How the money must be used

Post by whiteroses » Sun Nov 23, 2014 7:06 pm

Is it possible to write to the Home Office to clarify this?
If anyone has an email ID that we can write to, please do let me know.

ENTREPRENEUR83
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Re: How the money must be used

Post by ENTREPRENEUR83 » Mon Nov 24, 2014 10:33 am

Yes PLEASE, if anyone can share the HO email address to clarifies certain things. Would be great

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Re: How the money must be used

Post by ENTREPRENEUR83 » Mon Nov 24, 2014 4:01 pm

ishfaqsangra wrote:At page 62 in the new guidance (how to assesss Tier1 Applicants,intial/extension) updated 17 November says

"How the money must be used
Money must be fully used in the business and not held in the business bank account in order to qualify for the award of points.
Money deposited in a bank account, even if it is in a UK business bank account, is not
counted as investment in business.
The money must be used in the business to encourage growth or expansion, to improve
services or products and to make sure the business is profitable.
Director’s loans however are permitted to remain in a bank account, provided the loan is not called in"


What does this mean that Director's loan in Limited company is allowed to be in the account if not fully invested?
Or?
Hi ishfaqsangra,

Would you be able to share the guidance because I could not find any of such information whereas updated on the 6/nov/14 (Guidance – Tier 1 (Entrepreneur) – version 7.0 Valid from 06 November 2014), there is not such thing mention same applies to the Tier 1 (Entrepreneur) of the Points Based System – Policy Guidance 11/14. Both states the same

" Money must be fully used in the business and not held in the business bank account in order to qualify for the award of points.Money deposited in a bank account, even if it is in a UK business bank account, is not counted as investment in business.The money must be used in the business to encourage growth or expansion, to improve services or products and to make sure the business is profitable. Director’s loans however are permitted to remain in a bank account, provided the loan is not called in." Page 62/63 IMMIGRATION RULE GUIDANCE)


"Money should be fully used in the business and not held in the business bank account in order to qualify for the award of points.
Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business. The money should be used in the business to encourage growth or expansion, to improve services or products and to ensure the business is profitable" page-54(Policy guidance 11/14)

I will check the term "called in" stands for with accountant and surely get back to the board whereas senior member might able to advice some?

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Mon Nov 24, 2014 6:14 pm

I did not understand what do you mean by same.

Directors Loan however are permitted to stay is in the guidance for case workers updated this month but it is not in the normal guidance for applicants

what you are confused about.

called in means in terms of loans means" taken back

Director’s loans however are permitted to remain in a bank account, provided the loan is not called in." Page 62/63 IMMIGRATION RULE GUIDANCE
"this is difference

ENTREPRENEUR83
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Re: How the money must be used

Post by ENTREPRENEUR83 » Tue Nov 25, 2014 10:04 am

I meant to say that both the guidance are saying the same except the one you spotted. I was confused about the date (17/nov) and was wondering how come its updated in 10 days because the one I have is 6/Nov, so I just requested for it because I could not find anything for the date. Anyway, thanks for clarifying the meaning of called in. Thanks for your feedback much appreciated :)

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Tue Nov 25, 2014 10:57 am

Even a single line makes a huge difference so we have to be clear on that.
Lets see if they update the guidance in future they might clear it

whiteroses
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Re: How the money must be used

Post by whiteroses » Tue Nov 25, 2014 12:53 pm

I made a thread about this in June. This extra line has been in the case workers' guidance since June at least.

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Tue Nov 25, 2014 1:27 pm

Did you email Home Office or did anybody put in valuable comments/explanation ?

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Re: How the money must be used

Post by whiteroses » Wed Nov 26, 2014 10:26 am

I did write to them but haven't heard back.
If anybody has UKBA's email ID then I'd be happy to send an email to them.

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Wed Nov 26, 2014 11:22 am


rahulsingh1
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Re: How the money must be used

Post by rahulsingh1 » Wed Nov 26, 2014 12:55 pm

What you read is correct.

They are permitted to stay.

As long as they are subordinated to other lenders to the company..

Meaning if the company goes bust, and the company has owed money to other people.

They will get paid first and NOT the director. Which is fair.

People have got extentions on this. My solicitor has got it confirmed from the UKBA on email.

ENTREPRENEUR83
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Re: How the money must be used

Post by ENTREPRENEUR83 » Wed Nov 26, 2014 2:38 pm

@ rahulsingh1

much appreciated for your feedback, is it possible to share the email address your solicitor use to get the confirmation so we can do as well for safe side therefore, tomorrow HO don't create issue while extension. Would be a great help. Thanks

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Re: How the money must be used

Post by whiteroses » Wed Nov 26, 2014 4:20 pm

Thanks for your post Rahul Singh.

Is it only in the case of a Director's Loan that you can transfer the amount to the company and not spend it before the time of extension? As in, does the money invested as share capital have to be fully spent at the time of extension?
Also, which UKBA email id did you send the email to?

Thanks again.

ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Fri Nov 28, 2014 5:32 pm

any update ?

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Re: How the money must be used

Post by cappachino » Fri Nov 28, 2014 10:37 pm

What about the money earned from the business as profit does that have to be reinvested or can that stay in the bank or withdrawn e.g
invested 200000 pounds in the first year
profit in the first year 30000
profit second year 40000
profit third year 45000
so
the total profit end of year three 115000 can we withdraw this money (sole trader) or leave it in the business account or do we have to reinvest it.

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Re: How the money must be used

Post by cappachino » Mon Dec 01, 2014 1:37 am

What about the profit made from the business can it stay in the business bank account
also can it be spent for personal expenses (withdrawal)

whiteroses
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Re: How the money must be used

Post by whiteroses » Sun Dec 07, 2014 8:44 am

ishfaqsangra wrote:public.enquiries@homeoffice.gsi.gov.uk

I think that would work
I emailed on that ID in November but didn't hear back.

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Re: How the money must be used

Post by whiteroses » Tue Dec 16, 2014 12:37 pm


ishfaqsangra
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Re: How the money must be used

Post by ishfaqsangra » Tue Dec 16, 2014 1:01 pm

Can you please point out changes regarding"How the money must be used" if any I have gone through quickly but could not get info (I might go through in detail later)

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