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Tier 1 £50000 Extension - Business Investment

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

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ceobot
Junior Member
Posts: 81
Joined: Wed Jul 20, 2011 4:42 pm

Tier 1 £50000 Extension - Business Investment

Post by ceobot » Wed Nov 19, 2014 1:09 pm

Hi Guys,

I've got my Tier 1 £50000 enterpreneur visa approximately half year ago (April 2014) and now I have one issue.

The problem is that after initial investment of £6000 (transfer from personal account to business) my business started generating profit and actaully I am able to cover all my expenses (marketing, advertising, salaries, office etc) from this profit.

So even if I invest another £44000 from my personal account I don't know how to spend them.

My question is: Can I invest £44000 from my personal account and using my business account invest these money in UK investment funds, bonds, other companies shares etc. After this I will be confident that £50000 was invested and I will continue running my company and use my profit for all types of expenses.

I didn't find in Extension Guidance that it is not allowed to ivest money in investment funds, shares, stocks, bonds etc.

What do you think ?

samaygrg
Senior Member
Posts: 607
Joined: Sat Jun 09, 2012 11:12 pm
Location: United Kingdom

Re: Tier 1 £50000 Extension - Business Investment

Post by samaygrg » Wed Nov 19, 2014 3:11 pm

That's my question too. Guys, please supplement us your views.

TA

Expatinlaw
Newly Registered
Posts: 17
Joined: Tue Oct 14, 2014 10:04 am
Location: London

Re: Tier 1 £50000 Extension - Business Investment

Post by Expatinlaw » Wed Nov 19, 2014 4:12 pm

The same here! I`m confused about it as well. I`m thinking to invest £50k through loan argeement, where stipulate that the whole amount is going for business development purposes only" and spend it all for a Business Developmet Manager`s salary, marketing, adverts etc.... Does it fly like that anybody?

ishfaqsangra
- thin ice -
Posts: 866
Joined: Wed Aug 14, 2013 10:10 pm
Pakistan

Re: Tier 1 £50000 Extension - Business Investment

Post by ishfaqsangra » Wed Nov 19, 2014 5:10 pm

Nice question but I think there are so many in the same boat.
Once business has started generating profit there are difficulties to invest the required amount ,one can not simply through it just for the sake of extension.
Lets hope for good suggestions

GLL
BANNED
Posts: 56
Joined: Thu Jul 17, 2014 2:48 pm

Re: Tier 1 £50000 Extension - Business Investment

Post by GLL » Wed Nov 19, 2014 5:30 pm

ceobot wrote:Hi Guys,

I've got my Tier 1 £50000 enterpreneur visa approximately half year ago (April 2014) and now I have one issue.

The problem is that after initial investment of £6000 (transfer from personal account to business) my business started generating profit and actaully I am able to cover all my expenses (marketing, advertising, salaries, office etc) from this profit.

So even if I invest another £44000 from my personal account I don't know how to spend them.

My question is: Can I invest £44000 from my personal account and using my business account invest these money in UK investment funds, bonds, other companies shares etc. After this I will be confident that £50000 was invested and I will continue running my company and use my profit for all types of expenses.

I didn't find in Extension Guidance that it is not allowed to ivest money in investment funds, shares, stocks, bonds etc.

What do you think ?
If you generate profit, you can invest the profit you generated into anything you wish funds, shares, stocks, etc and then invest your personal money from your account to spend them according to the visa rules.
If this is still not a solution for you, you can invest the remaining amount in another business or company, as this is acceptable according to the visa rules.

Expatinlaw
Newly Registered
Posts: 17
Joined: Tue Oct 14, 2014 10:04 am
Location: London

Re: Tier 1 £50000 Extension - Business Investment

Post by Expatinlaw » Wed Nov 19, 2014 6:15 pm

GLL wrote:
ceobot wrote: If you generate profit, you can invest the profit you generated into anything you wish funds, shares, stocks, etc and then invest your personal money from your account to spend them according to the visa rules.
If this is still not a solution for you, you can invest the remaining amount in another business or company, as this is acceptable according to the visa rules.
Thanks! But, how does it practicly work? Can I transfer my retained profit to business saving acc for example and then transfer £50K from my personal acc to business to spend it for the purpose of my extention? In other words how I shall separate my money (investment) from business money (generated profit) ?

ishfaqsangra
- thin ice -
Posts: 866
Joined: Wed Aug 14, 2013 10:10 pm
Pakistan

Re: Tier 1 £50000 Extension - Business Investment

Post by ishfaqsangra » Wed Nov 19, 2014 6:56 pm

put profits in savings and invest from an investment account seems ?

ceobot
Junior Member
Posts: 81
Joined: Wed Jul 20, 2011 4:42 pm

Re: Tier 1 £50000 Extension - Business Investment

Post by ceobot » Sun Nov 23, 2014 6:32 pm

My question was not answered. So I am still looking for more information or advice. Can my investments from my personal account to my company's business acoount (by the way of director's loan) be used to invest money in UK company's shares, UK bonds etc.

JohnOhn
Junior Member
Posts: 84
Joined: Fri Mar 29, 2013 10:18 am

Re: Tier 1 £50000 Extension - Business Investment

Post by JohnOhn » Sun Nov 23, 2014 11:09 pm

This question gets asked frequently and I think many people are just over thinking it. HO wants to see that you invested £200k/50k of your own funds and that the business spent those funds over three years and that is all.

Most companies will not blow through £200k before they make any money and HO know this. The UK government WANTS your business to be SUCCESSFUL so you pay taxes and hire more employees. They don't want to force you to see a loss until your investment is spent.

At the end of three years just show in your company accounts that you've invested the funds you are supposed to and that your business has spent that amount of funds.

Again, the HO wants you to be successful. If you've only invested £25k before you have a great year and make, for example, £700,000 in profit, just make sure you've invested another £25k and the business spends that much more before your three years is up.

GLL
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Posts: 56
Joined: Thu Jul 17, 2014 2:48 pm

Re: Tier 1 £50000 Extension - Business Investment

Post by GLL » Fri Nov 28, 2014 11:17 am

ceobot wrote:My question was not answered. So I am still looking for more information or advice. Can my investments from my personal account to my company's business acoount (by the way of director's loan) be used to invest money in UK company's shares, UK bonds etc.
The answer is NO, UKVI doesn't consider investment made in businesses other than the entrepreneur's own business.
You must invest £50k in your business and spend them all in relation to your business business. If your business is making profits take the profits and invest the money personally in UK stocks or anything you wish.

cappachino
Member of Standing
Posts: 490
Joined: Mon Mar 25, 2013 9:24 pm
Location: LONDON

Re: Tier 1 £50000 Extension - Business Investment

Post by cappachino » Mon Dec 01, 2014 1:13 am

JohnOhn wrote:This question gets asked frequently and I think many people are just over thinking it. HO wants to see that you invested £200k/50k of your own funds and that the business spent those funds over three years and that is all.

Most companies will not blow through £200k before they make any money and HO know this. The UK government WANTS your business to be SUCCESSFUL so you pay taxes and hire more employees. They don't want to force you to see a loss until your investment is spent.

At the end of three years just show in your company accounts that you've invested the funds you are supposed to and that your business has spent that amount of funds.

Again, the HO wants you to be successful. If you've only invested £25k before you have a great year and make, for example, £700,000 in profit, just make sure you've invested another £25k and the business spends that much more before your three years is up.
On the other hand if you have invested the required amount can you use the profit made from the business in any way including withdrawal for your personal expenses
e.g for tier 1 entrepreneur 200k category
invested amount first year 40000 made a loss end of first year
invested 120000 second year made profit of 20000
invested 40000 (not using last years profit)third year made profit of 30000
Can we use the profit from second year (20000) and third year ( 30000) for personal use
e.g. based on three separate sole trader businesses

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