Employee's Salaries as an investment

Hi Gurus,

Can anybody give me authentic information about employee salary as part of investment?
Can we show employee wages as an investment aswell?

Please Guys help me If anybody sure about it.

Regards

Can anybody please answer this question?

Please please guys.......

As far according to my knowledge

No they are considered as expenses for the period and not counted as investment

Count toward investment 100 sure

Yes, all genuine expenses including employee salaries are counted towards investment.

Entrepreneur9 wrote:Yes, all genuine expenses including employee salaries are counted towards investment.

Thanks for your reply guys. But I have read somewhere in past that Salaries will not count as an investment Its a running cost of a business. I also think If we count it as an investment we can easily get rid of £25K to £30K out of total £50K. (Salaries of two employee's).
Please any body shed some light on it....... It is very important issue guys

Hi Ali,

As far as my understanding goes and as per my accountant; Employees salary will be counted as investment only after 50K is transferred into your account from your personal account.

For Eg: You have an employee working from April to December. And you transfer your 50K to your business account in July. Then the employees salary from July to December will be counted as investment and not between April to June.

Also if you are transferring the money in parts i.e. of 50K you only transfer 20K then the investment will be counted for only 20K.

Hope this helps.

I am not an exert. You can still speak to experts.

@ Ali7602,

Businesses don't just grow in a day, they need investment to grow over time. Part of the investment for growing a business is staff salary. So to answer your question, staff salary are accepted as part of your 50k investment. The only salary that is not accepted for Tier 1 entrepreneur visa is the director salary (remuneration).

The only issue now is that you should be able to show that your business is actively trading and thus the need to pay the salary to your staff. If you just pay staff without documents to show for trading, then you may have an issue if Home Office decide to question further base on genuine entrepreneur test.

how do you prove that u r genuienly tradin g? any sample docs ?