ESC

Click the "allow" button if you want to receive important news and updates from immigrationboards.com


Immigrationboards.com: Immigration, work visa and work permit discussion board

Welcome to immigrationboards.com!

Login Register Do not show

50k Investment as Director Loan ?

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

Moderators: Casa, push, JAJ, ca.funke, Amber, zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, meself2, geriatrix, John, ChetanOjha, archigabe

Locked
S&T
Junior Member
Posts: 63
Joined: Sun Oct 13, 2013 11:47 am
Location: UK
Mood:
United States of America

50k Investment as Director Loan ?

Post by S&T » Thu Aug 20, 2015 8:27 pm

Policy guidance states : " Director’s loan
If you have made the investment in the form of a director’s loan, it must be shown in the
relevant set of accounts provided, and you must also provide a legal agreement, between
you (in the name that appears on the application) and the company.
This agreement should show:
 the terms of the loan;
 any interest that is payable;
 the period of the loan; and
 that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated
in favour of third-party creditors, we will not accept the loan for the award of points."

Can someone please clearly explain what they mean by this " If it is not clear from the information provided that the loan is unsecured and subordinated in favour of third-party creditors, we will not accept the loan for the award of points. "

TIA
Thanks & Regards
S&T
“No one has ever become poor by Helping”

S&T
Junior Member
Posts: 63
Joined: Sun Oct 13, 2013 11:47 am
Location: UK
Mood:
United States of America

Acceptable employment guidance

Post by S&T » Thu Aug 20, 2015 9:00 pm

We would consider the following as acceptable employment:
 The working hours of two part-time workers can be combined to add up to 30 hours a
week or more and form the equivalent of one full-time post.
 A worker who is employed for part of a year and then leaves the post can be replaced by
another worker so that the employment as a whole adds up to 12 months. However, if
there is a gap between one worker leaving a post and another worker starting
employment, the period when the post is not filled will not be counted. Only periods
during which a worker is employed in a post will be considered.
Tier 1(Entrepreneur) Policy Guidance version 07/2015 - Page 49
The policy guidance previously included these examples:
 A single worker can be employed for 24 months. The employment can also be made up of
a six-month period for one worker and an 18-month period for another.
 If four workers are employed for 26 weeks (six months) each, their hours of
employment may be added together.
These examples go further than the Immigration Rules. The Immigration Rules at Appendix A
Tables 5 and 6 state that you must create the equivalent of two or more full-time jobs that have
existed for a total of at least 12 months during your last period of leave as an Entrepreneur in
order to extend your leave or meet the settlement criteria. Appendix A, paragraphs 49 and 50
provide additional explanation.
For those applying for entry clearance or switching into the route from 6 April 2014, the
employment must be for at least two separate jobs, and must exist for at least a full 12 months
each.
Transitional arrangement – people who successfully applied to enter the route before 6 April
2014 may continue to employ:
 a single worker for 24 months; or
 one worker for 6 months and one for 18 months; or
 four workers for six months each
and still meet the requirements when they apply for extensions and for settlement. Anyone
applying to enter the route on or after 6 April 2014 must create employment for at least two
separate people and the jobs must exist for at least a full 12 months each.


I got my initial visa approved on 3rd April 2014, so can i employ four full-time workers for six months each? will that fulfill the requirement of employing and created the equivalent of at least two new full-time jobs for persons settled in the UK as per the rules ?
Thanks & Regards
S&T
“No one has ever become poor by Helping”

S&T
Junior Member
Posts: 63
Joined: Sun Oct 13, 2013 11:47 am
Location: UK
Mood:
United States of America

Re: 50k Investment as Director Loan ?

Post by S&T » Sun Oct 18, 2015 11:39 am

S&T wrote:Policy guidance states : " Director’s loan
If you have made the investment in the form of a director’s loan, it must be shown in the
relevant set of accounts provided, and you must also provide a legal agreement, between
you (in the name that appears on the application) and the company.
This agreement should show:
 the terms of the loan;
 any interest that is payable;
 the period of the loan; and
 that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated
in favour of third-party creditors, we will not accept the loan for the award of points."

Can someone please clearly explain what they mean by this " If it is not clear from the information provided that the loan is unsecured and subordinated in favour of third-party creditors, we will not accept the loan for the award of points. "

TIA
Please can some one ans this ?
Thanks & Regards
S&T
“No one has ever become poor by Helping”

naveediiqbal
Senior Member
Posts: 606
Joined: Sat May 26, 2012 4:49 pm
Pakistan

Re: 50k Investment as Director Loan ?

Post by naveediiqbal » Sun Oct 18, 2015 11:43 am

S&T wrote:
S&T wrote:Policy guidance states : " Director’s loan
If you have made the investment in the form of a director’s loan, it must be shown in the
relevant set of accounts provided, and you must also provide a legal agreement, between
you (in the name that appears on the application) and the company.
This agreement should show:
 the terms of the loan;
 any interest that is payable;
 the period of the loan; and
 that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated
in favour of third-party creditors, we will not accept the loan for the award of points."

Can someone please clearly explain what they mean by this " If it is not clear from the information provided that the loan is unsecured and subordinated in favour of third-party creditors, we will not accept the loan for the award of points. "

TIA
Please can some one ans this ?
Make it clear in directors loan agreement and notes to the accounts and mention both places reference in your cover letter

Locked
cron