extension of Tier 1 50k

HI

I have a question bro

I have a extension on 2017 and i am running my business but i have not transfer the money from my saving to business account yet , would this be a problem , i thought i will slowly slowly transfer the money from this year to make 50k , is this gonna effect to my extension? have someone experience any problem before

second question

all the accountant normal ones says all Acca registered so can i use any normal accountant like street account for my case?


Third

do i have to show 3 years of business insurance or i can show last year insurance when applying for extension

please reply asap ? i am thanking you in advance

hello,

1: HO gives you three years to invest money in UK business, so you can invest it any time within these three year not a problem.

2: an accountant should be ACCA practitioner or CA, (not just ACCA member (please be very careful)) ACCA issues a practitioner number which you can obtain from your accountant and check on ACCA website.

3: there is not any requirement to submit all three years insurance, last year one would be fine.

Hope this helps

shaz007 wrote:HI

I have a question bro

I have a extension on 2017 and i am running my business but i have not transfer the money from my saving to business account yet , would this be a problem , i thought i will slowly slowly transfer the money from this year to make 50k , is this gonna effect to my extension? have someone experience any problem before

second question

all the accountant normal ones says all Acca registered so can i use any normal accountant like street account for my case?


Third

do i have to show 3 years of business insurance or i can show last year insurance when applying for extension

please reply asap ? i am thanking you in advance

1. Investing money into a business must be in the form of shares or cash(Director's loan) during the initial 3 years of grant however I suggest you do it in one go to avoid unnecessary hassle in future. You need to draft a loan agreement (between you and your company) that your £50K will be given as an unsecured loan which is subordinated in favour of 3rd party creditors, before transferring money to your company. I highly suggest you do it in one step to avoid complications with your loan agreement and to simplify the evidence you need to show during extension. During your extension you simply will show that £50K was invested fully in your unaudited accounts, you show the business bank statements that your company received the money from you + the loan agreement.

2. Ask the accountant first. Evidence submitted from accountants must be members one of the following supervisory bodies:

Institute of Chartered Accountants in England and Wales, (ICAEW)
Institute of Chartered Accountants in Scotland,
Institute of Chartered Accountants in Ireland,
Association of Chartered Certified Accountants (ACCA)
Association of Authorised Public Accountants,
Chartered Institute of Public Finance and Accountancy,
Institute of Financial Accountants,
Chartered Institute of Management Accountants,
Association of International Accountants,
Association of Accounting Technicians

3. I have not seen anywhere in the guide or immigration rules that you need to submit insurance documents/evidence. I suggest you do not send extra documents that they have not asked for.

Thanks Bro Irfanmz for your advice . and Zimba88 bro i don't understand the loan things can you please explain me what exactly you mean load agreement and why i need to make a loan? cant i transfer the money one by one? or do you mean to say that if i have not transferred it yet , i can make a loan agreement that the money i have taken as a personnel loan from my company?


Please explain and clarify this point

shaz007 wrote:Thanks Bro Irfanmz for your advice . and Zimba88 bro i don't understand the loan things can you please explain me what exactly you mean load agreement and why i need to make a loan? cant i transfer the money one by one? or do you mean to say that if i have not transferred it yet , i can make a loan agreement that the money i have taken as a personnel loan from my company?


Please explain and clarify this point

You really need to read the guide. You cannot claim points for investment if you simply transfer cash from your account to the business unless you buy shares from your company in return.
When you simply transfer money from your account to your company, under legal terms you (as a director) are lending/loaning money to your company, that is why this is called a Director's Loan. Home office does NOT accept this form of loan as an investment UNLESS you draft a loan agreement with your company before transferring money that clearly states your £50K will be given to the company as an unsecured loan which is subordinated in favour of 3rd party creditors. This is clearly explained in the guide and you need to prepare the loan agreement accordingly. I suggested you transfer money in on go to make things easier but you can transfer the money in instalments if you want. Then your loan agreement must clearly says that you are lending money in this fashion or you have to prepare multiple loan agreements.

Bro I thought that if you transfer the money from your current account to business it is a prove you have invested and when you use it to run the business like employer salary , operating expense and other expense it will fit into all the business money i have invested.

can you provide me director loan agreement template please?

shaz007 wrote:Bro I thought that if you transfer the money from your current account to business it is a prove you have invested and when you use it to run the business like employer salary , operating expense and other expense it will fit into all the business money i have invested.

NO. I repeat again: You must read the guide if you want to get your extension without any issues as everything is clearly explained there Please contact a business lawyer/solicitor if you need to draft a loan agreement.

[quote="Irfanmz"]hello,


2: an accountant should be ACCA practitioner or CA, (not just ACCA member (please be very careful)) ACCA issues a practitioner number which you can obtain from your accountant and check on ACCA website.



My accountant said he is a member of Chartered Institute of Management Accountants (CIMA) and he showed from CIMA websit on member section.

I couldnt fine "practitioner" word from guidance about the accountants.
just this:

The accountant must be a member of a recognised UK supervisory body (listed below). If they are not, you cannot accept this item of evidence and you must not award any points for this evidence.
 Institute of Chartered Accountants in England and Wales (ICAEW)
 Institute of Chartered Accountants in Scotland (ICAS)
 Institute of Chartered Accountants in Ireland (ICAI)
 Association of Chartered Certified Accountants (ACCA)
 Association of Authorised Public Accountants (AAPA)
 the Charted Institute of Public Finance and Accountancy (CIPFA)
 the Institute of Financial Accountants (IFA)
 the Chartered Institute of Management Accountants (CIMA)
 the Association of International Accountants (AIA)

Please advise where did you find that.

Thanks

You are fine as your accountant is member of an acceptable body.