Tier 1 50k- Investment issue

Hello everyone,

During the course of the financial year end August 2015, I spent money from the business on ourselves.

We believed that the company was in profit and we would be able to transfer the money to ourselves and spend it personally. However, we had not accounted for the previous year’s losses. Therefore our accounts were not balanced for year-end August 2015. our accountant informed us that the money spent would have to be deducted from the Directors’ Loan. The value deducted that we spent on ourselves was £12,260. This money was not invested into the company, it was taken by you from the company and spent on yourselves.

To rectify this issue, we then place further money into the company’s bank account during June 2016. This money originated from a successful personal injury claim and from family members. At present the Directors loan is £50,946.00.

1st year end Aug 2014 DL= 50,000
2nd year end Aug 2015 DL= 37,740
3rd year end Aug 2016 DL= 50,946


I believe the Home Office could argue that the funds you originally relied on have not been invested and this amounts to a ground for refusal. Instead, part of the funds have been invested and the balance comprises of funds not relied on in the original application.

My lawyer said Whilst the rules do not clearly specify that it must be the funds originally relied on in the application, relying on other funds goes against the original terms you were granted leave to remain under the Tier 1 (Entrepreneur) route in the first place. It could be argued that the funds have not been ‘genuinely’ invested. However, this would not be a clear cut argument for the Home Office to make. I will do what I can to avoid this conclusion in my submissions to the Home Office but you need to be aware of the possibility.

Please help and Advice me.

Thanks

HO does not care about nitty gritty details of your business, they want to see that you invested the money and did not spend it on yourself or on things that they do not count. There are many legal things you can do in your business that HO does not accept or recognize for the purpose of your visa extension. You simply need to align your business practices with what the immigration rules require to avoid any issues with HO.

Thanks Zimba. As I said we did spent some money on ourselvs but gave that money back to business in the next year. Will that be OK?

xeesee wrote:Thanks Zimba. As I said we did spent some money on ourselvs but gave that money back to business in the next year. Will that be OK?

yes