Advice needed! Extension Tier 1 Entrepreneur

Dear Entrepreneurs!

I would appreciate any advice related to my situation as this is my ever first post on this forum so please apologies in advance if anything is in repetitive.

My extension is due in April 2016 and I am on 50K route tier 1 entrepreneur at the moment.

Questions:

1) I got my visa in April 2013 and by the time i got visa i had already invested 13k. As soon as i got visa in April 2013 I needed money which I then transferred the rest of the 35k from my personal to business account in 3 to 4 different transactions within 1 month which was may 2013 and used all the money.

2) I am now confused that how should i proceed further to get the 35 k back into my account and invest this 35 k in the next 16 month before my extension is due. Also how can i cover the 35k in my extension which i did withdraw for some reasons.

3) Please note the money 35k transferred from personal account to business showed as invested with invoice references and then i used cheque to get the money out from the business account which will really cause me trouble when i will go for extension because after that i have one long term contract and getting regular money from that 1 and only contract.

4) My accountant advised me that i should transfer the money again from my personal account to business account in different investments ( different transaction to cover the 35k) in the next 16 months.

5) For the job creation we have to create 2 jobs. I have read on HO website and it says we can go for different combinations like 24 months for 1, 6 months for 4 employee to make 24 months or 12 months for 2. My question is can i get 2 employees for 6 months and 1 for 12 months to cover 24 months in total. Is it ok?

I would appreciate any advice related to my situation.
All advice are welcome.
Much appreciated,
IR

89 reviews so far and no reply.

Can some please advise?

Much appreciated!

35000 transferred from personal to business as what(If directors loan then confusion is with director's loan agreement make it backdated)
second you draw money out with cheques with no reason(It should have been as salaries,expenses etc,) now it is difficult to understand?If you can adjust it in a way(may be accountant) then it will be counted as investment why you need another transfers?
Contract (there was no contract so how did you get visa may be on the basis of actively trading),money is fine but try to get another contract to show multiple clients.
combination of hours for job creation is fine .
If you are unable to justify that £35000 out from business account then you need to show £50,000 to be transferred into business account and spent in the next 16 months substracting money coming in from services/products and taken out by director.
That's what I understand ,wait for some good opinions/suggestions

Thanks for your time Ishfaq.

I indeed completed the trading contract which i showed at the time of application within three months and then i got few small contracts also in the first 6 months. After that I am on a 12 months trading contract with a company but did not get any further contracts after that and the money 2k was coming in and going out as expenses but i am totally agree that I should start working on more contracts.

The problem confusing me is that I have withdrawn about 35 k in one month and since after that it is about an year or so I have been getting a fixed 2k plus money from this trading contract. If i am going to say in extension that I have invested 35k then there should have been some other transactions and money come into the account in the last 12 months also which it did not come so is the worry that if i have invested 35k into the business how come i was only getting around 2k from one contract not from anywhere else.

It does make sense if i start getting new contract from now to the next 16months it will show business in running good but 35k investment still need to be justified or else I have the option to resubmit the money from personal to business transfer and show the investment now to onwards.

Sorry it is still a confusion for me so please give your opinions as well which are very important!

Best Regards,
IR

Money was coming in 2k makes it 24k/anum which is not a bad income for entrerprenuer,I am working on 3 contracts and around 27k is incoming per annum so that is not an issue,contracts can be increased,even could be nill and you still show investment on marketing or salaries as if contract is finished you can not kick your employees so that is justifiable,the problem is you withdrawn money from business account 35k in ONE month ,thats strange,no one even did tell you,it is impossible to justify that investment of 35k in one month unless you invest in property etc and paid down payment or depending on the nature of business

If your intention was to withdraw you should have not transferred to company account.

The best option is again put money back in and invest reasonably

Thanks Ishfaq for your valuable time again. I do agree that I need to re-invest this money to the business again and my accountant advised me to see a lawyer who can advise further.

As per your suggestion I believe any combination of 2 employees should be ok as soon as it is covering 24 months and I am aware it is only for those who applied for tier1 ent on or before april2013.

I have 1 employee for 6 months atm and will go for another 1 before 7 months to extension and 1 employee 13 months to extension to cover my 24 months in total.

Thanks for the suggestions which I will keep in my mind for sure.

Best Regards,
IR.

Ishfaq bhi, Please advise how are you transferring money for your 3 of your contracts into the business account. Are you depositing money monthly or is it depending upon the payment you receive from the client end. Are you doing the long term contracts or shot term ones?

why I am asking for is I am an IT consultant and for e.g. the last contract I have done was 3 months one and the amount agreed was 4k. I received the money from client in 3 payment like: 300,2700 and 1000 in three months. Now I am working on a long term contract which is 12 months with the 3rd party company and working on site and the agency is paying me weekly which is a fix amount for my 38 hours per week with the company I work for. I am roughly getting 2500 per month for the contract which is 12 months long. whatever the hours i will work on site every week I will get the money as per the rate agreed in the contract.

On the other side, please advise is it ok to do some small pieces of work for some clients on hourly basis and then they transfer or give me cash which i can transfer in cash in my business account with the company name reference name which can come to the bank statement with the cash deposit and company name.

On the other hand I am still working out how to cover the 35k withdrawn from my account last may2013 although i did deposit like 1500 after that time in the last 1 year. More details of the money is that 20k withdrawn from business account in cheques and 10k transferred to two companies. So I need to find out the way how the money can come back to the business account from personal account again and invest them again.

Thanks for all help so far and would be really appreciate if more senior members can see my last 3 posts please and advise?

Best Regards,
IR

I work as an adviser and do provide training to GP Practice staff regarding management and clinical audit.My contract is fixed amount,no hourly rate except training sessions but for management my company is responsible for their audit claims to be carried out monthly and quarterly and yearly as well. mine comes in at different time periods.training session could be 1,2,3 or just a whole day,audit yearly

As far as my money transferred to business has been directors loan even before I applied for visa,29,000 till date
I have only withdrawn to pay employees,expenses with invoices.I might get another contact and go for Accelerated route (5 employees/24 months)
You need to justify in and out to be on safe side so please hire services of a good accountant

Ishfaq , irana,

Simply keep your accounts to show investment, directors loan, is not investment, an interim measure.

Do not try to complicate your case. Remember caseworkers at ho. Read simple stuff. Why must you go the complex route?

Thanks enterp10 for your advise.

Can you please see my last few posts related to 35k money which I did withdraw next month after I got visa in may-2013. The confusion is how can i justify the money took out from the account in month as its difficult to show this big money in investment or projects. My accountant is also confused about this.

Best Regards,
IR

Irana,

When you do business you will need to spend business money say for inventory.

But if you take out business money for personal reasons. 1st it must be authorized by directors as a loan from co to you, at an agreed interest, and time to pay back to business, its like business puts money in bank term deposit.

Thats one way to take money out of business and put back. But in this period your business must be a ' going concern' an accounti g term meaning business is on. In principal you have to keep business and personal a/c seperate. I am suggesting above because you have already taken money out in past

Is your business proforming today and has been during the time you took out the money?. 2nd are you able to put back the money?

You will need to Very Clearly explain that ghe money taken by you was a Loan from the company, this money was extra an a company decision was made to 'invest' in term deposit, in a better than bank interest rate. And was returned with interest at the end of Agreed Term.

Let me know if you understand

Thanks enterp10 for your valuable advise.

The business was having a trading contract of 2400 per month from that time until now. In the last 1 and half year the business was having 1 trading contract of 2400 per months (around 27k per annum) which was not enough but the money was coming and going out with different expenditure of company so it was not very profitable. But for the last 3 to 4 months , I am having 2 trading contracts money is coming like 3k per month and business expenditure are 1000 to 1 employee + 750 director pay +400 fuel expense so its like 800 to 900 profit etc.

I am happy to put the money back any time and thinking how I should invest this sensibility and divide in to different month to put this back and invest in the business. I have like 15 month to go for extension. In short i have 15 month and 30k to put this back in the account.

So you think i should transfer all the money back in total or should I invest the money back into the account in chunks and then invest. I really like this suggestion to put the money back with interest to clear my confusion. Also my account is asking in regards to the account as he showed 13k investment in the first year and i have to do the tax return on 31st of Jan, 2015 so my account is asking how much money should he show in the account for this year as I have taken 30k in that year so there is a confusion here as well.

Thanks for your help in advance.

Best Regards,
IR

Anymore suggestions please?

Hi Irana
I agree with Entreprenure 10 jobs' viewpoint. There is always an way around. We all tend to do mistakes knowingly unknowingly.

So in your 35K withdrawal case, you have still 16 months time to amend it. With the help of a good accountant, you can write justifications letters why you taken that out [Possibly you can give reason of cost efficiency due to incurring interest if you charge interest in your DL, or you can write a note, you earn better interest keeping that lump sum out in your personal saving account] and on top of that; your business also doesn't require that huge amount at once. You also can amend in your DL agreement, you prefer to pay in an installment basis or as and when needed basis.

Therefore, I don't think you need to be too much worried, just make your accountant work hard to make all these errors fall in order again.

This is not an expert idea, though, as we all are learning at the moment.
So, you better wait for other Gurus ideas as well, along.

Cheers

Entreprenure 10 jobs wrote:Irana,

When you do business you will need to spend business money say for inventory.

But if you take out business money for personal reasons. 1st it must be authorized by directors as a loan from co to you, at an agreed interest, and time to pay back to business, its like business puts money in bank term deposit.

Thats one way to take money out of business and put back. But in this period your business must be a ' going concern' an accounti g term meaning business is on. In principal you have to keep business and personal a/c seperate. I am suggesting above because you have already taken money out in past

Is your business proforming today and has been during the time you took out the money?. 2nd are you able to put back the money?

You will need to Very Clearly explain that ghe money taken by you was a Loan from the company, this money was extra an a company decision was made to 'invest' in term deposit, in a better than bank interest rate. And was returned with interest at the end of Agreed Term.

Let me know if you understand

Regarding no. of staff to be employed, please read this link where we have already discussed.

http://www.immigrationboards.com/uk-tie ... 80085.html

Thanks a lot for the valuable suggestion and yes lets wait for the Guru's advise as well.