Director loans & dividend

HI guys!

I have few questions regarding entrepreneur visa extension. It will really helpful if someone shed lights on it.


1) Is it OK to transfer 30k out of 50k in cash deposit to business bank account and rest 20k via personal to bussiness bank transfer by using the reference as INVESTMENT AS DIRECTOR LOAN?

2)Bit unsure if company in lost are we allowed to take dividend?

Many Thanks for reading this guys.

MH

a--R wrote:HI guys!

I have few questions regarding entrepreneur visa extension. It will really helpful if someone shed lights on it.


1) Is it OK to transfer 30k out of 50k in cash deposit to business bank account and rest 20k via personal to bussiness bank transfer by using the reference as INVESTMENT AS DIRECTOR LOAN?

2)Bit unsure if company in lost are we allowed to take dividend?

Many Thanks for reading this guys.

MH

Hello a--R

1) If you deposit in Cash how can you prove to UKVI that it was you who deposited that cash and source of the money, I guess it would give UKVI more questions to grill you when interviewing

2) Dividend is something that is paid to shareholders from the profit, so I don't think so you can take dividends if your company is in loss.

Cash deposit may cause problems not only from UKVI but also also from HMRC at latter stage as to prove the source of the funds and related tax complications would be a mammoth task!

Dividen can only be paid if the business is profitable and it cannot be more than the profit made by the company!!