Entrepreneur Entension Questions

I got my visa in 2013 and heading towards my extension in couple of months. I have some questions and i would appreciate your opinion

My questions are as follows
Q1. Will it have an impact if my business did make loss in first 2 years and eventually i closed it down. And started a new business in third year?

Q2 We were a team of two members who applied for visa together. Now do we both need to be partner in all the businesses thAt we started? Or can we be self employed sole trader for two different businesses and operating them independantly? As in do I need to show access to both businesses? And vice versa

Q3 for proof of investment, ltd companies can show director loan agreement etc. But we are operating as sole trader, what proof can we submit? Accountant letter? Balance sheet? Or something else

Q4 lastly, with ukba do we have to submit final accounts that we have submitted to hmrc or do we have to submit management accounts?

Your opinion is highly appreciated.

Hi 10020132

Please note this is my understanding and how i have interpreted the Home Office guidance.

Q1. Will it have an impact if my business did make loss in first 2 years and eventually i closed it down. And started a new business in third year?

No, it does not matter if the business made a profit or loss, also it does not matter if you closed the business and opened a new business.

Q2 We were a team of two members who applied for visa together. Now do we both need to be partner in all the businesses thAt we started? Or can we be self employed sole trader for two different businesses and operating them independantly? As in do I need to show access to both businesses? And vice versa

If you are operating the business's separately then you will have to show a £50,000 investment from each team member, it would be easier to add each other to the relevant business's and bank accounts.

Q3 for proof of investment, ltd companies can show director loan agreement etc. But we are operating as sole trader, what proof can we submit? Accountant letter? Balance sheet? Or something else

My understanding of this is that you would have to show the actual investment into the business/s so an accountants letter would suffice along with the accounts.

Q4 lastly, with ukba do we have to submit final accounts that we have submitted to hmrc or do we have to submit management accounts?

I would submit all accounts to UKBA, final accounts as well as management accounts

Saleem

Thank You very much Saleem. I understood everything except question 2. We are a team on 200k route. So you meant that 200k should be coming from both of us?

And since we were operating independantly business's for 3 years now, what can we do at last minute to show that I am related to the other business and vice versa

And many thanks for your advise and your time

Hi 10020132

No problem, happy to help

Regards question 2, if you are on the 200k route then same would apply.
Being honest, i can't work out (financially) how you have started 2 business's on a sole trader basis and invested 200k. it would have made much more sense financially to go down the limited company route.

My suggestion would be to add each other to your sole trader (business) accounts and have business cards etc made up to show activity in each business.

Hope that makes sense
Saleem

Hi Guys my extension would be in MArch 2016, I am preparing for that contact with me so we can help each other ...

Yes i understand saleem
But at that time i didnt know the downsides to it. And now when i know, its too late

don't worry....... i'm sure everything will work out fine

Thanks anna & saleem

Hi saleem and everyone else,
Can you tell a website from where i can get a template for that accountant letter

Can anyone please give a template for letter from accountant as I couldn't find one in guidance

Hi

Apologies if i explained incorrectly. What i mean is that you will require a letter from your own accountant regards the money you have invested. He will have all the paperwork from the previous 2+ years so he can break down your exact investment in an easy to read format.

This will also make it easier for yourself to explain if you are questioned by ukba.

Thanks Anna but my point is that is there a specific format that ukba needs or can he justwrite it in hs own words

Any suggestions?

AANA wrote:Hi 10020132

Please note this is my understanding and how i have interpreted the Home Office guidance.

Q1. Will it have an impact if my business did make loss in first 2 years and eventually i closed it down. And started a new business in third year?

No, it does not matter if the business made a profit or loss, also it does not matter if you closed the business and opened a new business.

Q2 We were a team of two members who applied for visa together. Now do we both need to be partner in all the businesses thAt we started? Or can we be self employed sole trader for two different businesses and operating them independantly? As in do I need to show access to both businesses? And vice versa

If you are operating the business's separately then you will have to show a £50,000 investment from each team member, it would be easier to add each other to the relevant business's and bank accounts.

Q3 for proof of investment, ltd companies can show director loan agreement etc. But we are operating as sole trader, what proof can we submit? Accountant letter? Balance sheet? Or something else

My understanding of this is that you would have to show the actual investment into the business/s so an accountants letter would suffice along with the accounts.

Q4 lastly, with ukba do we have to submit final accounts that we have submitted to hmrc or do we have to submit management accounts?

I would submit all accounts to UKBA, final accounts as well as management accounts

Saleem

Hi,

i am in similar situation, i got my tier 1 entrepreneur 50k PSW route individually and was running IT consultancy but unfortunately i was not getting much work. Then i have decided to start something else. Now i am interested to start business and the investment is approximately 75K. if i add someone as an partner to invest 25k in the business as an 30% shareholding and my investment would be 50k (70% shareholading). will it be okay for my extension??????

awaiting for your replies.

Thanks

AANA wrote:Hi 10020132

Please note this is my understanding and how i have interpreted the Home Office guidance.

Q1. Will it have an impact if my business did make loss in first 2 years and eventually i closed it down. And started a new business in third year?

No, it does not matter if the business made a profit or loss, also it does not matter if you closed the business and opened a new business.

Q2 We were a team of two members who applied for visa together. Now do we both need to be partner in all the businesses thAt we started? Or can we be self employed sole trader for two different businesses and operating them independantly? As in do I need to show access to both businesses? And vice versa

If you are operating the business's separately then you will have to show a £50,000 investment from each team member, it would be easier to add each other to the relevant business's and bank accounts.

Q3 for proof of investment, ltd companies can show director loan agreement etc. But we are operating as sole trader, what proof can we submit? Accountant letter? Balance sheet? Or something else

My understanding of this is that you would have to show the actual investment into the business/s so an accountants letter would suffice along with the accounts.

Q4 lastly, with ukba do we have to submit final accounts that we have submitted to hmrc or do we have to submit management accounts?

I would submit all accounts to UKBA, final accounts as well as management accounts

Saleem

I have £50k in my bank.I need show investment money to home office for my tier1 extension but i don't know how can i show my invested money in uk.Please help me anyone ho can i show my invested money

Do you have employees?
If yes then their wages will be count as investment. Office expenses like, rent or mortgage, bills, fuel expenses, office furniture. These all are count as investment.
Well 20k to 30k can be invested only through employees wages if you. Have 2 employee for 2 years.
Hope it will help.

vmai wrote:

AANA wrote:Hi 10020132

Please note this is my understanding and how i have interpreted the Home Office guidance.

Q1. Will it have an impact if my business did make loss in first 2 years and eventually i closed it down. And started a new business in third year?

No, it does not matter if the business made a profit or loss, also it does not matter if you closed the business and opened a new business.

Q2 We were a team of two members who applied for visa together. Now do we both need to be partner in all the businesses thAt we started? Or can we be self employed sole trader for two different businesses and operating them independantly? As in do I need to show access to both businesses? And vice versa

If you are operating the business's separately then you will have to show a £50,000 investment from each team member, it would be easier to add each other to the relevant business's and bank accounts.

Q3 for proof of investment, ltd companies can show director loan agreement etc. But we are operating as sole trader, what proof can we submit? Accountant letter? Balance sheet? Or something else

My understanding of this is that you would have to show the actual investment into the business/s so an accountants letter would suffice along with the accounts.

Q4 lastly, with ukba do we have to submit final accounts that we have submitted to hmrc or do we have to submit management accounts?

I would submit all accounts to UKBA, final accounts as well as management accounts

Saleem

I have £50k in my bank.I need show investment money to home office for my tier1 extension but i don't know how can i show my invested money in uk.Please help me anyone ho can i show my invested money