Entrepreneur visa extension

I have now successfully extended my entrepreneur visa on £50k route and will clear here a number of misconceptions.

Timeline

Application sent - 15/02/16
Received - 16/02/16
Acknowledgement - 21/02/16
BRP request - 21/02/16 (Given the same day)
BRP received - 02/03/16 (decision date 29/02/16)
Passport and other documents - waiting

I have requested to expedite my case, which was approved on medical grounds. I provided my wife's doctors letters from Canada.

I am a Chartered Certified Accountant (FCCA), running an award winning practice.

Documents submitted

Application
1 year management accounts clearly showing director loan of £50k under creditors
Director Loan agreement (format below)
Proof of transfer of director loan (both business and personal statements)
Current appointment report
Employment documents (Payslips for the last 15 months - full payment submissions for the last 15 months, P46 for all the employees who started with my firm, the employees passport copies, P11'S)
Professional indemnity insurance (For genuine entrepreneur purpose)
Employers Liability insurance (For genuine entrepreneur purpose)
Invitation that I was invited as a guest speaker by Barclays Bank to discuss business growth (For genuine entrepreneur purpose)
Last 3 months business statements
Last 3 months personal statements (maintenance)
Corporation Tax letter from HMRC
Latest VAT filed with the payment

Employment

A number of people suggest here that apprentices are not employees, which is incorrect as apprentices are employees and receive national minimum wage. I had 1 apprentice, who worked for me full time. As my case is approved, which is why I believe that apprentice was accepted as an employee. I did provided a cover letter explaining the employment, which in my opinion, home office must have accepted due to my expertise in the industry.

The director loan was only transferred 2 months before the extension and stayed in the business account as my company is profitable and the money was not used.

In summary, this post should clear the misconception of apprentices being employees and the director loan, which does not have to be used by the company if not needed but yes need to be transferred, stayed in the business account and shown on the accounts.

-----

Director Loan agreement (I signed as myself and as the director and no witnesses)

THIS AGREEMENT is made on the 01 of January 2013

Between,

Lender: XYZ, Director of XYZ Limited
Borrower: XYZ Limited, 123456789
Amount of Loan: £ 50,000
Repayment Period of Loan: 60 Months after the initial 5 years
Amount payable: £ 50,000
Annual Percentage Rate: 0 %

Terms of the Loan
1. The lender shall lend or make available to the Company the sum of £ 50,000 (‘the Loan’) for a total period of 5 years. The loan, if not transferred at the date of this contract than must be transferred before 30th November 2015. The term of the loan will start immediately after the transfer.
2. The repayment period will starting at the end of the 5th year for a period of 5 years, amounting to 60 Monthly repayments.
3. In consideration of the Lender lending or making available the Loan the Company covenants and undertakes to repay the Loan to the Lender on the Repayment Date or on any earlier date on which the Loan may become repayable pursuant to this agreement.
4. The loan is unsecured and subordinated in favour of third-party creditors.
5. The lender must ensure that the Loan is available in lenders accounts on the signing date and credited to the company business account on or before 30th November 2015.
6. Notwithstanding anything else contained in this agreement the whole of the Loan or so much of it as for the time being remains outstanding and all interest accrued but unpaid shall immediately become repayable in any if the Company shall be unable to pay its debts within the meaning assigned to that expression by the Insolvency Act 1986 Section 123 or if the Company shall certify that it is unable to pay its debts as and when they shall fall due.


Signed on behalf of Company
Name: Mr. XYZ

Signed: …………………………………………………………………………………………
Position: Company Director
Dated: 01 January 2013


Lenders Full Name: Mr. XYZ

Signed: ……………………………………………………………………………………………
Dated: 01 January 2013

----

I applied for ILR on 10 years basis, 8 months before my entrepreneur visa expired (18/12/15). ILR was refused due to over 1300 days absences in 10 years. I appealed and the appeal rights exhausted on 27/01/16. I was therefore an over stayer from 28/01/16 and applied for extension on 15/02/16 i.e. within 28 days. As my extension was approved, which means that the overstaying time of under 28 days was disregarded. Also, the time between 18/12/2015 - 27/01/16 was classed as extension under section 3c.

Great news. Congratulations and thank you for sharing the details of your case.

Did you transfer the entire £50K in one transaction?

No, the director loan was transferred over 5 installment in 5 days.

dnf wrote:I have now successfully extended my entrepreneur visa on £50k route and will clear here a number of misconceptions.

Timeline

Application sent - 15/02/16
Received - 16/02/16
Acknowledgement - 21/02/16
BRP request - 21/02/16 (Given the same day)
BRP received - 02/03/16 (decision date 29/02/16)
Passport and other documents - waiting

I have requested to expedite my case, which was approved on medical grounds. I provided my wife's doctors letters from Canada.

I am a Chartered Certified Accountant (FCCA), running an award winning practice.

Documents submitted

Application
1 year management accounts clearly showing director loan of £50k under creditors
Director Loan agreement (format below)
Proof of transfer of director loan (both business and personal statements)
Current appointment report
Employment documents (Payslips for the last 15 months - full payment submissions for the last 15 months, P46 for all the employees who started with my firm, the employees passport copies, P11'S)
Professional indemnity insurance (For genuine entrepreneur purpose)
Employers Liability insurance (For genuine entrepreneur purpose)
Invitation that I was invited as a guest speaker by Barclays Bank to discuss business growth (For genuine entrepreneur purpose)
Last 3 months business statements
Last 3 months personal statements (maintenance)
Corporation Tax letter from HMRC
Latest VAT filed with the payment

Employment

A number of people suggest here that apprentices are not employees, which is incorrect as apprentices are employees and receive national minimum wage. I had 1 apprentice, who worked for me full time. As my case is approved, which is why I believe that apprentice was accepted as an employee. I did provided a cover letter explaining the employment, which in my opinion, home office must have accepted due to my expertise in the industry.

The director loan was only transferred 2 months before the extension and stayed in the business account as my company is profitable and the money was not used.

In summary, this post should clear the misconception of apprentices being employees and the director loan, which does not have to be used by the company if not needed but yes need to be transferred, stayed in the business account and shown on the accounts.

-----

Director Loan agreement (I signed as myself and as the director and no witnesses)

THIS AGREEMENT is made on the 01 of January 2013

Between,

Lender: XYZ, Director of XYZ Limited
Borrower: XYZ Limited, 123456789
Amount of Loan: £ 50,000
Repayment Period of Loan: 60 Months after the initial 5 years
Amount payable: £ 50,000
Annual Percentage Rate: 0 %

Terms of the Loan
1. The lender shall lend or make available to the Company the sum of £ 50,000 (‘the Loan’) for a total period of 5 years. The loan, if not transferred at the date of this contract than must be transferred before 30th November 2015. The term of the loan will start immediately after the transfer.
2. The repayment period will starting at the end of the 5th year for a period of 5 years, amounting to 60 Monthly repayments.
3. In consideration of the Lender lending or making available the Loan the Company covenants and undertakes to repay the Loan to the Lender on the Repayment Date or on any earlier date on which the Loan may become repayable pursuant to this agreement.
4. The loan is unsecured and subordinated in favour of third-party creditors.
5. The lender must ensure that the Loan is available in lenders accounts on the signing date and credited to the company business account on or before 30th November 2015.
6. Notwithstanding anything else contained in this agreement the whole of the Loan or so much of it as for the time being remains outstanding and all interest accrued but unpaid shall immediately become repayable in any if the Company shall be unable to pay its debts within the meaning assigned to that expression by the Insolvency Act 1986 Section 123 or if the Company shall certify that it is unable to pay its debts as and when they shall fall due.


Signed on behalf of Company
Name: Mr. XYZ

Signed: …………………………………………………………………………………………
Position: Company Director
Dated: 01 January 2013


Lenders Full Name: Mr. XYZ

Signed: ……………………………………………………………………………………………
Dated: 01 January 2013

----

I applied for ILR on 10 years basis, 8 months before my entrepreneur visa expired (18/12/15). ILR was refused due to over 1300 days absences in 10 years. I appealed and the appeal rights exhausted on 27/01/16. I was therefore an over stayer from 28/01/16 and applied for extension on 15/02/16 i.e. within 28 days. As my extension was approved, which means that the overstaying time of under 28 days was disregarded. Also, the time between 18/12/2015 - 27/01/16 was classed as extension under section 3c.

Hi Dnf,

Hearty Congratulations on your extension.... and Thanks a Ton for providing the checklist which will help lot of other members in this forum.

I have few questions regarding the documents:
Do we need to have commercial business premisses ? Did you've submiteed any thing related to business address - As I believe that it should be there in Company Registration document as registered address. Why I've asked this question is some of us registered the company in Home address. Please let me know your thoughts on that.

Thanks

No, you don't need to have commercial premises. You need to understand that Home Office is aware that a number of businesses are run from home. However, the commercial premises, could have an effect on genuine entrepreneur test. I have an office.

Many congrats and good luck for ur future & thanks for sharing things in detail:

Can you plz share sample of FPS as there alot of refusals due to this, i ve changed 3 accountants in las 2.5 years and all have given different things only one has given me RTI/FPS the rest say their software dont produce this and they ve successfully submited to HMRC,

If u can kindly share the format or sample of FPS so i can arrange this as i my extention is due in few months and i want to ve everthing ready in advance.

Thanks in advance

The one who said that their software cannot produce FPS are probably using the HMRC free software. Your best bet is to contact HMRC and tell them that you have lost the documentation and your software backup and would like the copies of all FPS

Anyway, I have used the FPS from the software I use for my clients and my own company. I have absolutely no way to provide a sample and the documents that I have, contain plenty of confidential information, which I cannot share due to date protection act which I have to abide by as an FCCA

Thanks for your reply, i am not asking youbto share any such info but if you would kindly share what shud be mentioned on FPS like if you can manually write down ot will do coz i got so many tjing from one accountant like, emplyer summary,net pay report,EPS but when i asked him to provide me FPS he said i given you everything already he said show me exactly what i am upto so he can make it manually and then put that data which he already submitted to HMRC

I don't think you can do it manually as one it will take alot of time and 2 the calculations are quite complicated for a non-accountant. Manual is bound to make mistakes but I am happy to tell you what my FPS included.

Should include the following:

Paye reference
Accounts Office reference
Name of the employee
NI Number
Address
DOB
Gender
Payment frequency
Payment date
HMRC month
Number of periods covered
Contracted Hours per week
Tax Code
Taxable pay
Pay after statutory deductions
Tax
NIC table letter
Gross Earnings for NIC
Employers NIC
Employee NIC
Year to date Taxable Pay
Year to date Tax
NIC Letters and values (Year to date)
Sender ID
Contact email address
Transaction ID
Time stamp

Hi dnf

Congrats on your extension which was rather fast.

Can you please help me with the following information-

- how did you pay for your application? Debit card? Postal order? Etc
-how long did it take for you to receive your biometrics letter after payment was collected?
-I was told they no longer send acknowledgement letter but only biometric letter, can you clarify if you received acknowledgement letter.

My application was received on 16/02/16 and I paid by bank draft but haven't received an acknowledgement or biometrics letter.

Many thanks

Hi Dnf,

Congrats for your extension.

Can you please advise if you have provided the following covering the last 3 years:

Professional indemnity insurance (For genuine entrepreneur purpose)
Employers Liability insurance (For genuine entrepreneur purpose)


Many thanks
IR

Congrats Dnf.

could you please advice me on below question.

Did you send the original p46 for your extension ? do we really need to provide p46 as they are not used anymore by hmrc.

Many thanks

Hi Tuhc

Yes, original P46 - P46 were never used by HMRC but was a requirement for an employer to fill in for an employee without P45. I have still instructed my clients to carry on and so did I for my company. It ensures that Home Office is aware of the exact start date of the employee.

Hi Irana,

I sent insurance for the last 2 years covering 15 months of the employment.

Ni Napoleon,

The fees was paid by the debit card and my timeline is above.

Hi dnf,

so you had a business without any investment for three years ? and 2 months before extension, your business had 50k injection which was not spent by the time of extension and you still got the visa ?

is it this OP being lucky or is this permissiable under the HO immigration rules ?

so, how did you business survive without any investment prior to the cash injection via DL ?

sorry if I hv misunderstood your post

If a business is profitable from day one than it can survive without the need of investment.

You are not required to spend the investment which is the misconception majority of people have hence the reason I wrote this post to clear up the misconception

Kindly re-read my original post as everything is clearly outlined.

Hi Dnf,

I went through your original post several times, but still unclear.

How much did your company spent in the three years ?

The purpose if Tier 1 Ent is for UK to attract funds and beef up the economy,. As such, I am surprised that money unspent has been taken into account ?

id there any immigration rules that allows it ? what does everyone think, one lucky case or this is the norm ?

Hi n8net,

I think dnf's post is explicit and clear enough tbh. He/she stated that the business has been profitable from day one i.e. other funds were probably injected into the business prior to getting the Initial Grant of Leave and didn't have any REASON to expend the £50k as investment.

In addition, employees were probably paid outside of the £50k investment funds too with profits from the business. Ideally, that's what a viable and profitable business would avail you. Capital of £50k+ is very well intact and unspent as must be evidenced on the balance sheet!

It was confirmed also that the £50k was moved to the business account as DL as evidence of investment. Please bear in mind that there's no rule that states you MUST expend all the investment funds (£50k/£200K) within 3yrs or at all. As long as you have evidence of a profitable and genuine business as well as evidence of the funds, readily available and at your disposal.

As for me there is no confusion here at all and HO was not confused either , extension granted already. Happy days!

Cheers,
Kunle

kunleoyewo wrote:Hi n8net,

I think dnf's post is explicit and clear enough tbh. He/she stated that the business has been profitable from day one i.e. other funds were probably injected into the business prior to getting the Initial Grant of Leave and didn't have any REASON to expend the £50k as investment.

In addition, employees were probably paid outside of the £50k investment funds too with profits from the business. Ideally, that's what a viable and profitable business would avail you. Capital of £50k+ is very well intact and unspent as must be evidenced on the balance sheet!

It was confirmed also that the £50k was moved to the business account as DL as evidence of investment. Please bear in mind that there's no rule that states you MUST expend all the investment funds (£50k/£200K) within 3yrs or at all. As long as you have evidence of a profitable and genuine business as well as evidence of the funds, readily available and at your disposal.

As for me there is no confusion here at all and HO was not confused either , extension granted already. Happy days!

Cheers,
Kunle

Kunle can you give us a timeline of when you applied for extension and when it was granted?

JohnOhn wrote:

kunleoyewo wrote:Hi n8net,

I think dnf's post is explicit and clear enough tbh. He/she stated that the business has been profitable from day one i.e. other funds were probably injected into the business prior to getting the Initial Grant of Leave and didn't have any REASON to expend the £50k as investment.

In addition, employees were probably paid outside of the £50k investment funds too with profits from the business. Ideally, that's what a viable and profitable business would avail you. Capital of £50k+ is very well intact and unspent as must be evidenced on the balance sheet!

It was confirmed also that the £50k was moved to the business account as DL as evidence of investment. Please bear in mind that there's no rule that states you MUST expend all the investment funds (£50k/£200K) within 3yrs or at all. As long as you have evidence of a profitable and genuine business as well as evidence of the funds, readily available and at your disposal.

As for me there is no confusion here at all and HO was not confused either , extension granted already. Happy days!

Cheers,
Kunle

Kunle can you give us a timeline of when you applied for extension and when it was granted?

Hi JohnOhn,

Extension granted was just a reference to dnf's extension that was granted. I just submitted my extension application last week and awaiting favourable result from HO, fingers crossed!

Cheers,
Kunle

thanks guys for clearing that up.

So, I take it from this forum that you can have all of 200k sitting in your business account and as long as you gave created two jobs for 12 months, you are ok for extensions ?

@Kunel.

did you also went to extension with full or some of the money sitting in your bank account ? also as an evidence for that should personal and business bank statement should be submitted along with DL ?

thanks

kunleoyewo wrote:

JohnOhn wrote:

kunleoyewo wrote:Hi n8net,

I think dnf's post is explicit and clear enough tbh. He/she stated that the business has been profitable from day one i.e. other funds were probably injected into the business prior to getting the Initial Grant of Leave and didn't have any REASON to expend the £50k as investment.

In addition, employees were probably paid outside of the £50k investment funds too with profits from the business. Ideally, that's what a viable and profitable business would avail you. Capital of £50k+ is very well intact and unspent as must be evidenced on the balance sheet!

It was confirmed also that the £50k was moved to the business account as DL as evidence of investment. Please bear in mind that there's no rule that states you MUST expend all the investment funds (£50k/£200K) within 3yrs or at all. As long as you have evidence of a profitable and genuine business as well as evidence of the funds, readily available and at your disposal.

As for me there is no confusion here at all and HO was not confused either , [u]extension granted already[/u]. Happy days!

Cheers,
Kunle

Kunle can you give us a timeline of when you applied for extension and when it was granted?

Hi JohnOhn,

Extension granted was just a reference to dnf's extension that was granted. I just submitted my extension application last week and awaiting favourable result from HO, fingers crossed!

Cheers,
Kunle

Hi Kunle

You also got me confused as I also thought yours had been granted

I wish you success.

Sorry for the confusion guys but I claim it and so shall it be!

Good luck to everyone waiting to apply or already applied and waiting for positive feedback.

Cheers!

Dear DNF,

Congrats and really appreciated your hard work and detailing all about your case here.
Could you be kind enough to leave me your email address or mobile number cuz I need to discuss an issue in my case as you are a practising accountant as well.

Will highly be appreciated.

Kind regards
Extension

xxxxxxxxxxxxx u can text call instead .cheers

Dear dnf
Thanks for sharing your experience and also clarifying the misconceptions i have a question here regarding directors loan agreement and also director loan as an investment my case is this as me and my business partner started the business in January 2014 and in February 2014 we applied as an entrepreneur team on the bases of 50k investment both of us are from same university and done of Masters in Banking
Our company is in profit from day one and we do the turnover of about 30k in first year out of which me and my partner took 10k each as directors wages and rest is our business running cost and we paid corporation tax on about 6k profit
in November 2015 my team member resigned from directorship and he migrate to America permanently company did fine in 2015 as well initially and we create employment one full time employee of 37.5 hours a week about 19k wages been paid to her she is on fixed salary as i introduced 10k in business in September 2015 then 10k in December 2015and January 2016 respectively that means all together 30k in 2015-2016 as my accounting period is 1st of feb 2015 to 31jan 2016 i want to know that as untill last 10k introduction of capital my team member is dirctor as well but money transferred from my personal account how should i write dirctor loan as if i write from since feb march 2014 do we both need that director loan agreement been signed
please guide me that what sort of directors loan agreement should i made and what dates should i mentioned on it and also advice me that is it good to invest in form of share capital or director loan please guide me for diector loan agreement my visa issued in 22march 2014 and expired on 18th march 2017
please let me know about director loan and also let me know that should i made separate loan agreement for each transaction or one director loan mentioning year started and ending date and also that it is unsecured and subordinate to third party creditor.
Please give me healthy suggestions i looking forward for positive reply.

Hi,

First of all congratulations. Second moving on to your misconceptions. Can you pls advice what can I do when I do have one full time employee and two part time employees.

I had two employees for last 12 months.
One Working as 30 Hours a week
Second as 25 Hours a week
And Third one as 20 hours a week,

Do I need to attach a covering letter or do need specific document proving that my two part employees are making a full time Job as together. Pls if you have some info on it and can clarify that. Thanks