HO refused my tier 1 app without any valid reason

ali31 wrote:Zimba here is my case info.

My tier 1 ext is refused on 12th August for no valid reason. I am on £50K route.

Refusal reasons:

1. Did not invest £50K in my business
2. Did not create two full time equivalent jobs

My initial application was bit tricky. I was granted visa on the basis of £34K already spent on my business. In my extension I only had to show £16K investment. HO approved my initial T1 visa application without interview/questions asked.

In my extension application I sent following documents:

1. Director loan certificate (£15K) and prove of bank transfer.
2. Accountant letter. It covered I created two full equivalent time jobs and invested more than £50K in my business.
3. P45, P11, RTI, Wage slips and employees passports that showed I have created 3204 hours job
4. Unaudited accounts from 2012 to 2016
6. Company certificate
7. Bank statement

Due to time constraints I can't type exact text refusal reasons but I will give you some highlights.

Refusal reason 1.

I have not invested £50K in my business.

You have already demonstrated that you have invested £34K into your business. Paragraph 46 SD (a) (iii) of the immigration law rules states that you must provide the appropriate evidence you have invested the funds into your business by way of a director loan.

As a evidence of your investment you have supplied following documents:

a. A cover letter providing a break down of your investment
b. Letter from accountant
c. Director loan agreement from XXX dated XXX confirming £15K directors loan.
d. bank statement

The evidence you have supplied shows that you invested in the UK has a value of less than £50K which is unacceptable.

This is because the accounts you have produced do not show the £15K directors loan made in your name.

You can see that my above evidences I provided all documents and they confirmed it but still they didn't give me the points.

Second refusal reason Creation of job

I hired 12 employees (I didn't want to!) but 5 employees left for personal reasons.

Like above HO acknowledged all employee names, passports, wage slips, RTI, etc. They calculated 2700 hours instead of 3204. Does not explain any reason how they calculated these hours.

I made an AR and waiting for the decision.

This is because the accounts you have produced do not show the £15K directors loan made in your name.

zimba88 wrote:

This is because the accounts you have produced do not show the £15K directors loan made in your name.

Based on the above, the caseworker obviously refused your investment because your accounts did not show the full investment under your name. does not seem to be related to DL agreements. What exactly did you have in your accounts ??

Please also share how you calculated the total working hours for your 12 employees.

@babaty2k02 I understand the requirement is to show £50K DLA but in my case I have already shown £34K and it's approved by HO in my initial application. My accountant has shown all investment and detailed breakdown and I also included all evidence.

seasky wrote:1. 5/12 employees leaving for "personal" reasons? You obviously are not a very good entrepreneur. Part of your job is to attract and retain the right people. Businesses fail or succeed exactly on the talent they hire (or mis-hire). Even when you consider 5 left so you rotated 7 employees that 'didn't leave' over two jobs (over 3 years?)

2. I hope you made a typo but you do realise 34+15<50?

3. i tend to think as mentioned above that you may have calculated over 30hrs per week and any hours over 30 are disregarded. With 12 employees its hard for HO to calculate...

You are not exactly a 'star' t1-e (you didn't exactly bring in any jobs stability, let me guess you paid near min wage?) so don't expect any discretion

ali31 wrote:I want to add more. None of my employee has worked more than 120 hours a month.

babaty2k02 wrote:

ali31 wrote:I want to add more. None of my employee has worked more than 120 hours a month.

Hmmm, I'm just thinkig the HO might be right in the calculation of the number of hours. You need to try and look into your payslips per employee and individually count them month by month to get the total FULL TIME HOURS each employee did. Note that if an employee did 40 hours per week, which equates to 160 hrs in a month, this is calculated as 1 full time month (same as someone with employee with 30hrs per with with 120 hours a month).

ali31 wrote:

babaty2k02 wrote:

ali31 wrote:I want to add more. None of my employee has worked more than 120 hours a month.

Hmmm, I'm just thinkig the HO might be right in the calculation of the number of hours. You need to try and look into your payslips per employee and individually count them month by month to get the total FULL TIME HOURS each employee did. Note that if an employee did 40 hours per week, which equates to 160 hrs in a month, this is calculated as 1 full time month (same as someone with employee with 30hrs per with with 120 hours a month).

Thanks, I will definitely do that. But what if 5 employees did 400 hours a month? Assuming each employee did 80 hours a month. Will they only count 2 full time equivalent months?

I have shown £49K and £1K was already deposit in my business bank account in 2013. Unfortunately I closed that bank in 2014 and I have no proof of that deposit. I explained that bit in cover letter and my accountant also provided evidence for that.

I have just checked wage slip and I found that in two months my employees did total 269 excess hours. Are you saying that HO will disregard those hours because each employee can only work 120 hours a month? Even if I deduct 3204-269 it becomes 2935 hours not 2700 hours.

zimba88 wrote:

I have shown £49K and £1K was already deposit in my business bank account in 2013. Unfortunately I closed that bank in 2014 and I have no proof of that deposit. I explained that bit in cover letter and my accountant also provided evidence for that.

What evidence did you show ?? An accountant letter is not an acceptable evidence. You need to provide the evidence they ask you to provide based on the rules. Alternative evidence is not acceptable.
You need to show that your transferred min 50K to your business, supporting it with bank statements as evidence.

I have just checked wage slip and I found that in two months my employees did total 269 excess hours. Are you saying that HO will disregard those hours because each employee can only work 120 hours a month? Even if I deduct 3204-269 it becomes 2935 hours not 2700 hours.

1. HO will calculate the hours worked on a weekly basis not monthly, so you need 52 weeks of 30 hours work for each position
2. The hours worked are the total hours in a position/job (you get that by adding hours each employee worked in that position/job)
3. Each position needs to have 30 hours a week to be accepted as full time, extra hours worked are ignored !!!

noajthan wrote:It would be prudent to get up to speed on the rules and requirements for such a visa before embarking on the activity rather than playing catch up on a just in time-basis.

zimba88 wrote:Yes you can but you will be an overstayer.

ali31 wrote: Zimba, if I add missing hours in fresh application will HO consider this?

ali31 wrote:Hello all

... HO said that I have not provided bank statement that provide evidence of director loan and I also had some employees hours issue.

...