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whiteroses wrote:Thank you for your reply.
I understand that; however, what I don't get is why money deposited in the account is acceptable as investment if it is a Director's loan, but not if it is deposited as share capital. Why do we have to spend the share capital funds to show investment, but don't have to meet this requirement for a Director's loan at the time of extension?
MTZ510 wrote:Same applies for Share capital too but they have further clarified the directors loan by mentioning over here because share capital cannot be withdrawn unless you go into liquidation or winding up where as Directors loan can be withdrawn when ever required. I believe they have mentioned that a subordinated director's loan which cannot be withdrawn for specific time can stay in business bank account and will be accepted as money invested.
It my interpretation as in accounting practices subordinated loan is considered as equity.
whiteroses wrote:Thank you for your reply.
I understand that; however, what I don't get is why money deposited in the account is acceptable as investment if it is a Director's loan, but not if it is deposited as share capital. Why do we have to spend the share capital funds to show investment, but don't have to meet this requirement for a Director's loan at the time of extension?
rehan01 wrote:HI MTZ510,
just a quick question ..... I have got Tier 1 visa after a long battle .... regarding investment I need bit of help as since I got visa which was (april 2014) I have transferred all the funds into business account and my business account balance is £50K plus at the moment and I am going to invest into business and will use all the funds from business account as needed .... eg (office deposit, furniture, equipment's etc) my question is I didn't do any directors loan agreement or anything I just simply transferred funds from personal account into business and will invest into business directly from business account ..... is that the right way of doing it ? or do I need to invest in form of director's loan or shares?
please advice, you help will be highly appreciated as I am not a account person and don't have much knowledge about this .... I been to one accountant and he is ACCA certified and I had discuss this with him and he said if funds in your personal account just transfer into business account and start investing from there.
regards
regards
MTZ510 wrote:Same applies for Share capital too but they have further clarified the directors loan by mentioning over here because share capital cannot be withdrawn unless you go into liquidation or winding up where as Directors loan can be withdrawn when ever required. I believe they have mentioned that a subordinated director's loan which cannot be withdrawn for specific time can stay in business bank account and will be accepted as money invested.
It my interpretation as in accounting practices subordinated loan is considered as equity.
whiteroses wrote:Thank you for your reply.
I understand that; however, what I don't get is why money deposited in the account is acceptable as investment if it is a Director's loan, but not if it is deposited as share capital. Why do we have to spend the share capital funds to show investment, but don't have to meet this requirement for a Director's loan at the time of extension?
rehan01 wrote:HI MTZ510,
just a quick question ..... I have got Tier 1 visa after a long battle .... regarding investment I need bit of help as since I got visa which was (april 2014) I have transferred all the funds into business account and my business account balance is £50K plus at the moment and I am going to invest into business and will use all the funds from business account as needed .... eg (office deposit, furniture, equipment's etc) my question is I didn't do any directors loan agreement or anything I just simply transferred funds from personal account into business and will invest into business directly from business account ..... is that the right way of doing it ? or do I need to invest in form of director's loan or shares?
please advice, you help will be highly appreciated as I am not a account person and don't have much knowledge about this .... I been to one accountant and he is ACCA certified and I had discuss this with him and he said if funds in your personal account just transfer into business account and start investing from there.
regards
regards
MTZ510 wrote:Same applies for Share capital too but they have further clarified the directors loan by mentioning over here because share capital cannot be withdrawn unless you go into liquidation or winding up where as Directors loan can be withdrawn when ever required. I believe they have mentioned that a subordinated director's loan which cannot be withdrawn for specific time can stay in business bank account and will be accepted as money invested.
It my interpretation as in accounting practices subordinated loan is considered as equity.
whiteroses wrote:Thank you for your reply.
I understand that; however, what I don't get is why money deposited in the account is acceptable as investment if it is a Director's loan, but not if it is deposited as share capital. Why do we have to spend the share capital funds to show investment, but don't have to meet this requirement for a Director's loan at the time of extension?
Hope this will help. Go to page 47 of the latest guidance:Sound wrote:Hello
Can some one please send me a link on guidance to investment please?
I am not a account person but want to understand about the policy guidance so that there is no issue during the extension!
Please do reply
.........................................................................MTZ510 wrote:Same applies for Share capital too but they have further clarified the directors loan by mentioning over here because share capital cannot be withdrawn unless you go into liquidation or winding up where as Directors loan can be withdrawn when ever required. I believe they have mentioned that a subordinated director's loan which cannot be withdrawn for specific time can stay in business bank account and will be accepted as money invested.
It my interpretation as in accounting practices subordinated loan is considered as equity.
whiteroses wrote:Thank you for your reply.
I understand that; however, what I don't get is why money deposited in the account is acceptable as investment if it is a Director's loan, but not if it is deposited as share capital. Why do we have to spend the share capital funds to show investment, but don't have to meet this requirement for a Director's loan at the time of extension?
luqmanzaheer wrote: Dear brother can any body assist me my visa extension is due and i want to do investment as director loan. but my confusion is how shall i show this unsecured and subordinated director loan in annual account whether the director loan will be shown in liability side or where
luqmanzaheer wrote:i am running MONEY REMITTANCE COMPANY AND I HAVE TRANSFERRED 50000 POUND IN MY COMPANY ACCOUNT FROM PERSONAL ACCOUNT AND I WANT TO SHOW THIS AS DIRECTOR LOAN AND MY EXTENSION IS DUE IN MARCH 2015. I AM VERY CONFUSE REGARDING LIKE I TRANSFERRED FUNDS FROM PERSONAL TO COMPANY ACCOUNT IS THIS WAY IS RIGHT, WHAT YOU SAY WHAT I NEED TO DO
hi friends i am very confuse my accountant says director loan only shows in liability section in annual account not equity please help me out is he right ?MTZ510 wrote:Unsecured and Subordinated Directors loan will appear on Equity & Liability side of balance sheet and is considered as part of Equity.
My advice , hire the services of an accountant because you have to submit a letter from your accountant along with your un audited accounts for extension application.
If you don't mind sharing when is your extension due and what sort of business you are doing?
luqmanzaheer wrote: Dear brother can any body assist me my visa extension is due and i want to do investment as director loan. but my confusion is how shall i show this unsecured and subordinated director loan in annual account whether the director loan will be shown in liability side or where
I am not sure why there are two versions of the guidance, but if someone has a contact email for the Entrepreneur Visa team, that please let me know. I will email them to confirm whether the entire loan has to be spent or not."The money must be used in the business to encourage growth or expansion, to improve
services or products and to make sure the business is profitable. Director’s loans however
are permitted to remain in a bank account, provided the loan is not called in."
luqmanzaheer wrote:i am running MONEY REMITTANCE COMPANY AND I HAVE TRANSFERRED 50000 POUND IN MY COMPANY ACCOUNT FROM PERSONAL ACCOUNT AND I WANT TO SHOW THIS AS DIRECTOR LOAN AND MY EXTENSION IS DUE IN MARCH 2015. I AM VERY CONFUSE REGARDING LIKE I TRANSFERRED FUNDS FROM PERSONAL TO COMPANY ACCOUNT IS THIS WAY IS RIGHT, WHAT YOU SAY WHAT I NEED TO DO