Tier 1 Entrepreneur Extension in March 2016

shaf2008 · Post by **shaf2008** » Fri Dec 18, 2015 5:14 pm

HI All,

I am on a £50,000 route and my visa id due for extension in April 2016. I have a business based in London for the last three and half years. We specialize in importing building materials for large scheme residential developments. I have two full time employees. I submit VAT and PAYE every quarter. and pay appropriate taxes. Have three years accounts , the last one is not filed. Can anyone input some ideas on how to get everything in order to apply for my extension.I have one dependent

samaygrg · Post by **samaygrg** » Sat Dec 26, 2015 11:32 am

Are you self employed or company director?

shaf2008 · Post by **shaf2008** » Tue Dec 29, 2015 12:01 pm

Company Director

samaygrg · Post by **samaygrg** » Sun Jan 10, 2016 6:16 pm

Hi
I think you should start preparing your things up in an order from now as asked in the latest guidance, for me you look alright.
You will find all in the guidance, still, please have a look on this attached successful thread of extension, which might help you a lot.

http://www.immigrationboards.com/uk-tie ... 98968.html

Please share your updates to the forum.

Cheers

shaf2008 wrote:HI All,

I am on a £50,000 route and my visa id due for extension in April 2016. I have a business based in London for the last three and half years. We specialize in importing building materials for large scheme residential developments. I have two full time employees. I submit VAT and PAYE every quarter. and pay appropriate taxes. Have three years accounts , the last one is not filed. Can anyone input some ideas on how to get everything in order to apply for my extension.I have one dependent

shaf2008 · Post by **shaf2008** » Thu Jan 14, 2016 8:53 am

Thanks Samaygrg,

I met my solicitor last week, she came to my office and collected all the document . i am waiting for her comments to get the rest of the paper works ready.

She mentioned that all my expenses from business are considered as an investment. But few of my friends are saying that the business stocks are not considered as investment. Any Comments.

shanky · Post by **shanky** » Thu Jan 14, 2016 8:06 pm

shaf2008 wrote:Thanks Samaygrg,

I met my solicitor last week, she came to my office and collected all the document . i am waiting for her comments to get the rest of the paper works ready.

She mentioned that all my expenses from business are considered as an investment. But few of my friends are saying that the business stocks are not considered as investment. Any Comments.

I see on the forum lot of people have this confusion. Business investment can be used for anything related to business expenses except paying yourself as a director (in simple words you cannot take salary from business- will not be considered as investment) . So your friends are wrong. ~Let me make it easier for you to understand Few Examples :-

1 -Lets start with - Say you are working hard in your business you are tired you need a Spammy Spammer your business pays for it . It will be business expense.
2- You have client meeting you take them for lunch .It will be business expense
3- You are going for client/supplier meeting . Your car needs fuel or you take taxi or you take train .All charges can be claimed as business expense.
4- Cleaner in your office. It will be business expense
5- Business Stock .It will be business expense
6- Business staff(employees) . It will be business expense
7- Office Rent. It will be business expense
8- Business taxes to HMRC or other govt departments .It will be business expense
9-Professional fees lawyers, accountants - It will be business expense
10- You travel out off country for business - Plain tickets ,Visa fees , Transportation ,Hotel Etc whatever you need.It will be business expense

NOTE :- only legal stuff can be business expense. Example you cant bribe people and claim it as business expense.

You should not be worried about UKBA & business expenses. You should be worried about HMRC & Business expenses. UKBA dosen't have the power or knowledge to go in your expenses in details where as HMRC has all powers. You are the owner/ director of your business its your decision how you spend your money. No conditions on that what so ever except as i mention you cant take personal salary or buy property(about property check not sure)

Hope this helps . Good Luck

shaf2008 · Post by **shaf2008** » Mon Jan 18, 2016 2:46 pm

Thanks Shanky,

You are absolutely right. My solicitor called me last week and said that there is nothing to be worried about my application. she reviewed all the documents i provided. All seems OK. We are meeting again this week. Hopefully , i will have a more clear idea about what else is needed.

On our payslips the hours were not mentioned. But if they work out the figures then they can clearly understand that we are paying over the required amount. She told me to get something in writing from my accountant about this.

Also , she asked me to create a director loan agreement .

Regards

Shaf

shanky · Post by **shanky** » Mon Jan 18, 2016 3:51 pm

shaf2008 wrote:Thanks Shanky,

You are absolutely right. My solicitor called me last week and said that there is nothing to be worried about my application. she reviewed all the documents i provided. All seems OK. We are meeting again this week. Hopefully , i will have a more clear idea about what else is needed.

On our payslips the hours were not mentioned. But if they work out the figures then they can clearly understand that we are paying over the required amount. She told me to get something in writing from my accountant about this.

Also , she asked me to create a director loan agreement .

Regards

Shaf

Good Luck

zimba · Post by **zimba** » Tue Jan 19, 2016 10:06 am

yazztech wrote:just a quick query. is it necessary that company position should be in profit ? is that in rules as well ? my extension is in oct 2016 .

There are no such rules for your company to be in profit. Many companies in cash intensive sectors like technology do not make any profit for years as they rely on the investments.

moongesture · Post by **moongesture** » Tue Jan 19, 2016 7:56 pm

that's true. Business must be up and running but not necessarily in profit.

shaf2008 · Post by **shaf2008** » Tue Jan 26, 2016 9:35 am

HI Everyone,

My Immigration solicitor came to see me last week after reviewing all the documents i provided. She said most of the things are fine and there is no red flags to be worried. would really appreciate your feedback on the following .

1, She told me to write a profile about my roles in the business which need to be above NVQ level 4

2, Asked to get more contracts from my customers to show trade also she wanted to see invoices to my customers

3, Payslips. I have two employees on my payroll, one of them joined in July 2014 and the other one Feb 2015. On my accounts software she did not put any hours. there is only total amount payable to each every month. these wages are more than what is required. is it an immigration requirement to have the number of hours on the payslips. or they can work out the hours themselves. ? How about showing one employees 14 moth payslip and other ones 8 month. is it possible?

4, Director Loan agreement. She told me that there needs to be a directors loan agreement . can you please let me know , if this need to be dated before the money was transferred to the business. also what about the interest payment and repayment clauses. she told me to get the help of a financial solicitor to draft this .

5, she asked me for my CV .

6, Letters from accounat. confirming the roles/investments etc. can we have one letter for all ?

7 , Final accounts- can any one tell where can we include the directors loan ?

Will really appreciate, all inputs.

Regards

Shaf

aby00156 · Post by **aby00156** » Tue Jan 26, 2016 9:45 am

shaf2008 wrote:HI Everyone,

My Immigration solicitor came to see me last week after reviewing all the documents i provided. She said most of the things are fine and there is no red flags to be worried. would really appreciate your feedback on the following .

1, She told me to write a profile about my roles in the business which need to be above NVQ level 4
Not required / not necessary.

2, Asked to get more contracts from my customers to show trade also she wanted to see invoices to my customers
Not required / not necessary.

3, Payslips. I have two employees on my payroll, one of them joined in July 2014 and the other one Feb 2015. On my accounts software she did not put any hours. there is only total amount payable to each every month. these wages are more than what is required. is it an immigration requirement to have the number of hours on the payslips. or they can work out the hours themselves. ? How about showing one employees 14 moth payslip and other ones 8 month. is it possible?
Pay slips are compulsory. Pay slips should have number of working hours every month. If the pay slips do not have the number of working hours then provide the contract between the company and employee which shows the number of working hours and mention this in the covering letter along with your application.

4, Director Loan agreement. She told me that there needs to be a directors loan agreement . can you please let me know , if this need to be dated before the money was transferred to the business. also what about the interest payment and repayment clauses. she told me to get the help of a financial solicitor to draft this .
Director loan agreement is mandatory and should be dated before the date of first transaction. The only the clause which HO wants is that the directors loan must be unsecured and must be subordinated in favour of the third-party creditors

5, she asked me for my CV .
Not required / not necessary.

6, Letters from accounat. confirming the roles/investments etc. can we have one letter for all ?
Yes it is mandatory and yes you can have it written in one letter. Better if two seperate letters

7 , Final accounts- can any one tell where can we include the directors loan ?
Directors loan should be shown in the accounts. Ask your accountant he should have done it. If not ask him the solution for this as he the best person to answer this

Will really appreciate, all inputs.

Regards

Shaf

zimba · Post by **zimba** » Tue Jan 26, 2016 1:30 pm

Pay slips are compulsory. Pay slips should have number of working hours every month. If the pay slips do not have the number of working hours then provide the contract between the company and employee which shows the number of working hours and mention this in the covering letter along with your application.

Please point to the immigration rules/guide where you need to show the hours on payslips or show the employment contract ??? I see no such requirement.

6, Letters from accounat. confirming the roles/investments etc. can we have one letter for all ?
Yes it is mandatory and yes you can have it written in one letter. Better if two seperate letters

Accountant's letter is only required if you joined an existing business. Not required if you started a new business.

aby00156 · Post by **aby00156** » Tue Jan 26, 2016 2:33 pm

Hi Zimba,

I read it in the ECO's guidance which states that :
The applicant must provide the following documents for each worker as evidence of
employment created:

 duplicate wage documents issued to the worker covering the full period of their employment
 confirmation of the hourly rate for each employee used to claim points, including any changes in the hourly rate and the dates of the changes (this will enable you to calculate how many hours of work were created for each worker)

also it states that :
If the applicant is:
 making an initial application and wish to claim points for already having invested some or all of the required level of funds
 making an extension application
then they must provide all the appropriate specified documents needed to establish the amount they have invested:
Unaudited accounts and an accountant’s certificate of confirmation

Napoleon77 · Post by **Napoleon77** » Tue Jan 26, 2016 6:53 pm

Hi aby00156

I think a Directors Loan agreement is only compulsory IF the company was funded by a Directors Loan. If an applicants company was funded by share capital then Directors Loan agreement is not required.

You mentioned a covering letter. I do not think a covering letter is mandatory.

Thank you

samaygrg · Post by **samaygrg** » Wed Jan 27, 2016 2:52 pm

I second on the points Aby highlighted above. Cover letter is not mandatory, however, a professionally briefed out first page always adds an extra credit to understand the piles.

An accountant's letter which certifies the amount of total investment, and job creation is another key aspect to be drafted and submitted with due care.

shaf2008 · Post by **shaf2008** » Mon Feb 08, 2016 10:52 am

HI Everyone,

Its getting closer to the date of application. I Think most of the things are in place. few doubts.

1- Is it a requirement to have hourly rate on playslips.

2- Directors Loan agreement. Do i need to get any solicitor involved to draft one. ?

Its so confusing in this forum. can any one help.....

Regards

Shaf

zimba · Post by **zimba** » Mon Feb 08, 2016 11:06 am

shaf2008 wrote:HI Everyone,

Its getting closer to the date of application. I Think most of the things are in place. few doubts.

1- Is it a requirement to have hourly rate on playslips.

2- Directors Loan agreement. Do i need to get any solicitor involved to draft one. ?

Its so confusing in this forum. can any one help.....

Regards

Shaf

1. Not really, most payslips do not have hourly rates on them. HO considers a 30 hour week to be full-time employment. They want to see the money you paid covers the min number of the hours required (3120 hours) given the hourly rate you claim. You should have created the equivalent of two jobs where your employees worked min 30 hours a week for at least a year for the hourly rate you put on the form. Your salary payments must cover this.

example: you claim you employed someone for £15 an hour for a year. You should have paid them for that year at least (£15 hourly x 30 hours a week x 52 weeks) = £23,400

2. Not necessarily but it is recommended as a business solicitor will be able to draft a proper loan agreement and according to the law.

shaf2008 · Post by **shaf2008** » Mon Feb 08, 2016 11:49 am

Thanks for the response.

Is there any thing that we need to be careful about the directors loan agreement. i am trying to get some solicitors involved.

zimba · Post by **zimba** » Mon Feb 08, 2016 11:57 am

shaf2008 wrote:Thanks for the response.

Is there any thing that we need to be careful about the directors loan agreement. i am trying to get some solicitors involved.

Read the guide and prepare the loan with all the details required there. The agreement should very clearly state that the loan is an unsecured loan and it is subordinated in favour of 3rd party creditors.

shaf2008 · Post by **shaf2008** » Tue Feb 09, 2016 8:26 am

HI,

Can i use 6 or 7 years as the term of directors loan.

zimba · Post by **zimba** » Tue Feb 09, 2016 10:23 am

shaf2008 wrote:HI,

Can i use 6 or 7 years as the term of directors loan.

Yes, it is an agreement between you and your company. HO does not demand a specific period for a loan

shaf2008 · Post by **shaf2008** » Sat Feb 13, 2016 10:08 am

I met a contracts solicitor yesterday about directors loan agreement.

He said that based on English law it is not necessary to have a witness on the directors loan agreement. when i loan money to the business.

he said that i sign on both the parts.

Any suggestions.

Do i need to include any witness on directors loan agreement,

Regards

Shaf

moongesture · Post by **moongesture** » Sat Feb 13, 2016 3:00 pm

Your lawyer is absolutely right. There is no need for witness section/signature.

suvalike · Post by **suvalike** » Sat Feb 13, 2016 3:24 pm

shaf2008 wrote:I met a contracts solicitor yesterday about directors loan agreement.

He said that based on English law it is not necessary to have a witness on the directors loan agreement. when i loan money to the business.

he said that i sign on both the parts.

Any suggestions.

Do i need to include any witness on directors loan agreement,

Regards

Shaf

But you can put anyone...Any of your Friend..

You just need to put his name ,Address and then his signature...Thats all...

Its not required but will be plus point to have a witness.

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Tier 1 Entrepreneur Extension in March 2016

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