Tier 1 Entrepreneur Visa(200K) Extension Refusal Appeal

Dear members,

I recently applied for an extension of my 200k Tier 1 entrepreneur visa, and have received a letter which says my application was refused, as I was awarded 0 points for two attributes.

Attribute 1. Required investment made in UK businesses

You have claimed points for funds which you have invested into a UK business. Paragraphs 46-SD(a) to 46-SD(e) of Appendix A of the Immigration Rules listed the
evidence that must be provided to evidence the money that have been invested into a
UK business.

As evidence of your investment you have submitted:

Accountants letter
provided by ACCA certified accountant verifying that
- I have invested £200k in X ltd
- Company accounts were provided for year ends 30 april 2014 and 30 april 2015
- All employees have been paid in accordance to the Minimum Wage regulation through a company payroll and have worked more than 30 hours per week

Unaudited accounts
- year ends 30 April 2014 & year ends 30 April 2015 accounts were submitted
they are unaudited as I was told by the company is not required to do so.
- The accounts ended 30 April 2014 is abbreviated, the following year one is in full.

Shares certificate
- Confirming me holding 100% of the shares in the company

Bank statements
- Monthly statements covering from 18th April 2013 to 8th February 2016, £200K paid into company by 23rd April 2013

HM Revenue and Customs Letters
- Showing all tax returns have been received

Home Office response:
This evidence is not sufficient because the audited accounts that you have provided do not show the funds which you are claiming to have invested.
As a result you have demonstrated that you have invested no money into one or more UK businesses.

Attribute 2. Creation of jobs in the UK

You have claimed points on the basis that you have created the equivalent of two new full-time paid jobs for people settled in the UK and that these jobs have each existed for
at least 12 months.

As evidence of this, you have supplied:
Passport copies
Biometric Residence Permit copy
Driving Licence copy
- of myself, my current employee and all my ex-employees

Wage slips
- copies of each month payslip for all my employees

Payment summaries
- confirming the salaries of myself and my current employee

P11’s
- P11 deduction cards (PAYE details) provided by accountant showing all PAYE records
- P11 deduction cards (PAYE details) provided by accountant showing all NIC

P45’s
P46’s
P60’s
-of myself and my ex-employees

Home Office response:
Paragraph 46‐SD(h) of Appendix A of the Immigration Rules lists the specified that is required to demonstrate the creation of jobs.

As specified at paragraph 46‐SD(11)(i) you must provide the appropriate evidence to show you are reporting Pay As You Earn to HM Revenue and Customs. From October 2013 you are required to show this using Real Time‐Full Payment Submission no evidence of this have been provided and therefore hours worked after October 2013 have been discounted.


I think my documents submitted do provide evidences covering the above 2 attributes, and I would like to make an appeal to the refusal decision. I have concern whether the abbreviated account for year ended 2014 was the factor for the refusal of my extension and whether it would be a disadvantage factor for my appeal as it did not reflect the actual financial activity of that year. Currently I am asking if the accountant can provide anything that can supplement or highlight the evidences of the above attributes - I would be really grateful if anybody can provide any suggestion!

Thank you in advance!

Sorry to hear the bad news.
Please explain what you mean by abbreviated accounts.
Did it not show creditors and capital invested? What all was included or not included in the accounts.
As for employment I am confused as you did submit all they asked. They have asked for the p11 or FPS as you submitted p11 this evidence should suffice.

In order to help with admin review & further actions first need to determine that (under para 245D & 245DF and 46-SD)

1 Were all specified documents provided?

2 The Specified documents were in correct format and having all the information required?

So please specify that,

a) Does your submitted annual accounts cover all the statutory section?

b) How the relevant section of accounts showed your invested funds.

c) have you submitted monthly or summary of each months reporting from RTI?

Sorry to hear that
But
I think you have forgot to mention your names at the accounts as a director loan section or other creditors.
And
Your also missed Real time full submission of your employee of entire period.
These are the most important factors for extensions
Regards
Ik

Sorry to hear this.

can you please share your timelines.

have you received your IHS refund.

1. In order to be awarded the points for investment you MUST show in your unaudited accounts that the investment is made clearly under your name. Based on what HO reported, your accounts do NOT show your name. This very explicitly mentioned in the guide as well as Appendix A of immigration rules:

The audited or unaudited accounts must show the investment in money made directly by the you, in your own name or on your behalf (and showing your name).

If you have invested by way of share capital the business accounts must show the shareholders, the amount and value of the shares (on the date of purchase) in your name as it appears on your application. If the value of your share capital is not shown in the accounts, then a copy of the company’s register of members must be provided.

2. According to the rules You must provide evidence to show you are reporting Pay As You Earn (PAYE) income tax appropriately to HMRC. For this you need to submit FPS reports from your accountant which you failed to submit with your application.

Can I ask when you sent in your application and when you refused the decision?

I'm sorry to hear about your refusal. Good luck with the review.

Thank you for your posts guys.

[quote="zimba88"]1. In order to be awarded the points for investment you MUST show in your unaudited accounts that the investment is made clearly under your name. Based on what HO reported, your accounts do NOT show your name. This very explicitly mentioned in the guide as well as Appendix A of immigration rules:

Actually in the unaudited account it does show my name as the director of the company, however as the accountant provided me with an abbreviated accounts for the first year, it only shows £100 for the capitals, assets and shareholder's funds respectively - I was quite confused by this and now assume this might be the problem? Although at the same time it does shows on the company bank statements that 200K were invested in initially and the accountant has also provided a letter to confirm this - will these still be considered as valid evidence?

In case these are still insufficient to overturn the decision, I might look at the possibility of applying again with better documents - Is there still a way I can prove that 200K has been invested in under my name?

with regards to the FPS, I still can get those records from the accountant, but my guess was I can't use them in the admin review?

Thank you so much again

Actually in the unaudited account it does show my name as the director of the company, however as the accountant provided me with an abbreviated accounts for the first year, it only shows £100 for the capitals, assets and shareholder's funds respectively - I was quite confused by this and now assume this might be the problem? Although at the same time it does shows on the company bank statements that 200K were invested in initially and the accountant has also provided a letter to confirm this - will these still be considered as valid evidence?

No it is not acceptable. The accounts should show the shares under your name (as anyone can own shares in a company), the number of shares allocated and the value of each share. You being a director or simply showing bank account transfer of funds is not evidence of investment. Your accountant must have put these information in the notes of your accounts. This is VERY CLEAR in the guide but you failed to follow them.

In case these are still insufficient to overturn the decision, I might look at the possibility of applying again with better documents - Is there still a way I can prove that 200K has been invested in under my name?

Yes. Produce the accounts showing 200K worth of shares allocated under your name. Your accountant should be able to write these under the notes section of your accounts.
-Number of share allocated
-You name as the shareholder
-Value of each share

with regards to the FPS, I still can get those records from the accountant, but my guess was I can't use them in the admin review?

You cannot submit new evidence for AR. Get these sorted and apply again

cappachino wrote:Sorry to hear the bad news.
Please explain what you mean by abbreviated accounts.
Did it not show creditors and capital invested? What all was included or not included in the accounts.
As for employment I am confused as you did submit all they asked. They have asked for the p11 or FPS as you submitted p11 this evidence should suffice.

Thank you for you post.
I think the abbreviated accounts I got from the accountant was meant for company house and didn't not reflect the real capital of the company - in fact they were all simply listed as £100 respectively.. it includes current assets, capital and reserves and shareholder's funds - I have got from other members above what it should contains but any suggestion what else it should have?

As to what you mentioned regarding P11, that was what I thought originally, but now it seems FPS records are essential to gain the points there..

xmk123 wrote:

cappachino wrote:Sorry to hear the bad news.
Please explain what you mean by abbreviated accounts.
Did it not show creditors and capital invested? What all was included or not included in the accounts.
As for employment I am confused as you did submit all they asked. They have asked for the p11 or FPS as you submitted p11 this evidence should suffice.

Thank you for you post.
I think the abbreviated accounts I got from the accountant was meant for company house and didn't not reflect the real capital of the company - in fact they were all simply listed as £100 respectively.. it includes current assets, capital and reserves and shareholder's funds - I have got from other members above what it should contains but any suggestion what else it should have?

As to what you mentioned regarding P11, that was what I thought originally, but now it seems FPS records are essential to gain the points there..

As per application table 3b1
If the shares are nit shown in the accounts then you need to submit the share certificate
Which you did
Nonthless I would suggest because you do have the necessary documents just reapply as chances of a review with same documents seems impossible.

Do your unaudited accounts show £200K as share capital?

I mean, I know that your abbreviated accounts do not show the value of the shares, but what about your unaudited accounts? Do they show the full value?

Your Accountant knows nothing about tier1 visa requirement, In tier1 extension 80% job / paper work needs to be done by accountant.

1. He didn't mention the invested amount in your name as director loan.
2. He didn't provide / you didn't submitted RTI / FPS for the whole period.

You can go for a fresh application:

1. get your accounts sorted.
2. to claim employment points, you have to submit all RTI / FPS with your signature and name on each page.

(its my personal advice according to guidence)

Legal83
An accountant has no jurisdiction on ukvi
It is the foremost responsibility of the applicant to follow rules of immigration. it is not an accountant work.
Any one has to be aware of to day to ukvi rules and guidance
Re- read guidance because ukvi looking for minor mistake to refuse cases.

@ Business2Business

I do agree with you, but in tier1 extension application, its quite complicated from accountant end, he needs to understand the guidance regarding accounts preparation, RTI and FPS. As its been explained by Zimba in details. You can't do anything in AR.

Make a fresh application and please read the guidance alongwith your accountant to get all paper work sorted. you need to sign each paper of RTI with your name, also do mention your name in accounts as director loan with your name (where you invested / transferred the money)

Again I would still say hire a professional accountant who knows tier1 extension requirements.

zimba88 wrote:

Actually in the unaudited account it does show my name as the director of the company, however as the accountant provided me with an abbreviated accounts for the first year, it only shows £100 for the capitals, assets and shareholder's funds respectively - I was quite confused by this and now assume this might be the problem? Although at the same time it does shows on the company bank statements that 200K were invested in initially and the accountant has also provided a letter to confirm this - will these still be considered as valid evidence?

No it is not acceptable. The accounts should show the shares under your name (as anyone can own shares in a company), the number of shares allocated and the value of each share. You being a director or simply showing bank account transfer of funds is not evidence of investment. Your accountant must have put these information in the notes of your accounts. This is VERY CLEAR in the guide but you failed to follow them.

In case these are still insufficient to overturn the decision, I might look at the possibility of applying again with better documents - Is there still a way I can prove that 200K has been invested in under my name?

Yes. Produce the accounts showing 200K worth of shares allocated under your name. Your accountant should be able to write these under the notes section of your accounts.
-Number of share allocated
-You name as the shareholder
-Value of each share

with regards to the FPS, I still can get those records from the accountant, but my guess was I can't use them in the admin review?

You cannot submit new evidence for AR. Get these sorted and apply again

Hello Zimba,

We have situation that accountant saying software can not list our names against shares in notes or in balance sheet against share capital, it does show in balance sheet that value of shares then on balance sheet our names as directors.

Our annual returns show number of shares, names of director and value shares, we also have share certificates.

will this be sufficient?

Thank you.

helpingperson,
Keep your queries in your own topic. Do not hijack topics to solicit response from members who have posted in topic created by others discussing something completely different.
This seems to be a habit with you. Please refrain from doing so again!

Geriatrix,

The reason I posted here because it was relevant to this thread and similar issue to what OP had.

I do not appreciate your tone and approach towards me. Just because you are Moderator, it does not mean you can bully others.

Don't you think you should be using 'Please' to appear polite and respectable person unless you are proving here you are Moderator with authority.

I take your point.

Thank you.

helpingperson,

geriatrix wrote:Please refrain from doing so again!

Did you miss noting the "Please" in the last sentence!! Or did you want it in all the sentences?
Asking a member to follow the norm is not bullying, it is moderating.

No offence meant, none taken.

Apologies to OP for using his topic for moderation. I'll remove the off-topic posts soon.

Legal83 wrote:@ Business2Business

I do agree with you, but in tier1 extension application, its quite complicated from accountant end, he needs to understand the guidance regarding accounts preparation, RTI and FPS. As its been explained by Zimba in details. You can't do anything in AR.

Make a fresh application and please read the guidance alongwith your accountant to get all paper work sorted. you need to sign each paper of RTI with your name, also do mention your name in accounts as director loan with your name (where you invested / transferred the money)

Again I would still say hire a professional accountant who knows tier1 extension requirements.

[quote="zimba88]

Yes. Produce the accounts showing 200K worth of shares allocated under your name. Your accountant should be able to write these under the notes section of your accounts.
-Number of share allocated
-You name as the shareholder
-Value of each share[/quote]


Thank you for your comment and suggestions.

Yes the accountant provided most of the documents for the application and It would have been much helpful if the they had more experiences on dealing with Visas.

And it seems a new application to be an option more likely to be successful.

If the 200k was invested as capital share, apart from accounts showing below

my name as shareholder
number of share allocated
value of each share

+
Bank statements
Letter from the accountant

any other documents that is needed to be awarded points for this section? And I guess an director loan is not needed as it is not relevant?

Thank you all again.

Accountants do not know anything about visa requirements, why would they ??
You should make sure that your documents are strictly prepared according to the requirement in the guide/rules.

You should be mentioned as the owner of shares in the accounts. If you are, then the value can be shown in the share certificates and register of members.
If your name is not mentioned anywhere as the owner of shares, them share certificates and register of members cannot be used.

zimba88 wrote:Accountants do not know anything about visa requirements, why would they ??
You should make sure that your documents are strictly prepared according to the requirement in the guide/rules.

Yes I understand they have no obligation whatoever to know anything about visa requirements. Although I am a bit stuck here - Are P11s and payment summaries the same as RTI FPS reports? I requested FPS reports from my accountant and he doesn't know what that is and I was sent FPS receipts by HMRC and payment summaries from the accountant's payroll system.

If P11s/payment summaries equals FPS reports, also what confuses me is that in my original application I did include all P11s from the previous years..