TIER1 Extension- Urgent Help needed

Hi everyone,

My extension is due on July 2017 for 50K route. I'm running a website business and giving services to one major uk company. Unfortunately, this is my only main client since day one. I have been invoicing this company and getting paid the service charge into my business account. Meanwhile, I have been spending on travel (as sometimes I have to travel to get things done) and few computer equipment from my business account. Also I have been transferring £670 into my personal account as director's income every month. Apart from this I haven't spent on anything.

My question is how can I show my investment into the business in this scenario?

Please shed some light on this issues.

Thanks

pichas wrote:Hi everyone,

My extension is due on July 2017 for 50K route. I'm running a website business and giving services to one major uk company. Unfortunately, this is my only main client since day one. I have been invoicing this company and getting paid the service charge into my business account. Meanwhile, I have been spending on travel (as sometimes I have to travel to get things done) and few computer equipment from my business account. Also I have been transferring £670 into my personal account as director's income every month. Apart from this I haven't spent on anything.

My question is how can I show my investment into the business in this scenario?

Please shed some light on this issues.

Thanks

If you transferred 50k cash loan to your business, then you need to show:

1. Bank statements showing that 50K transferred from your account to your business
2. Your company accounts showing your name as the creditor of a 50k loan to the company (talk to your accountant)
3. A loan agreement between you and your company in which the 50k loan is unsecured and subordinated in favour of 3rd party creditors (read the guide)

If you invested in the form of share capital:

1. Your company accounts showing your name as shareholder who bought 50k worth of company shares.
2. If your name does not show up in the accounts, you need to provide share certificates issued under you name, showing the number of shares bought and how much each share was paid for. so (no. of shares x share value) must be 50k+ for award of the points.

Hi Zimba88,

Thanks for the quick reply.

I didn't transfer any money from my personal to business account yet. I have about 25K into my business account which is being accumulated as service charge since 2013. I know that 25K is counted as revenue. How do you suggest that I can show investment now?

Pls kindly suggest.

pichas wrote:Hi Zimba88,

Thanks for the quick reply.

I didn't transfer any money from my personal to business account yet. I have about 25K into my business account which is being accumulated as service charge since 2013. I know that 25K is counted as revenue. How do you suggest that I can show investment now?

Pls kindly suggest.

The income of your business does not count. Income cannot be used for investment because you showed initially that you had access to 50k and based on that your visa was granted. To be eligible for extension, that money has to be invested into the business, either as cash in the form of Director's loan or shares.

Thanks Zimba88,

Yes it makes sense. Now I have to speak to my accountant on how to convert that revenue into investment. Anyways, thanks for the replies, much appreciated.

pichas wrote:Thanks Zimba88,

Yes it makes sense. Now I have to speak to my accountant on how to convert that revenue into investment. Anyways, thanks for the replies, much appreciated.

If you do not have access to the money you claimed to have during your initial application and the money never been invested, you are in breach of the conditions of your stay. If HO finds out that money invested came from your profits rather than what you claimed in your initial application, you could be easily refused extension.

Thanks zimba88 again,

You totally make sense. I have about 25K in my personal account and 25K in business account. Could you pls kindly suggest what are my options? I'm really in confusion on what to do. My extension is due by July 2017. By the time of my extension, it will be 9 months short for 10 years period. So I just need 9 months extra visa to apply for 10 years residency.

Pls kindly suggest any options and thanks as always.

pichas wrote:Thanks zimba88 again,

You totally make sense. I have about 25K in my personal account and 25K in business account. Could you pls kindly suggest what are my options? I'm really in confusion on what to do. My extension is due by July 2017. By the time of my extension, it will be 9 months short for 10 years period. So I just need 9 months extra visa to apply for 10 years residency.

Pls kindly suggest any options and thanks as always.

Make sure all your 50K is invested and it shows in your accounts. If you want to pay yourself salary, pay from the the profits only.

Thanks Zimba88 for your kind suggestions.