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Using Dividend as Director's Loan

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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kaps84
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Joined: Tue Mar 03, 2015 12:12 pm

Using Dividend as Director's Loan

Post by kaps84 » Tue Jul 26, 2016 3:42 pm

Hi All,

Just wanted to know if I can use dividend from the company as Director's loan?

Background: My IT business is self earning from Day 1. I take salary from the company. Now I am planning to take Dividend from the company as a director and would like to invest it back into the company as unsecured Director's loan.

I believe this should be allowed. However, any second thoughts please?


Regards,
Kaps
-- Kaps84

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zimba
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Re: Using Dividend as Director's Loan

Post by zimba » Tue Jul 26, 2016 4:27 pm

You are expected to invest the money you originally showed in your initial application in your business. Losing access to that money is against the rules. If you have lost access to your original money and now you have to simply rely on your business profits, then you are breaking the immigration rules.

If you still have access to the money, then you can invest it without any issues as there will be no difference between the money you held and dividends earned.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

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