T1 Ent Visa extension approved with 2 traffic offence

[Momi]

Hi Momi

Be careful mate prepare your application to your best. I know 4 Cases where visa extension was cancelled under 50K route. All 4 of them were given 28 days to leave the country where passport remained with Home office and was given to them on airport. Admin review was rejected as well. Though 3 of them managed to come back under 200 K investment route, they applied from there home countries. All 4 of them were running a genuine businesses. I know them well because I helped 2 of them manage their business while they were not in the country. Plan was to sell their business as whole or to sell all their business assets individually but then they decided to give another try with new visas application and Home office decided to give them visa again. . They all used the solicitors as they all were super busy running thr businesses and making money. Which I guess was not the best idea. That may be the reason I didnt bothered use any solicitor . I would suggest put some time into it before you apply and send everything what they asked for nothing more nothing less, everyone love to work enough for what they are paid for nothing more. So if you decided to bombard the case worker with lot of unnecessary document then chances are you will frustrate him/her. I am saying this with personal experience of a friend of mine she is the case worker in Singapore embassy and she was telling me her experience . Hope this helps in some way. Good luck[/quote]


Hi Shanky,

Congratulations!

Why were those four people's extensions rejected?

Also, did you transfer all of the £50K in one go? I didn't and wonder if this will make a difference.[/quote]
----------------------------------------

Thanks Alex87

Reason of rejections for all 4 guys :-

First one had some issues with director loans Agreement dont remember exactly what it was.
Second guy missed to sign few document which UKBA specifically asked for in Appendix A
Third guy had missing RTI and FPS for couple of months, I remember he said he only submitted 8 months RTI
Fourth guy is ban from UK for 10 years now as he showed some dodgy employees which didnt actually worked but were only on papers, UKBA manages to find this out and rejected his application in less then a week and banned him with no appeal right.

Im sorry I know this may sound bit scary but worry it not that they are not granting visas I just got mine. Be positive and if you are genuine should be much of a problem.[/quote]

I think I know the fourth person somehow. that guy did not pay the taxes of his employees and submitted the photo shopped passports of his employees. It's very easy for home office to find out. There are couple of cases where home office has reject the applications for not meeting the hours of employment. One of them had 2 employees for 1 year but they have done 3095 hours not 3120 hours. That guy got refusal as well. He is now on article 8 (human right).

[vmai]

Can i have account name or any number...we can do same like you.If you can pls send me

I use KPMG , they are bit expensive but super professional, they are one of the biggest multinational accounting firms out thr. But I guess you dont need accounting firm of that level for visa purpose just take any random registered accountant you should be fine, as its only very basic information needed for Visa. I only use KPMG because my clients are CEO of well know multinational companies and most of these multinational companies have KPMG as thr accounting firm so it makes life bit easier for us as same company handles accounts for my business, customer and most of my suppliers. Unless your business don't need that level of accounting don't use KPMG .

Hope this helps

Thanks for your reply

[solomondid]

Congrats Shanky,

Very informative, thanks for sharing your success.

I interpret the following from your response, please if you could confirm its correct;

1) Employee salaries, except directors has until now been accepted as an investment.

2) director loan agreement can just be one agreement for all small investments you make within 3 years, and monies invested in small bank transfers every month as and when necessary is ok and dont need new agreement for each transfer.

3) losses incurred play any role in decision making?

Thanks and regards,

Solomon

[samaygrg]

Congratulations Shanky. You are being very helpful.

[Tier1newbie]

I think a lot of people here are getting confused with point one.

Investment here means the money that you put into the company, which is a home office requirement. 50K or 200K, depending on the type of route you have applied for should be transferred to the company from your personal account or on your behalf. This money should be in the form of loan against unsecured creditors or against share capital in the company. No money transferred to the previous owner or a franchise will be classified as an investment because you are not actually utilising the funds in your company.

Employee salary is a business expense just like rent, rates, insurance, electric and gas bills etc. which is a valid expense and you do not need to worry about it being in your books. However you cannot as a consultancy for example, buy a flat on mortgage under the company's name to rent out and use that as an expense it will not be classified as a business expense for you. If you buy a business premises for your company that will be classified as a business expense for you.

It is alright if at the end of 3 years your business expenses are less than the originally invested amount or either 50K or 200K. But you should invest the full 50 or 200K into your business.

It does not matter if you make a profit or loss, it all depends on if you are a genuine entrepreneur trying to establish a business and make some money and at the same time also fulfilling all the remaining criterias laid down by the home office.

Hope it makes sense.

Congrats Shanky,

Very informative, thanks for sharing your success.

I interpret the following from your response, please if you could confirm its correct;

1) Employee salaries, except directors has until now been accepted as an investment.

2) director loan agreement can just be one agreement for all small investments you make within 3 years, and monies invested in small bank transfers every month as and when necessary is ok and dont need new agreement for each transfer.

3) losses incurred play any role in decision making?

Thanks and regards,

Solomon

[Ali272]

Hello Shanky,

Congrats on getting your extension. I am on Tier 1 Graduate Entrepreneur and plan to switch to the main category next year. I plan to invest the £50k as a share capital in one go in coming days. Do you think that's OK? What do you recommend? Share capital or Director's loan? I feel like share capital is less riskier and Home Office prefers it.

Thank you so much
Ali

[ishfaqsangra]

Thanks Shanky for all inputs.

You paid a lot to your employees being on £50k- appreciated

I have Management Consultancy and I am paying my employees £7.5/hour as one I am using for marketing, the other one as assistance for certain audits/processes

I am going to increase the rate to £9 as recently got another Contract on 17th Nov2015.

Can this be an issue ?

my personal thoughts are that it should not be as I could not afford higher rate at that time

All suggestions are appreciated

[nadeem75]

Hi shanky?
Thanks for share a important information.
Could you advise what is account's compilation report and if you forward me sample of report, would be very kind.

[nasir333]

Hi Shanky,
Congratulations brother on your success. Sorry to bother you for this. I will highy appriciate if you can advise me about following
1: Is it fine if you have your payrol and anuual tax return to companies house from different accountants. During my first year i got my annual tax return done from an accountant management ltd, they do have multiple offices across city but as i inquire to them today, they told me they are not registered with any organizing body of accountants. So this is my huge worry and i want to change my accountant now. Will it be fine? Any suggestions please? My second year annual tax return deadline is approaching in couple of weeks.

2. when i will apply for my extension i would have submitted for 2 times annual tax return to companies house as due to some delay i got it done last time near the end of my deadline but within due date and my accountant was able to file a tax for one and half year and he said he can do same for next time which means technically i would have 2 annual tax returns but covering 3 years. Will it be fine as long as it is permissible and within due date of company house?
Thanks, stay blessed

Can i have account name or any number...we can do same like you.If you can pls send me

I use KPMG , they are bit expensive but super professional, they are one of the biggest multinational accounting firms out thr. But I guess you dont need accounting firm of that level for visa purpose just take any random registered accountant you should be fine, as its only very basic information needed for Visa. I only use KPMG because my clients are CEO of well know multinational companies and most of these multinational companies have KPMG as thr accounting firm so it makes life bit easier for us as same company handles accounts for my business, customer and most of my suppliers. Unless your business don't need that level of accounting don't use KPMG .

Hope this helps

Thanks for your reply

[shanky]

I think I know the fourth person somehow. that guy did not pay the taxes of his employees and submitted the photo shopped passports of his employees. It's very easy for home office to find out. There are couple of cases where home office has reject the applications for not meeting the hours of employment. One of them had 2 employees for 1 year but they have done 3095 hours not 3120 hours. That guy got refusal as well. He is now on article 8 (human right).[/quote]



The fourth one I was telling about is back in Malaysia. They are both different

[shanky]

Congrats Shanky,

Very informative, thanks for sharing your success.

I interpret the following from your response, please if you could confirm its correct;

1) Employee salaries, except directors has until now been accepted as an investment.

2) director loan agreement can just be one agreement for all small investments you make within 3 years, and monies invested in small bank transfers every month as and when necessary is ok and dont need new agreement for each transfer.

3) losses incurred play any role in decision making?

Thanks and regards,


Hi solomondid

1- Yes
2- Yes one agreement
3- Losses dosent make a difference most of the businesses anyway can not be profitable in first 3 year unless its a dodgy business. Cant generalise depends on business sector some business can be profitable from day first. Will not be a issue if your business is loss

Solomon

[shanky]

Hello Shanky,

Congrats on getting your extension. I am on Tier 1 Graduate Entrepreneur and plan to switch to the main category next year. I plan to invest the £50k as a share capital in one go in coming days. Do you think that's OK? What do you recommend? Share capital or Director's loan? I feel like share capital is less riskier and Home Office prefers it.

Thank you so much
Ali

Hi Ali

Will suggest to concentrate on business instead on visa at this moment you still have a year. I would suggest to invest as Director loan - say for example if your business dosent do well in coming years and you decide to sell you business at-least you will be legally entitled to get your money refunded as you invested money as loan and business will be liable to payback the loan to its director. Where as Share capital wont cover much of your risk as it will only depend on the business success and its market valuation will decide the share price of each share so for example you invested 50 K for 100% share of your company so your company valuation will come out to be 50 K and say for example if your business not doing well in coming years then the company valuation will go down and you will loose money on your company shares . Investing as Share capital is only good for you if you think your business needs more then 50 K and you will have to raise extra cash from private investors or Angel investors then its advisable as share capital as they will buy shares in your company in exchange of cash. Take some professional advice on this it all depends on kind of business you are planning setting up.

Though Visa for graduate entrepreneur is much easier but you still need to proof that you are genuine entrepreneur and if you are genuinely starting out with business which is best to do as it gives you freedom to be your own boss and not to work hard fulfilling someone else dreams, you would need to understand basics of money your are investing.

[shanky]

Thanks Shanky for all inputs.

You paid a lot to your employees being on £50k- appreciated

I have Management Consultancy and I am paying my employees £7.5/hour as one I am using for marketing, the other one as assistance for certain audits/processes

I am going to increase the rate to £9 as recently got another Contract on 17th Nov2015.

Can this be an issue ?

my personal thoughts are that it should not be as I could not afford higher rate at that time

All suggestions are appreciated

I know mate I pay a lot to my employees but it all come down to GOALS we have if the GOAL is only to get visa then the employees on minimum wage should be fine but if the GOAL is to make your business successful and have a desired life style then it important to have Smart intelligent people working for you and trust me mate there is shortage of SMART people out there and if you manage to get hold of few of them then there is no other option but to pay them what they deserve. How I see it is if you pay minimum wage you will get minimum wage work ethics and if you pay what they deserve then you can demand for what you desire. Well pay will depends on business sectors. It works for me though

You mention you will increase from £7.5/hour to £9 - is not a issue but you would need to mention it on the application form separately the rate change and date. also you will need to give rate change confirmation on you company letter head pad . Hope this helps

[shanky]

Hi shanky?
Thanks for share a important information.
Could you advise what is account's compilation report and if you forward me sample of report, would be very kind.

Hi

sorry dont have it
account's compilation report is just a standard formate. Your accountant will have it . Its simply says that how the information was provided and how the accounts are made and if anything is wrong with accounts then you will be responsible not the accountant.

[Ali272]

Thank you Shanky for your reply.

My university has already confirmed I'm genuine entrepreneur. I was selected in a very competitive competition among hundreds of applicants. I was wondering what else do I need to provide?
I will be spending almost £12000 this year on my tech business and will have extensive marketing campaign in financial magazines such as money week. I don't plan to employ people for the first two years to keep costs low. Would this be alright be genuineness test? What else do I need, to prove I am really genuine? Thanks.

[shanky]

Thank you Shanky for your reply.

My university has already confirmed I'm genuine entrepreneur. I was selected in a very competitive competition among hundreds of applicants. I was wondering what else do I need to provide?
I will be spending almost £12000 this year on my tech business and will have extensive marketing campaign in financial magazines such as money week. I don't plan to employ people for the first two years to keep costs low. Would this be alright be genuineness test? What else do I need, to prove I am really genuine? Thanks.

Sound cool man good one. You should be fine since uni is backing you . also till the time you invest money and employee 2 staffs everything should be fine as per today's policies .

[ishfaqsangra]

Thanks Shanky for the valuable reply and explanation of Compilation report well done mate I hope if people ask sensible questions rather than the ones you already replied, you will continue to answer them in the light of your own experience and judgment.

Thanks again.

[Ali272]

Thank you so much Shanky for your answers, they really helped. Good luck with your business.

[Meesha]

Congratulations Shanky,
From your posts it is obvious that u deserved this success very well.
Can you please inform me a little more about the accountant letter that we are supposed to submitt as one of the proof of job creation.
When should accountant generate it? At the start of job i-e when he started generating pay slips? Will not it be too old to submit as an evidence as it will be minimum an year old. Or should accountant made it afresh when you apply for extension.

Thanks for helping us all.

[shanky]

Congratulations Shanky,
From your posts it is obvious that u deserved this success very well.
Can you please inform me a little more about the accountant letter that we are supposed to submitt as one of the proof of job creation.
When should accountant generate it? At the start of job i-e when he started generating pay slips? Will not it be too old to submit as an evidence as it will be minimum an year old. Or should accountant made it afresh when you apply for extension.

Thanks for helping us all.

Hi Meesha

Accountant letter is just a confirmation that jobs have been created and existed for 12 months so letter is suppose to be dated any date before you send the application. Hope this helps . Good luck

[fzp83]

Hello Shanky

Many thanks for sharing such useful information and guiding us all on technical issues. I'll be grateful if u can plz help me with below:

1) What employee payment records did you send? Did you send P11s or Just real time Full Payment Submissions?

2)Was the loan agreement attested by an accountant or solicitor?

I have been trying to find a reliable template for Director's loan but with no success. If possible, would u be able to email me the template u used? My email is:Email address removed by moderator
Thanks in advance for ur assistance!

Regards

[ali31]

One of them had 2 employees for 1 year but they have done 3095 hours not 3120 hours. That guy got refusal as well. He is now on article 8 (human right).

If I am not wrong total hours for two employees should be 2880 not 3120. ( (30 hours x 4) * 12 * 2)

[zimba]

One of them had 2 employees for 1 year but they have done 3095 hours not 3120 hours. That guy got refusal as well. He is now on article 8 (human right).

If I am not wrong total hours for two employees should be 2880 not 3120. ( (30 hours x 4) * 12 * 2)

Nope. It should be 52 weeks x 30 hours min X 2 employees = min 3120 hours

[sanjay1]

Hi Congratualtions , I have a doubt regarding tier1 entrepreneur visa extension , do we need to register as an employee for our limited company apart from director position?

[zimba]

Hi Congratualtions , I have a doubt regarding tier1 entrepreneur visa extension , do we need to register as an employee for our limited company apart from director position?

When you work for your company as a director, you legally are considered an employee of that company but you do not need to register anything. However If you pay yourself any salary, you need to put yourself on PAYE payroll.