Tier 1 Entrepreneur Extension Approved w/o Interview !

M. Syed wrote:

nasiaziz wrote:hi did you spend any of the 50k or just invested in the company and it was sitting in the company bank accountts??is there any requirement for spending it as well??or homeoffice only wants us to invest?

Dear friend,

I invested 50K but my business expenses were around £175K. This is because there was some business income as well.

Its a good idea to not hold the money in the bank but use it.

Many thanks,

Hello Mr sayed,

Just a quick question. If you don't mind me asking, was your business in profit in each financial accounts in last 3 year? as you now that business surely takes a bit time to recover loss and to come to a standard profit position. By the way, is it possible to talk to you in person about this ?

Hi
Those applying for extension are using home as business address or have rented office and submitting rental agreement along with visa application.

My second question is if business in profit then director can draw the salary or not.

business genius wrote:Hi
Those applying for extension are using home as business address or have rented office and submitting rental agreement along with visa application.

My second question is if business in profit then director can draw the salary or not.

1. Most businesses have service addresses that are not residential however there is no requirement to submit rental agreement to HO.
2. You obviously can pay yourself salary from your profits.

Ans1. Yes, full / partial commercial lease should be submitted.

Ans 2. Director can draw salary from company, no restriction but this will effect Director Loan Account.

Zimba is right, Just to clarify further that submitting lease will enhance credibility but not mandatory.

abdhriz wrote:Ans1. Yes, full / partial commercial lease should be submitted.

Ans 2. Director can draw salary from company, no restriction but this will effect Director Loan Account.

Also how taxed salary which is paid from profits would change the director's loan account ??? Any loan repayments will be the tax free and will not go through payroll at all.

Does director remuneration in any shape will not be disregarded from any investment made?

abdhriz wrote:Does director remuneration in any shape will not be disregarded from any investment made?

Yes but if it is paid from your profits not the money you invested, you get the investment points anyways. It will be absurd to think that you can never pay yourself any salary from your company

No I was interpreting the law with its intention. The whole idea of this investment route is to get business rotating and director remuneration as it is written in guidance will be disregarded from investment (policy guidance 19/11). It is also to prevent people to invest through one end and draw the same through high salaries from other ends.

Zimba88 is right if the director salary is from profit it will not affect the directors loan account.you can not draw salary if you are in loss.

You can pay yourself if you form as a limited company. However, if you were to put back that money to the business, then that money is not considered as an investment and this is called "directors remuneration"
Hope it helps.

Hello Guys,

I have transferred 9614 £ as a director pay in the last 1 and half years. Is it safe to do if I transfer back the same amount and cover letter provided by accountant at the time of extension to explain the director pay has been transferred back / reinvested into the business account?

Senior members, Please advise if there is any other best way going forward?

Best Regards,
IR

abdhriz wrote:No I was interpreting the law with its intention. The whole idea of this investment route is to get business rotating and director remuneration as it is written in guidance will be disregarded from investment (policy guidance 19/11). It is also to prevent people to invest through one end and draw the same through high salaries from other ends.

Let's say you invested 200k and made 50K in that year. If you draw less than 50K as remuneration, your investment fund is untouched and you are fine. If you pay yourself lets say £70k then from HO's perspective, you have invested only £180k !

If you have invested 200k and don't make any profit. You are still entitled to have wages as a directors. Any amount that you make from your salary and if you were to put back to the company. This will not be counted as an investment.

Directors are classified differently in terms of tax or employments as it is always cumulative.

If your company don't make any profit and you still draw as a salary, then your company is trading on negative. And your question whether this will affect your investment? the answer is NO.

You need to live and pay your bills and if you don't make money in your company. That's business and it's risk. This is why your directors loan is always unsecured and subordinated.

Hope it helps.

Hello guys
can you please explain me, in application form when you fill up "Table of evidence for employment created" in last column , question is " Pay statements to cover total period of employment created for each worker yes/no"
what is that?
thanks

kayani2012 wrote:Hello guys
can you please explain me, in application form when you fill up "Table of evidence for employment created" in last column , question is " Pay statements to cover total period of employment created for each worker yes/no"
what is that?
thanks

You have to confirm that you included all the employees duplicate Pay Slips for all the period that you are claiming for.

thank you zimba

Hello Zimba
please help me for one more thing.
in Table of evidence for the direct investment of funds into UK business, in one column question is "Amount of investment less the value of any accomodation" do i have to put 50,000 what i gave director loan to company?
thanks

kayani2012 wrote:Hello Zimba
please help me for one more thing.
in Table of evidence for the direct investment of funds into UK business, in one column question is "Amount of investment less the value of any accomodation" do i have to put 50,000 what i gave director loan to company?
thanks

yes

thanks you for prompt answer zimba
one more thing, i paid my employees national minimum wage, i have employee payment records which is generated by me in excel and its show that whenever national minimum wage changed in last three years , is that enough or do i have to write it down separate as well?

kayani2012 wrote:thanks you for prompt answer zimba
one more thing, i paid my employees national minimum wage, i have employee payment records which is generated by me in excel and its show that whenever national minimum wage changed in last three years , is that enough or do i have to write it down separate as well?

Well your employee payment records should be fine but when filling the form when you write the employment details, you need to enter them as a separate employment(s) periods for the each person.

zimba88 wrote:

kayani2012 wrote:Hello Zimba
please help me for one more thing.
in Table of evidence for the direct investment of funds into UK business, in one column question is "Amount of investment less the value of any accomodation" do i have to put 50,000 what i gave director loan to company?
thanks

yes

I have done investment in 4 transactions in different dates ...So should not we put the individual transaction and their respective dates in the four rows...instead of just putting 50,000

Please advise .

Thanks

Should be entered individually with their respective dates

Hi All

I am in the process of preparing my documents for extension due in two weeks time!

In the application form when filling in the employees details table, do I need to put my director salary details aswel or just the employees salary details?

Every month I pay myself director salary and my 4 employees.

Thanks for your help in advance.

Humv wrote:Hi All

I am in the process of preparing my documents for extension due in two weeks time!

In the application form when filling in the employees details table, do I need to put my director salary details aswel or just the employees salary details?

Every month I pay myself director salary and my 4 employees.

Thanks for your help in advance.

No. You have to put in only the details of your employees.