Tier1 Refused (14 days for next steps): Part of investment discounted

Hi,

- Initial 50K Application from Graduate Entrepreneur

Received a decision letter for my Tier 1 Application.
I showed More than £50K. But just over £30K was not considered and they considered only just over £20K.

Reason;
I used different evidence to show the funds.
1.) The just over 20K which they accepted appeared on UnAudited Accounts.

2.) I made a loan of just over £12K
I used director's loan and business bank statement to show i had invested. The amount was transferred in different sums to make up the just over 12K. However i explained it in the Director's loan. So i am not sure if i was supposed to show those individual transfers or what in the application form?
As i just entered the sum total in the application form and but the business bank statement showed the separate transfers which i highlighted and and explained in cover letter.
(NOTE: They did not mention this amount specifically in the decision letter.)

3.) I showed had expenditures of just over £18K
This i showed business bank statement and receipts and invoices.
They mentioned for this amount i used business expenditures as evidence by showing receipts, invoices with business bank statement. And this is not acceptable as they cannot see it in Unaudited accounts.

Summary;
So they discounted the just over £30K that i did not show it in Unaudited accounts.
But the problem is i used my unaudited accounts till last year end.
And all this over £30K happened after the year end. But how do they expect those accounts to show this new amount invested?

- Have reached out to my account to see if its possible to do a mid year unaudited accounts. Thinking of changing my year end and preparing a new unaudited account to December or January. So can use.
Just confused and not sure how to approach this.

- Or Do i have to show the individual transfers from my personal account to the business account for that £18K? As that amount is not from business sales or revenue. Its from my funds i transferred to the business and used. Just that i showed it in receipts, invoices spent.

- Also, they discounted all of the over £30K for reasons that its not in unaudited accounts. They did not mention the over £12K at all and why they rejected it. They just added it to the over £18K and discounted. And reason is they can't find the over £30K in unaudited accounts. But no specific explanation for the £12K which used business bank account and personal to show transfers in different sums and director's loan stating the over £12K.

Look forward to hearing from you as need to find out the next steps.
How am i supposed to present this 50K so it shows i have invested it. As i have actually put 50K of my funds in there. Probably might have been the way i presented it.
As they mention on their site the accept business bank statements, director's loan. But not sure why the refused it.

As they mention because they cannot see that amount in the un-audited accounts as specified at 45 (c) so the money has not been directly invested in my business.

Should i request my account to do a new Un-audited account to December and show this funds was invested my or what do i do? Or if its possible to change my business year and do that? As they seem to only mention its because they can see those funds in the unaudited accounts. But this new amount was invested and spent after my year end which was way back in July.
Can i do that and just make a fresh new application?

You clearly did not read the requirements. There are three pieces of evidence needed for investment:
- unaudited or management accounts
- director loan agreement
- bank statements
You did not provide the first one, so the application was correctly refused.
You can get your accountant to produce a management account for partial periods.

Hi Marcnath,

Thanks so much for your response. And truly appreciate your piece of advice.
Will get immediately to my accountant to produce the management accounts for the partial period between August - December.

And send in a new application.

Thanks so much.

Hi marcnath,

One more question.
Got with a conversation with someone and they were suggesting i use a law firm.
So my application can checked before sending it off to HO.

I mean i now know the problem and working with my accountant to fix which will use to apply. Have just decided to get new partial unaudited accounts which covers the period that it did not include before (August - December).

But the person said it is worth using a law firm to check because if i make a second new application that will be my last one. Which if anything is wrong with it then i cannot do a new fresh application.
And will have to go and apply from abroad and now need £200K and not the 50K.

Just wanted to check if this is true or rules have changed or if its always been the this way.
I mean i am going to do everything to make sure this application meets all requirements this time but its good to know things like this.

Many thanks in advance.

A little confused.

Also, how will i update my director's loan.
For instance, in my initial application, i had a director's loan agreement at the start of my business operations which says i plan to put more than 23K at different points.
However, HO accepted the 20K which was in the accounts.
I had another director's loan of more 12K before my application.

But if now do a new set of audited accounts. It is now just going to show a global figure of say 51K.

Can i use only the initial director's loan i had mentioning say i will invest 24k and more as needed?
And that should cover everything including the 50K.
Or update that so it reflects it?

Or is it better to contact an immigration lawyer with the number above (workpermit.com) for this.

Not sure what exactly you are checking.
But, yes, if the second application is refused you cannot apply again in country as you would have an overstay period of more than 14 days.
In fact you may not be able to even apply from overseas depending on how long you would be an overstayer for.
Yes, so you need to be doubly careful. But just because you use a lawyer it does not solve it. It is still your responsibility. Plenty of applications made by lawyers have also had errors

Thanks Marcnath.
Now i know why it was refused.
Think its just the thought of this being my last chance to file a new application.
So was thinking of just just getting another person to have a look before i submit.
- I will be extra careful.

Will consider calling the paid service number for Workpermit.com at the top of this forum to find out.

Hey Macnath,

My accountant wanted to find out if he prepared the accounts to say January 15th, will this be a problem?
Instead of say January 31st.

Thanks in advance.

QuestWE wrote: ↑

Tue Feb 05, 2019 3:54 pm

Hey Macnath,

My accountant wanted to find out if he prepared the accounts to say January 15th, will this be a problem?
Instead of say January 31st.

Thanks in advance.

Date is immaterial- it just has to show the investment

Thanks

Hi Marcnath,

First will like to thank you for your invaluable support which should be commended.

I have a question.
Got my partial accounts from accountant. So that's now sorted.

But just want to clarify something before i submit.
Accountant Accounts show have put over £50k required which is fine.
Cash transfers from my personal account to the business is over the £50K required. Which is fine.
- My Question:
I did a cash transfer of an amount of say £1500 in January 2017.
During my first application that was within the 24 months period so no issue. Now i have to do a fresh application, that amount falls out of the 24 months period.
Will this be a problem?
Or i should transfer an additional £1500 from personal to business and update accounts before sending it in?

*It should be noted almost all of that £1500 was not spent in that month. In fact only a very small amount which doesn't change much. Which if take the amount i spent out of it, i will still be way above 50K

Or the 24 months only apply when you actually spend or expenditures (business of course)?

Just want to do final checks before i send as will not have a 2nd chance.

Look forward to hearing from you.

QuestWE wrote: ↑

Sat Feb 09, 2019 11:24 am

Hi Marcnath,

First will like to thank you for your invaluable support which should be commended.

I have a question.
Got my partial accounts from accountant. So that's now sorted.

But just want to clarify something before i submit.
Accountant Accounts show have put over £50k required which is fine.
Cash transfers from my personal account to the business is over the £50K required. Which is fine.
- My Question:
I did a cash transfer of an amount of say £1500 in January 2017.
During my first application that was within the 24 months period so no issue. Now i have to do a fresh application, that amount falls out of the 24 months period.
Will this be a problem?
Or i should transfer an additional £1500 from personal to business and update accounts before sending it in?

*It should be noted almost all of that £1500 was not spent in that month. In fact only a very small amount which doesn't change much. Which if take the amount i spent out of it, i will still be way above 50K

Or the 24 months only apply when you actually spend or expenditures (business of course)?

Just want to do final checks before i send as will not have a 2nd chance.

Look forward to hearing from you.

The 24 months is for date of investment, not spending (which has no relevance in the immigration rules).

So, you should add the 1500 and update your accounts before applying.

Okay thanks so much for that!

Will immediately do that and send a notice to the accountant to update it.

Hi Marcnath,

Hope this meets you well.
Still waiting for feedback but have a quick question.
Can i continue to work on my business while i wait for feedback?
As rather than wait and wait and wait i could well be getting something done.

Thanks for your response in advance.

Kind Regards

QuestWE wrote: ↑

Wed Mar 20, 2019 9:19 am

Hi Marcnath,

Hope this meets you well.
Still waiting for feedback but have a quick question.
Can i continue to work on my business while i wait for feedback?
As rather than wait and wait and wait i could well be getting something done.

Thanks for your response in advance.

Kind Regards

Sure you can, as a Director. You can't be on the payroll

Thanks Marcnath
That's fine. I am not on a payroll. My business is still in development and plans to launch soon. So that is not an issue.