home office rent

Hello Respected members/gurus

I am on T1 200K individual route.
It seems i will not be able to achieve my planned business given the covid situation, and i am now exploring the option of buying a ready business.

One of the points i am trying to keep in mind the additioan employee/s i have to hire in addition to current staff.
One current business that i plan to buy the business from , told me that her staff (2employees) may leave once a new owner comes and i will have to hire new staff (which is ok with me). but my question is:

How will HO know that the employees i hired are new staff (vs the old staff) and hence i can satisfy the hiring condition for T1 extension.

so business A i plan to buy has been in business for 5 years, has 2 employees. I come and buy business A and hire 2 new employees. so in essence the total headcount needed to run the business has not changed, only the names of employees.
Does this work? or do i need to hire 2 new staff (in addition to 2 that i have replaced with the old one) so that total headcount becomes 4.

many thanks in advance

Two points:

1. Money spent buying another business will NOT count as 'investment' under Tier 1E rules for the award of points. You need to invest 200K in a business that you already own.

2. The rules require you to increase the NET positions in the company you have taken over by TWO. This means that if you buy a business with two employees, you must create/maintain 4 positions or more for at least 12 months each. So if you buy this business and the employees leave, you must create 4 positions and NOT two. You must submit extra evidence if you buy/take over another business and show how many positions existed before you bought that business. That is how UKVI determines if you satisfied the requirements or not

You really need to go and read the Tier 1E guide. These are very clear there

Thanks Zimba!

I have spent the first 3months working from my home. Is there a way that i can 'cross charge' some of the home rent to my company.
i.e my rent is 2000, can i say charge 300 per month to my company? someone told me that i have to declare this to the council as the council tax will change.
any help guidance is very much appreciated

zCIO wrote: ↑

Sat Oct 31, 2020 1:54 pm

I have spent the first 3months working from my home. Is there a way that i can 'cross charge' some of the home rent to my company.
i.e my rent is 2000, can i say charge 300 per month to my company? someone told me that i have to declare this to the council as the council tax will change.
any help guidance is very much appreciated

This has no relevance to immigration rules. Talk to your accountant as there can be tax implications also.