Weekly payment and monthly payroll

Hello, everyone

I have 1 question regarding buying a restaurant(lease&fiting etc..) that has existing employees.

I bought a restaurant for £100K(it has few part/full time employees), and I will manage to invest an extra £100K to cover it as that £100K didn’t count towards the investment.

The restaurant was operating by X limited(previous owner is director of X limited), and I use my Y limited company to buy this restaurant (nothing to do with X limited)
The concern that I have is my immigration solicitor told me that if I buy this restaurant and not owner’s Ltd company, then I don’t need to create extra 2 jobs in addition to existing ones. As my limited company’s payroll will have 0 history.

Based on my original understandings, I am taking over an exiting “actual business”, and HO will know when restaurant started in the first place. However, the answer from my solicitor is something new to hear.

So what my solicitor said was true or not? that I’m buying a restaurant not the Ltd company which used to operate it, then the existing employees of the restaurant will count as it will be new from my Ltd company.

Just need some clarification on this.
Thanks in advance

Your solicitor is correct in the strict reading of the rules.
But there is enough leeway in the rules for HO to still define your business as an existing business so I wouldn't take the risk if I were you.

Thanks Marcnath,

So I should request a 12 months employees payroll from privious Limited company that owns the restaurant?
For example:
A full time employee has left 2 months before I take over restaurant, in this case I should also find a replacement for it or not?

Thanks again.

I may have misread your initial post.

You mention the restaurant had nothing to do with X. So, who did you pay to for the purchase of the restaurant

Sorry, I may have confused you with my wording.

The X limited operate the restaurant, but I’m buying the restaurant not X limited.
I will use my Ltd to operate the restaurant.

At the moment solicitor went on Xmas holiday but completion will be January. I think the money I pay on completion is either to that X limited company account or the vendor/director of X limited personal account. Does it make any difference on who I will be paying to?

johnsonlll wrote: ↑

Thu Dec 20, 2018 11:18 pm

Sorry, I may have confused you with my wording.

The X limited operate the restaurant, but I’m buying the restaurant not X limited.
I will use my Ltd to operate the restaurant.

At the moment solicitor went on Xmas holiday but completion will be January. I think the money I pay on completion is either to that X limited company account or the vendor/director of X limited personal account. Does it make any difference on who I will be paying to?

Ok. My original opinion stands.
Investment is clear - money paid to purchase will not be counted.
Employment is unclear. It also depends on what exactly your purchase contract is. If, for example, it is under TUPE, then clearly you have to hire additional employees. On the other hand, if you only purchase the assets, you may not need to.
You should collect all the necessary documents before completion.
If I were in your place, I would still file the extension as a new business. But be prepared with all the documentation in case HO asks for it as additional information.

johnsonlll wrote: ↑

Thu Dec 20, 2018 12:02 pm

A full time employee has left 2 months before I take over restaurant, in this case I should also find a replacement for it or not?

The rules are not clear how the increase of two net jobs is calculated.
So, if this becomes an issue, I believe it is up to you to argue. You could use last employment count or average.
I don't think this has ever been disputed and if it is, it will likely have to be decided by a court.

Thanks Marcnath for your advice.

I think I may just play safe and hire 2 new 30hrs employees. In this case, the existing employment, both worked 40+ hours, if I cut down their hours to 30(so move some hours to my new hires).
Would it be issue? As guide states that create 2 new FT jobs, but I also passing by some topics mentioned the working hours matters

johnsonlll wrote: ↑

Fri Dec 21, 2018 9:44 am

Thanks Marcnath for your advice.

I think I may just play safe and hire 2 new 30hrs employees. In this case, the existing employment, both worked 40+ hours, if I cut down their hours to 30(so move some hours to my new hires).
Would it be issue? As guide states that create 2 new FT jobs, but I also passing by some topics mentioned the working hours matters

Sure, that would work. There is absolutely nothing that says working hours need to be maintained (beyond the 30 hr requirement for FT job)

Thanks very much Marcnath,

Great advice!

Merry Christmas and Happy New Year!

Hi all,

I’m a restaurant owner, and I pay my employees on weekly basis. The rate is £8.72/hr at 35hrs/week. So that works out £305.20/week salary. I transfer £306/week to my employees to round up the numbers. My accountant issues payslip once/month at £1322.53/month. Recently, my accountant asked me I should make £305.20 for 3 weeks and make up what’s left on the fourth week compare to £1332.53. I am confused, the calculation I made and paid is correct based on my understanding (52weeks/year) but my accountant said if my make payments based on what they suggested is better for HO to see and matches to the payslip figure...but in reality it’s hard for me to pay like that way and I started to worry if I have been paying wrongly in the past years.
So ask for advice on this.

Thanks

Regards

Johnson

johnsonlll wrote: ↑

Mon Nov 23, 2020 3:17 pm

Hi all,

I’m a restaurant owner, and I pay my employees on weekly basis. The rate is £8.72/hr at 35hrs/week. So that works out £305.20/week salary. I transfer £306/week to my employees to round up the numbers. My accountant issues payslip once/month at £1322.53/month. Recently, my accountant asked me I should make £305.20 for 3 weeks and make up what’s left on the fourth week compare to £1332.53. I am confused, the calculation I made and paid is correct based on my understanding (52weeks/year) but my accountant said if my make payments based on what they suggested is better for HO to see and matches to the payslip figure...but in reality it’s hard for me to pay like that way and I started to worry if I have been paying wrongly in the past years.
So ask for advice on this.

Thanks

Regards

Johnson

How you pay is immaterial from the point of immigration rules.

Your monthly payslip shows £1322.53. At £8.72/hr, it works out to 151.66 hrs/month, which is more than the 130 required.