Tier 1 Entrepreneur Extension Investment in Business Premise

Hello,

I am working as a web designer and most of my work done from home. I am confused about the ukba investment in business premises. Can I use one part of the property for business and use that value as an investment. Please help me as simply I do not understand what does the ukba statement "the value of this part of property will not be counted towards investment"

"If you have bought property that includes residential accommodation the value of this part of the property will not be counted towards the investment. The value of this part of the property should be deducted from the amount of the business investment. You must provide an estimate of the value of the living accommodation if it is part of the premises also used for the business,
from a surveyor who is a member of the Royal Institution of Chartered Surveyors (RICS)"

If you have a shop on the high street and you buy the shop but it comes with a flat above the shop, you can't claim the value of the flat as part of the investment.

However, In your case you are buying entirely residential property but will be working from home. You can't claim anything for investment purposes for that!

deepakjr123 wrote:Hello,

I am working as a web designer and most of my work done from home. I am confused about the ukba investment in business premises. Can I use one part of the property for business and use that value as an investment. Please help me as simply I do not understand what does the ukba statement "the value of this part of property will not be counted towards investment"

"If you have bought property that includes residential accommodation the value of this part of the property will not be counted towards the investment. The value of this part of the property should be deducted from the amount of the business investment. You must provide an estimate of the value of the living accommodation if it is part of the premises also used for the business,
from a surveyor who is a member of the Royal Institution of Chartered Surveyors (RICS)"

I think the post refers to someone that is working from home basically implying the following. If you buy a flat for residential purposes then this does not count towards your investment.

If however, you have a home office (a room , a study etc), then this part can be counted towards your investment and you have to obtain an estimate of this part of the property via the RICS.

At least this is how I understood it…. maybe one of the more senior members can offer more insight.

That is what I thought too can claim one part of the room as investment because normally if you are self employed you can claim tax relief from hmrc for that part of room if you work from the home. I am having a one bedroom flat currently renting and it has a drawing room and I am using it as my office and I am working for 3 companies all from home except will meet them 1 day every week.

Will it be a good idea to call ukba to clarify their own statement. It is rather confusing than helpful as they mention about the surveyour

deepakjr123 wrote:That is what I thought too can claim one part of the room as investment because normally if you are self employed you can claim tax relief from hmrc for that part of room if you work from the home. I am having a one bedroom flat currently renting and it has a drawing room and I am using it as my office and I am working for 3 companies all from home except will meet them 1 day every week.

Will it be a good idea to call ukba to clarify their own statement. It is rather confusing than helpful as they mention about the surveyour

I am by no means an expert, but it is what I understood. It might be better to consult with an immigration solicitor for professional advice.

But you mention in your post that you are renting a flat, I doubt that would work. The post specifically mentions "purchase"

deepakjr123 wrote:That is what I thought too can claim one part of the room as investment because normally if you are self employed you can claim tax relief from hmrc for that part of room if you work from the home. I am having a one bedroom flat currently renting and it has a drawing room and I am using it as my office and I am working for 3 companies all from home except will meet them 1 day every week.

Will it be a good idea to call ukba to clarify their own statement. It is rather confusing than helpful as they mention about the surveyour

The tax laws with regard to use of property are not relevant to the UKBA policy for T1 (ent). It is a totally different issue!

deepakjr123 wrote:That is what I thought too can claim one part of the room as investment because normally if you are self employed you can claim tax relief from hmrc for that part of room if you work from the home. I am having a one bedroom flat currently renting and it has a drawing room and I am using it as my office and I am working for 3 companies all from home except will meet them 1 day every week.

Will it be a good idea to call ukba to clarify their own statement. It is rather confusing than helpful as they mention about the surveyour

The tax laws with regard to use of property are not relevant to the UKBA policy for T1 (ent). It is a totally different issue!

@ deepakjr123, the best answer can only be given by a qualified accountant who should be able to tell you what cost you can claim when using your house as office space.

All the cost that can be claim under the law can then be included as part of your invested funds.

Absolute nonsense! A qualified accountant will know the tax rules but that will be irrelevant to the rules that define the investment for a T1 visa. I am astonished that some of the posters here are not able to distinguish how these two things are completely unrelated.

@ Lucapooka, you don't need to term other people opinion as nonsense if you don't agree with it.

All Tier 1 entrepreneur applicants are also self-employed by default and will have to claim some sort of expenses which is the same as other self-employed individuals.

When you use a spare room in your house as office space. All bills and the office space rent will be deducted and calculated as part of your expenses. You will need an accountant to help you with this.

This is optional, you can decide to give a free room in your house for your office use or calculate it as part of your expenses.

Personally, it is better to get an office space out of your home use because it is straight forward and helps to give clarity on bills (electricity, landline phone, gas e.t.c) when calculating.

Good luck.

When you use a spare room in your house as office space. All bills and the office space rent will be deducted and calculated as part of your expenses. You will need an accountant to help you with this.

This is optional, you can decide to use a room in your house free for your office use or calculate it as part of your expenses.

Personally, it is better to get an office space out of your home use because it is straight forward and helps to give clarity on bills (electricity, landline phone, gas e.t.c) when calculating. You can start with a room in your house for a year or so then, and then plan to get an office space later when you can afford it. It is really up to you and also this might depend on the type of job you do and what is expected from your company now and in the next 18months.

For every decision you take, be mindful that it is for "tier 1 entreprenuer" and put other things into consideration. I think this is what Lucapooka is trying to explain. What works for people without visa restriction might not easily work out for tier 1 so please, make sure you speak to your accountant in time and plan well.

Good luck.

I have called ukba helpline and initially they were not sure about what to say and then they take my contact details and ring me up after investigation and confirm it is not possible to claim anything if you live in that property

But again you never know what the ukba policy are as even they themselves have no particular idea. I am thinking about moving to a studio flat and rent a small office so literally again same cost. Currently I am living in 1 bed flat with sitting room and it will cost same for me when I rent studio flat and a small office. The only result is complete inconvenience and unnecessary travelling and waste of time. Thanks to stupid policies and out of reality laws

The main reason I decided to go forward with is because I got my visa application rejected for the fist time and the reason the case worker said was one line of information was missing from the document I submitted. He rejected me without even asking why that line is missing and I lost 1030 as fees and 2 days to collect and fill the application

Now the document which I submitted was from UKBA policy guidance last page where they are displaying sample bank letter. I send that same letter without changing a singe word to my bank manager and he just change the name and account no and include the amount. But for some reason the case worker required is own personal version of document and rejected me without even giving me chance to appeal. At the end of the day I had to pay fees twice and nearly 2100 and 1 week of work

There is no reason for me to say these stuffs in this posts but this is what actually happening with ukba

@ deepakjr123, calling Home Office for clarification on the use of your home as office space seem a little bit funny, you are an entrepreneur and you should be able to research on your own what are term as running cost in businesses. Anyway, if you follow the usual law on using home as office space, then you should be fine.

I will like to ask you one question about your second application, when you submitted your second application, did you still have your previous visa or has it expired?

Well the reason I did call ukba is because you can see the replies I got here are all different to each other, yes then I though best way is to call the ukba itself

And the usual procedure to calculate business cost and running business would be ok as you mentioned is wrong at least according to the information I received from ukba. You cannot simply claim any investment or business expense if you are living in the property (asper the ukba agent from croydon)

Yes I was having my previous visa when I got my visa application rejected for the first time and that is the reason I didn't have the right for appeal even though the reason I got the rejection was complete nonsense. Any person who has a common sense can understand that because it is simply the document from ukba policy guidance itself.