Question on evidence showing how much has been invested

I first obtained my Tier 1 E visa on 25.04.2013, and started my company on 25.03.2013 mainly running restaurant.

On 01.05.2013, I personally deposited 200K into my company bank account. And when my accountant made the unauditted accounts ended on 31 August 2014, there is no info about my 200K investment into my business.

And right now it seems that it is a problem, because I need to show evidence of direct cash investment, which the accounts must show the investment in money made directly by me, in my own name.

My question is, can I ask my accountant now to redo the unauditted accounts ended on 31 August 2014 in order to add info about my investment in the form of directors loan, and make a director's loan agreement now?

I am desperately needing some advice now, cuz my visa will expired this month!

Thanks in advance!

You failed to read the guide and follow the extension rules which have not changed since 3 years ago. You should have made sure that your money is invested in form of director's loan or share capital under your name (shown in the accounts)
Ask your accountant to prepare management accounts for you, showing the money invested clearly under your name as director's loan. You also need to prepare a loan agreement as required in the guide.

I have similar situation with my accountant. How can management account cover previous year investment account entries which has been missed?

Does anyone know if previous years accounts can be amended which are more than years old?

Thank you.

helpingperson wrote:I have similar situation with my accountant. How can management account cover previous year investment account entries which has been missed?

Does anyone know if previous years accounts can be amended which are more than years old?

Thank you.

Surely your previous accounts cover your investment but your name is not mentioned on the account notes (something that HO requires)
If you have not repaid your loan back to yourself, any new management account you prepare afterwards will show the loan/shares. You simply need to add your name to the account notes to satisfy HO requirements.

Hello Zimba,

It is not about name that is missing in accounts, it is transactions that have been omitted by accountant.

We transferred about £43k in first year, only about £22k is recorded under other creditors, no other liabilities, no share capital, in that year accounts.

How you suggest we go about this?


Do you know how long we have to amend accounts?

your accountant can put director name in previous annual or management account

I might be missing something here but why everyone is suggesting about name?

I have clearly said that amount is not entered at all in accounts.

Does anyone who long we have to edit accounts?

We transferred about £43k in first year, only about £22k is recorded under other creditors, no other liabilities, no share capital, in that year accounts.

How did youe accountant accounted for the remaining 21k then? Money in the bank or expenses of21k cant just disappear from a small company account.

Well you can ask your accountant to amend the accounts and if you post the amended accounts to companies house they will update their system in about a week.

He somehow did not record into accounts at all.

He was saying something that you had sales as well into business bank account, but I have been saying to him that all money from personal to business account is director loan and needs to be recorded into liabilities in balance but being layman I somehow gave up to his logic/explanation even though now that seems wrong and illogical. Yes, there was money into business account from sales but we did not withdraw that money or transferred sales to personal account, instead it was spend on stock, salaries, etc..

May be someone can shed more light on this now.

Is there a time limit we have to amend the accounts?

Your accountant seems to be incompetent. Any money you transferred to your company is legally directors loan and must be taken into consideration while compiling the annual accounts, irrelevant of whether company had any sales or not.
The loan usually shows up under Creditors section of your accounts. In the accounts notes it clarifies that this loan came from you, as a director. The accounts also should show any money left in the bank, matching what you reported in your balance sheet.

Amendments of accounts is possible but you could face fines and questioning from companies house. Given that you signed the accounts as correct before submission, you are fully responsible.

zimba88 wrote:Your accountant seems to be incompetent. Any money you transferred to your company is legally directors loan and must be taken into consideration while compiling the annual accounts, irrelevant of whether company had any sales or not.
The loan usually shows up under Creditors section of your accounts. In the accounts notes it clarifies that this loan came from you, as a director. The accounts also should show any money left in the bank, matching what you reported in your balance sheet.

Amendments of accounts is possible but you could face fines and questioning from companies house. Given that you signed the accounts as correct before submission, you are fully responsible.

Zimba,

Thank you very detailed response. You are right, we were incompetent as well. It happens when you pay a professional and don't know that profession much yourself, plus you have trust that they know what they are doing.

Not sure of way out.

Hi

I did this to correct an incorrect and material entry, and there was no problem.
I filed an amendment for year 1 and there were no fines or problems.
Fines are only applied if you fail to submit the initial return, not for amendments.

dd156 wrote:Hi

I did this to correct an incorrect and material entry, and there was no problem.
I filed an amendment for year 1 and there were no fines or problems.
Fines are only applied if you fail to submit the initial return, not for amendments.

Thank you for letting me know of this. How exactly you did? Please could you provide more information so I can get this done from my accountant?

Your accountant would know about it, I think.
HMRC accept amendments online.
Companies House have to be posted your amended accounts on paper, with amended written on them.
The information is available on their websites. I will post the links later today.

Also, in some cases previous year adjustments can be made but you should get a second opinion from another accountant.

If the accounting year ended on 31/08/2014, then you must have had to submit the initial accounts by 31/08/2015 with HMRC? In that case, you can amend your accounts with HMRC by 31/08/2016. There is no deadline to submit your amended accounts with Companies House but these have to be sent on paper.
https://www.gov.uk/annual-accounts/corr ... amendments
https://public-online.hmrc.gov.uk/infor ... nitygroup=

I have talked to my accountant, and it seems that I have to let him amend the annual accounts. And now I have 2 questions:

1. how long can the amendments be done? As my visa will soon be expired on 23rd April.

2. About the director's loan agreement, is it drafted by the accountant? And how it works... cuz my company doesn't have company seal.. does the agreement need to be printed on companies titles paper? or accountant's firm titles paper?

Desperately,

Fang

1. how long can the amendments be done? As my visa will soon be expired on 23rd April.

The moment your accountant gives you the amended accounts !

2. About the director's loan agreement, is it drafted by the accountant? And how it works... cuz my company doesn't have company seal.. does the agreement need to be printed on companies titles paper? or accountant's firm titles paper?

It has nothing to do with your accountant. It is a loan agreement between you and your company saying that you have given your company an unsecured loan and it must have the exact terms given in the guide. You can draft it yourself on a paper and sign it.

Thanks a lot everyone for your useful contribution.

zimba88 wrote:

1. how long can the amendments be done? As my visa will soon be expired on 23rd April.

The moment your accountant gives you the amended accounts !

2. About the director's loan agreement, is it drafted by the accountant? And how it works... cuz my company doesn't have company seal.. does the agreement need to be printed on companies titles paper? or accountant's firm titles paper?

It has nothing to do with your accountant. It is a loan agreement between you and your company saying that you have given your company an unsecured loan and it must have the exact terms given in the guide. You can draft it yourself on a paper and sign it.

A million thanks Zimba! I'll draft the agreement today based on the requirements on the Guidance

Did you make any agreement before you transferred the funds? The agreement is typically made in advance.

dd156 wrote:Did you make any agreement before you transferred the funds? The agreement is typically made in advance.

No I did not, cuz I was not aware of this. I simply just transferred 200K all in once into company bank account. Is this goona be a problem? I transferred 200K directly into company bank account on 1 May 2013, thus I intend to put the date on loan agreement before 1 May I guess.

weirdofang wrote:

dd156 wrote:Did you make any agreement before you transferred the funds? The agreement is typically made in advance.

No I did not, cuz I was not aware of this. I simply just transferred 200K all in once into company bank account. Is this goona be a problem? I transferred 200K directly into company bank account on 1 May 2013, thus I intend to put the date on loan agreement before 1 May I guess.

As long it is transferred can be checked in bank statements, it is entered in accounts, then you can make director loan agreement at any time, it is company internal documents, you can back date and change as many times you want before your application.

helpingperson wrote:

weirdofang wrote:

dd156 wrote:Did you make any agreement before you transferred the funds? The agreement is typically made in advance.

No I did not, cuz I was not aware of this. I simply just transferred 200K all in once into company bank account. Is this goona be a problem? I transferred 200K directly into company bank account on 1 May 2013, thus I intend to put the date on loan agreement before 1 May I guess.

As long it is transferred can be checked in bank statements, it is entered in accounts, then you can make director loan agreement at any time, it is company internal documents, you can back date and change as many times you want before your application.

Good to know! Thank you very much! And I just finish drafting the agreement, and now waiting for my accountant to amend the annual accounts ended on 31 August 2014.

Bad news, things turned out that the annual accounts have many errors, and that's part of reason why the accountant was not willing to sign his name on the compilation report page. I indeed transferred 200K into my company account, but the accountant did not added this in the relevant business account, that was a bomber! (after July 2015, I stopped working with that accountant and changed a new one)

And as my accountant now tell me that, my latest management accounts only shows my share capital of around 100K. As the annual accounts ended on 31 August 2014 have so many errors, my current accountant does not suggest me provide this. And as it may, I still need to invest another 100K into company.

My visa will be expired on 23rd April, although I still have 28 days later. My solution now, is to transfer the remaining 100K into company bank account in terms of Directors Loan, and sign an agreement with my company. Then let my current accountant do the management accounts which add this information, including the info on Creditor column to add my name. But my current accountant told me that it won't be done until early May.

Does my solution here can prove my 200K investment?

Regards