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Director Loan in Accounts

Only for UK Tier 1 (Entrepreneur) points system

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itpba
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Director Loan in Accounts

Post by itpba » Mon May 30, 2016 1:47 pm

Dear All, i am preparing my application and am confused about director salary.since i am taking director salary regulary so i have decided to transfer 70k from personal to business account to be on the safe side but my question is Do i have to show 50K OR 70K in director Loan section in ACCOUNTS ?? coz my director Loan agreement says i will be investing 50K.

Personal to businesses transfer so far is 70K and last year accounts are not made yet, please advise me what shall be mentioned in accounts. 50 Or 70 K director Loan?

Mrchaany
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Re: Director Loan in Accounts

Post by Mrchaany » Mon May 30, 2016 8:03 pm

Zimba88 can answer this issue
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Fifty5
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Re: Director Loan in Accounts

Post by Fifty5 » Mon May 30, 2016 8:10 pm

itpba wrote:Dear All, i am preparing my application and am confused about director salary.since i am taking director salary regulary so i have decided to transfer 70k from personal to business account to be on the safe side but my question is Do i have to show 50K OR 70K in director Loan section in ACCOUNTS ?? coz my director Loan agreement says i will be investing 50K.

Personal to businesses transfer so far is 70K and last year accounts are not made yet, please advise me what shall be mentioned in accounts. 50 Or 70 K director Loan?

Hi itpba

If Your director loan agreement says 50k that's fine, it doesn't have to match the accounts. Whatever is the actual you invested should be shown in your accounts.

itpba
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Re: Director Loan in Accounts

Post by itpba » Tue May 31, 2016 6:20 am

itpba wrote:Dear All, i am preparing my application and am confused about director salary.since i am taking director salary regulary so i have decided to transfer 70k from personal to business account to be on the safe side but my question is Do i have to show 50K OR 70K in director Loan section in ACCOUNTS ?? coz my director Loan agreement says i will be investing 50K.

Personal to businesses transfer so far is 70K and last year accounts are not made yet, please advise me what shall be mentioned in accounts. 50 Or 70 K director Loan?
Totally agree with you it must be shown in accounts otherwise just transferring has no value to HO but my question is do I have to show;

70K director Loan in accounts OR

50K director Loan & 20K other creditors

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Zimba
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Re: Director Loan in Accounts

Post by Zimba » Tue May 31, 2016 11:01 pm

You need 50k min to score but you can show more if you choose to. I suggest to match your DL amount with the same amount transferred to your business bank transaction
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itpba
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Re: Director Loan in Accounts

Post by itpba » Wed Jun 01, 2016 6:17 pm

zimba88 wrote:You need 50k min to score but you can show more if you choose to. I suggest to match your DL amount with the same amount transferred to your business bank transaction
Thanks Zimba88 for your response, do you mean to match the figure in the ACCOUNTS and with amount in TRANSACTIONS OR should also Amend DL and mention 70K there is well ? coz original DL drafted was for 50K

paru.org
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Re: Director Loan in Accounts

Post by paru.org » Wed Jun 01, 2016 11:40 pm

zimba88 wrote:You need 50k min to score but you can show more if you choose to. I suggest to match your DL amount with the same amount transferred to your business bank transaction
hi zimba,
many thx 4 the help u doing.
myself preparing 4 my entrepreneur extension on 50k route.
with regards to director loan , its showing in accounts as

creditors: amounts falling due withinone year
other creditors:£50,446


my accountant say creditors is form of loan but he didn't mentioned it anywhere else on account, whilst its matching the figures tf from personal to business ac in 5 installments.
Is that okay? or it needs to be mentioned as a seperate entity in annual accounts if yes can those be changed?
many thx

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Zimba
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Re: Director Loan in Accounts

Post by Zimba » Thu Jun 02, 2016 10:03 am

You can transfer the loan amount in multiple instalments but your account should show the total amount under your NAME. If your name does not show in the account, you will NOT get the investment points. Ask your accountant to add your name in the accounts notes as the creditor of the total loan amount
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

kingraja
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Re: Director Loan in Accounts

Post by kingraja » Fri Jun 03, 2016 9:00 pm

zimba88 wrote:You can transfer the loan amount in multiple instalments but your account should show the total amount under your NAME. If your name does not show in the account, you will NOT get the investment points. Ask your accountant to add your name in the accounts notes as the creditor of the total loan amount

Zimba can you plz clarify if someone is sole director & in accounts his name is mention on Director's report & on balance sheet as well with his signature, even then he needs to show his name under Director's loan account in notes?
rajathegreat

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Zimba
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Re: Director Loan in Accounts

Post by Zimba » Sat Jun 04, 2016 1:52 am

Yes, rules require it
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kingraja
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Re: Director Loan in Accounts

Post by kingraja » Sat Jun 04, 2016 11:03 am

zimba88 wrote:Yes, rules require it
Thanks Zimba,
If you don't mind Please share the link where its written.
rajathegreat

Khanbhai
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Re: Director Loan in Accounts

Post by Khanbhai » Sat Jun 04, 2016 4:14 pm

Hi,

I am new here. I am on tier 1 Entrepreneur Visa, I am a part of entrepreneur team(50,000)investment category. I have questions about Directors loan..We have invested 100K through our personal joint account to business account in various instalments as per our business requirement. As it is said our directors salary will not include in investment if we deduct directors salary 49,000 for 3 years per month 663 for each director, then our investment becomes 51,000. Question is should we show 51,000 in directors loan agreement or 100K.

Another question is can we make 1 director loan agreement for full amount or separate agreement for each transactions?

Could anyone helps me with this issue.

Thanks

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