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Director's Loan agreement and Fund transfer

Only for UK Tier 1 (Entrepreneur) points system

Moderators: Casa, push, JAJ, ca.funke, Amber, Zimba, vinny, Obie, EUsmileWEallsmile, batleykhan, geriatrix, John, ChetanOjha, archigabe

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tier1entrepreneur-A
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Posts: 141
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Re: Job creation

Post by tier1entrepreneur-A » Sat Jan 12, 2019 11:24 am

marcnath wrote:
Sat Jan 12, 2019 7:18 am
tier1entrepreneur-A wrote:
Sat Jan 12, 2019 12:55 am
Hi Team,

I would like your advice with regards to the following:

I have two businesses, company X and Y (totally different businesses), and each have it's own account and business bank account,

I have one employee (A) has been working with me in company X FT for over 12 months period, and I would like to use him on company Y as FT (and he will leave company X and will be working for company Y only),

In case employee (A) works with me in company Y for 12 months or more FT, does this will be counted as TWO FT positions and fulfill HO requirements?

Thanks in advance for your support.

Best Regards.
Will the employee being doing the same job ?

It does feel like two jobs, but since the immigration rules do not specifically define what a "job" is, HO can challenge this.

Given it is so easy to set up and close companies in the UK, if HO allows this, people can just start one company employ someone and then next year start a new company and move the person over. Which is then against their objective of creating two separate jobs. So I expect they will try to challenge this.
Thanks marinate for your reply, it's much appreciated,

It will be different job, and both companies will continue running (different business type),

Best Regards.

tier1entrepreneur-A
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Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Job creation

Post by tier1entrepreneur-A » Sat Jan 12, 2019 12:32 pm

Thanks marcnath for your reply, it's much appreciated,

It will be different job, and both companies will continue running (different business type),

Best Regards.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Business activities

Post by tier1entrepreneur-A » Wed Jan 23, 2019 3:33 pm

Hi Team,

I have an opportunity to do some business with a business located in another country (Country "A"),

If the case is as following, Is it will be acceptable by HO:

My company "UK" will have an agreement with company "Overseas company" based in country "A" (type of the business will be to fabricate/manufacture and exporting a product to another country "B"), and the agreement duration between my company "UK" and company "Overseas company" will be for 12 or 18 months period.

My UK company "UK" will transfer the money from its business bank account in the UK to company "Overseas company" in its business bank account in country "A",

The profit will be transferred from company "Overseas company" business bank account to my UK company "X",

I will make a few trips to country "A" and country "B" to follow up with my business.

Does that business will have an issue later on during my extension?

It's a real business, and all the transaction will be between business bank accounts (between my UK company from one side, with the other overseas company (not my own company))

Looking forward to hearing from you,

Thanks in advance.

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marcnath
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Location: Milton Keynes

Re: Business activities

Post by marcnath » Wed Jan 23, 2019 8:48 pm

tier1entrepreneur-A wrote:
Wed Jan 23, 2019 3:33 pm
Hi Team,

I have an opportunity to do some business with a business located in another country (Country "A"),

If the case is as following, Is it will be acceptable by HO:

My company "UK" will have an agreement with company "Overseas company" based in country "A" (type of the business will be to fabricate/manufacture and exporting a product to another country "B"), and the agreement duration between my company "UK" and company "Overseas company" will be for 12 or 18 months period.

My UK company "UK" will transfer the money from its business bank account in the UK to company "Overseas company" in its business bank account in country "A",

The profit will be transferred from company "Overseas company" business bank account to my UK company "X",

I will make a few trips to country "A" and country "B" to follow up with my business.

Does that business will have an issue later on during my extension?

It's a real business, and all the transaction will be between business bank accounts (between my UK company from one side, with the other overseas company (not my own company))

Looking forward to hearing from you,

Thanks in advance.
What would that have to do with any immigration rules unless what you are actually doing is investing into the other company
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Re: Business activities

Post by tier1entrepreneur-A » Wed Jan 23, 2019 8:54 pm

marcnath wrote:
Wed Jan 23, 2019 8:48 pm

What would that have to do with any immigration rules unless what you are actually doing is investing into the other company
Thanks marcnath,

It will be actually cooperation between both companies to cover the market in country "B" needs.

It's Ok with HMRC, but I just wondering if at any point the HO can have any issue with it, as the money will be transferred to another company in another country.

Looking forward to hearing from you,

Thanks in advance.

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marcnath
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Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Business activities

Post by marcnath » Wed Jan 23, 2019 9:55 pm

tier1entrepreneur-A wrote:
Wed Jan 23, 2019 8:54 pm
marcnath wrote:
Wed Jan 23, 2019 8:48 pm

What would that have to do with any immigration rules unless what you are actually doing is investing into the other company
Thanks marcnath,

It will be actually cooperation between both companies to cover the market in country "B" needs.

It's Ok with HMRC, but I just wondering if at any point the HO can have any issue with it, as the money will be transferred to another company in another country.

Looking forward to hearing from you,

Thanks in advance.
I have not gone back through the whole thread and I don't recall your situation entirely.

But the only thing that I can imagine would have an impact is clause 245D(c)(ii) where the money invested excludes investing in businesses, other than those which the applicant is running as self-employed or as a director

I can't assess whether it applies in this specific case as there are a number of issues - is it the investment money, is it an investment in other business and so on.

You seem to indicate that is not the case but you know your business - I don't.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Re: Business activities

Post by tier1entrepreneur-A » Sat Jan 26, 2019 9:25 pm

marcnath wrote:
Wed Jan 23, 2019 9:55 pm
tier1entrepreneur-A wrote:
Wed Jan 23, 2019 8:54 pm
marcnath wrote:
Wed Jan 23, 2019 8:48 pm

What would that have to do with any immigration rules unless what you are actually doing is investing into the other company
Thanks marcnath,

It will be actually cooperation between both companies to cover the market in country "B" needs.

It's Ok with HMRC, but I just wondering if at any point the HO can have any issue with it, as the money will be transferred to another company in another country.

Looking forward to hearing from you,

Thanks in advance.
I have not gone back through the whole thread and I don't recall your situation entirely.

But the only thing that I can imagine would have an impact is clause 245D(c)(ii) where the money invested excludes investing in businesses, other than those which the applicant is running as self-employed or as a director

I can't assess whether it applies in this specific case as there are a number of issues - is it the investment money, is it an investment in other business and so on.

You seem to indicate that is not the case but you know your business - I don't.

Thank marcnath.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Dependant ILR

Post by tier1entrepreneur-A » Sat Jan 26, 2019 9:29 pm

HI team,

Does tier 1 entrepreneur dependant must be staying for 5 years as tier 1 entrepreneur dependant before applying for ILR, or the qualified 5 years can be mixed between dependant under non point based work visa and dependant unter PBS - Tier 1 ?

Thanks in advance.

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marcnath
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Posts: 5843
Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Dependant ILR

Post by marcnath » Sat Jan 26, 2019 11:03 pm

tier1entrepreneur-A wrote:
Sat Jan 26, 2019 9:29 pm
HI team,

Does tier 1 entrepreneur dependant must be staying for 5 years as tier 1 entrepreneur dependant before applying for ILR, or the qualified 5 years can be mixed between dependant under non point based work visa and dependant unter PBS - Tier 1 ?

Thanks in advance.
It can be a combination of any dependant visa, but not work visa
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Re: Dependant ILR

Post by tier1entrepreneur-A » Sat Jan 26, 2019 11:34 pm

marcnath wrote:
Sat Jan 26, 2019 11:03 pm
tier1entrepreneur-A wrote:
Sat Jan 26, 2019 9:29 pm
HI team,

Does tier 1 entrepreneur dependant must be staying for 5 years as tier 1 entrepreneur dependant before applying for ILR, or the qualified 5 years can be mixed between dependant under non point based work visa and dependant unter PBS - Tier 1 ?

Thanks in advance.
It can be a combination of any dependant visa, but not work visa
Thanks marcnath for your reply, it's much appreciated,

That will be great,

So in my dependant case, They can have 8 months as dependants under non point based visa, and then 4 years and 4 months as a dependants under Tier 1 entrepreneur visa,

Have you got any reference for that, that will be really helpful.

Thanks in advance,

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marcnath
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Posts: 5843
Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Dependant ILR

Post by marcnath » Sun Jan 27, 2019 6:04 am

tier1entrepreneur-A wrote:
Sat Jan 26, 2019 11:34 pm
marcnath wrote:
Sat Jan 26, 2019 11:03 pm
tier1entrepreneur-A wrote:
Sat Jan 26, 2019 9:29 pm
HI team,

Does tier 1 entrepreneur dependant must be staying for 5 years as tier 1 entrepreneur dependant before applying for ILR, or the qualified 5 years can be mixed between dependant under non point based work visa and dependant unter PBS - Tier 1 ?

Thanks in advance.
It can be a combination of any dependant visa, but not work visa
Thanks marcnath for your reply, it's much appreciated,

That will be great,

So in my dependant case, They can have 8 months as dependants under non point based visa, and then 4 years and 4 months as a dependants under Tier 1 entrepreneur visa,

Have you got any reference for that, that will be really helpful.

Thanks in advance,
Which was the non point work visa ?

The relevant clause is 319E(d)(ii)(c), which states:

(c) have spent the remainder of the 5 year period, where applicable, with leave as the spouse or civil partner, unmarried or same-sex partner of that person at a time when that person had leave under another category of these Rules,
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Re: Dependant ILR

Post by tier1entrepreneur-A » Sun Jan 27, 2019 9:19 am

marcnath wrote:
Sun Jan 27, 2019 6:04 am

Which was the non point work visa ?

The relevant clause is 319E(d)(ii)(c), which states:

(c) have spent the remainder of the 5 year period, where applicable, with leave as the spouse or civil partner, unmarried or same-sex partner of that person at a time when that person had leave under another category of these Rules,
Thanks marcnath,

My wife and kids dependant visa was under the following category:

Work
Dependants more than 6 Months

My work visa was " Work, Non point based, Offshore worker".

Do you think it still ok for them to combined both stay periods?

Thanks in advance.

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marcnath
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Posts: 5843
Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Dependant ILR

Post by marcnath » Sun Jan 27, 2019 9:32 am

tier1entrepreneur-A wrote:
Sun Jan 27, 2019 9:19 am
marcnath wrote:
Sun Jan 27, 2019 6:04 am

Which was the non point work visa ?

The relevant clause is 319E(d)(ii)(c), which states:

(c) have spent the remainder of the 5 year period, where applicable, with leave as the spouse or civil partner, unmarried or same-sex partner of that person at a time when that person had leave under another category of these Rules,
Thanks marcnath,

My wife and kids dependant visa was under the following category:

Work
Dependants more than 6 Months

My work visa was " Work, Non point based, Offshore worker".

Do you think it still ok for them to combined both stay periods?

Thanks in advance.
There are no continuous stay criteria for kids, so their visa is irrelevant.

I am not absolutely clear if the off shore worker visa falls under the immigration rules. It has to be in order for that dependant time to be counted. I'll try and check that but maybe someone else can reply in the meanwhile.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Re: Dependant ILR

Post by tier1entrepreneur-A » Sun Jan 27, 2019 9:55 am

marcnath wrote:
Sun Jan 27, 2019 9:32 am
tier1entrepreneur-A wrote: Thanks marcnath,

My wife and kids dependant visa was under the following category:

Work
Dependants more than 6 Months

My work visa was " Work, Non point based, Offshore worker".

Do you think it still ok for them to combined both stay periods?

Thanks in advance.
There are no continuous stay criteria for kids, so their visa is irrelevant.

I am not absolutely clear if the off shore worker visa falls under the immigration rules. It has to be in order for that dependant time to be counted. I'll try and check that but maybe someone else can reply in the meanwhile.

Thanks marcnath, really much appropriated,

For myself, offshore worker stay period doesn't count toward the qualified period for ILR,

But I'm wonder if for wife and kids, it all classified as dependent visa, and they have switched within the UL between the first visa and the second one as both dependant visa.

WRT kids, you have mentioned that no continuous stay criteria for kids, does this mean that once I receive my ILR under the 5 year rout or the 3 year rout (accelerated rout) I will be able to apply for them for ILR doesn't matter how many days they stayed in the UK?, and only my wife who needs to stay for 5 years to apply for ILR with max 180 days absence in any 12 month period (as per 8th Jan 2018 update)

Looking forward to hearing from you.

Thanks in advance.

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marcnath
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Posts: 5843
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Location: Milton Keynes

Re: Dependant ILR

Post by marcnath » Sun Jan 27, 2019 10:21 am

tier1entrepreneur-A wrote:
Sun Jan 27, 2019 9:55 am
marcnath wrote:
Sun Jan 27, 2019 9:32 am
tier1entrepreneur-A wrote: Thanks marcnath,

My wife and kids dependant visa was under the following category:

Work
Dependants more than 6 Months

My work visa was " Work, Non point based, Offshore worker".

Do you think it still ok for them to combined both stay periods?

Thanks in advance.
There are no continuous stay criteria for kids, so their visa is irrelevant.

I am not absolutely clear if the off shore worker visa falls under the immigration rules. It has to be in order for that dependant time to be counted. I'll try and check that but maybe someone else can reply in the meanwhile.

Thanks marcnath, really much appropriated,

For myself, offshore worker stay period doesn't count toward the qualified period for ILR,

But I'm wonder if for wife and kids, it all classified as dependent visa, and they have switched within the UL between the first visa and the second one as both dependant visa.

WRT kids, you have mentioned that no continuous stay criteria for kids, does this mean that once I receive my ILR under the 5 year rout or the 3 year rout (accelerated rout) I will be able to apply for them for ILR doesn't matter how many days they stayed in the UK?, and only my wife who needs to stay for 5 years to apply for ILR with max 180 days absence in any 12 month period (as per 8th Jan 2018 update)

Looking forward to hearing from you.

Thanks in advance.
Having looked into it further, I find that>

Subject to normal visa requirements, off-shore workers are allowed to live in the United Kingdom during their shore leave outside the immigration rules. Their dependants are also exceptionally allowed to base themselves in the United Kingdom.

It appears that that "visa" is outside immigration rules, so it would not count towards the five years for the dependants. Sorry about that.

While there is no continuous stay requirement for children, the minimum requirement is that both parents have to have ILR or be applying for ILR. So, in effect, they only qualify when your partner does. There are no absence criteria for kids.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Re: Dependant ILR

Post by tier1entrepreneur-A » Sun Jan 27, 2019 10:35 am

marcnath wrote:
Sun Jan 27, 2019 10:21 am

Having looked into it further, I find that>

Subject to normal visa requirements, off-shore workers are allowed to live in the United Kingdom during their shore leave outside the immigration rules. Their dependants are also exceptionally allowed to base themselves in the United Kingdom.

It appears that that "visa" is outside immigration rules, so it would not count towards the five years for the dependants. Sorry about that.

While there is no continuous stay requirement for children, the minimum requirement is that both parents have to have ILR or be applying for ILR. So, in effect, they only qualify when your partner does. There are no absence criteria for kids.

Thanks marcnath for your valuable efforts and advice, it' really much appreciated.

All noted.

Have a good day.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Tue Mar 05, 2019 5:35 am

Hi Team,

I have recognised that a full time employee payslips have "Basic salary" = £1700 monthly written on his payslips instead of hours and hourly rate

What I will need to do when applying for extension?

Do I will need to ask the accountant to reprint the payslips with the contracted hours and hourly rate?

Or

I will use the current payslips and will add his contract with my extension application?

Or

I will just fill the hourly rate on the application and list that he is working full time?

Or

Something else

Looking forward to hearing from you,

Thanks in advance.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Employee Payslips

Post by tier1entrepreneur-A » Tue Mar 05, 2019 8:55 am

Hi Team,

I have recognised that a full time employee payslips have "Basic salary" = £1700 monthly written on his payslips instead of hours and hourly rate

What I will need to do when applying for extension?

Do I will need to ask the accountant to reprint the payslips with the contracted hours and hourly rate?

Or

I will use the current payslips and will add his contract with my extension application?

Or

I will just fill the hourly rate on the application and list that he is working full time?

Or

Something else

Looking forward to hearing from you,

Thanks in advance.

User avatar
marcnath
Moderator
Posts: 5843
Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Employee Payslips

Post by marcnath » Tue Mar 05, 2019 9:45 am

tier1entrepreneur-A wrote:
Tue Mar 05, 2019 8:55 am
Hi Team,

I have recognised that a full time employee payslips have "Basic salary" = £1700 monthly written on his payslips instead of hours and hourly rate

What I will need to do when applying for extension?

Do I will need to ask the accountant to reprint the payslips with the contracted hours and hourly rate?

Or

I will use the current payslips and will add his contract with my extension application?

Or

I will just fill the hourly rate on the application and list that he is working full time?

Or

Something else

Looking forward to hearing from you,

Thanks in advance.
option 3
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

tier1entrepreneur-A
Member
Posts: 141
Joined: Mon Dec 25, 2017 2:08 pm

Employee in a Maternity leave

Post by tier1entrepreneur-A » Fri Apr 26, 2019 12:20 am

Hi Team,

One of my employee have been working with me for 6 months and then she give birth, so she start receiving MA from the government, and the salary from my company side equal zero,

At the moment, she had been with my company for 12 months, 6 of them receiving salary and the last 6 with no salary (zero working hours as she are not allowed to work while receiving MA) as she is receiving MA from the government,

The accountant still preparing payslip for her monthly, and her record still the same with zero salary on the monthly full payment submission (FPS) submitted monthly (until now) to HMRC,

My question is:

Does she will be classified by HO the she have been working for the 12 months?, or they will only classified her to be working for the first 6 months (which she earned salary on them and with over 30hrs work per week working hours)?

I couldn't have an answer for this, and the accountant doesn't know,

Looking forward for your valuable advice,

Thanks in advance.

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