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Director's Loan agreement and Fund transfer

Only for UK Tier 1 (Entrepreneur) points system

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Tue Feb 13, 2018 7:18 am

tier1entrepreneur-A wrote:
Tue Feb 13, 2018 1:18 am
zimba88 wrote:
Tue Feb 13, 2018 1:04 am
They will not count towards your investment if you go via the director's loan option.
Thanks zimba88 for your reply, it's much appreciated,

I'm in the 200K route, and I intend to do my first investment on my company of £50K as a direcor's loan,

I thought that I could then re-transfer the £3K from my business bank account to my personal bank account, and I will upload all the receipts which will cover the £3k and all the details,

I see that you advice that this will not be possible the the £3k will not count for investment, and if I did like what I have mentioned above it will be counted as £47K instead of £50K,

Could you please confirm that my understanding above is correct?
Also could you please explain to me why? as I thought that as it all related to the business and within short period of opening the bank account/establish the company that could be acceptable,

Thanks in advance.
No, that should be ok.

As long as you have initially transferred 50K and then the business pays back 3K to you as expense reimbursement, it should be fine.
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
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Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Tue Feb 13, 2018 1:25 pm

marcnath wrote:
Tue Feb 13, 2018 7:18 am
tier1entrepreneur-A wrote:
Tue Feb 13, 2018 1:18 am
zimba88 wrote:
Tue Feb 13, 2018 1:04 am
They will not count towards your investment if you go via the director's loan option.
Thanks zimba88 for your reply, it's much appreciated,

I'm in the 200K route, and I intend to do my first investment on my company of £50K as a direcor's loan,

I thought that I could then re-transfer the £3K from my business bank account to my personal bank account, and I will upload all the receipts which will cover the £3k and all the details,

I see that you advice that this will not be possible the the £3k will not count for investment, and if I did like what I have mentioned above it will be counted as £47K instead of £50K,

Could you please confirm that my understanding above is correct?
Also could you please explain to me why? as I thought that as it all related to the business and within short period of opening the bank account/establish the company that could be acceptable,

Thanks in advance.
No, that should be ok.

As long as you have initially transferred 50K and then the business pays back 3K to you as expense reimbursement, it should be fine.

Many thanks for your confirmation, it's much appreciated,

FYI, I have registered the company in mid Jan 18 after obtained tier 1 visa early Jan 18,

On my bookkeeping record, which date i should record the expenses date on (i.e. date of actual spent from my personal bank account, or date of register the company, or date I transfer the money back from my business bank account to my personal bank account),

Also, do I will transfer them as a total of 3k or I need to transfer it as it is (separate transaction or each expenditure)?

Thanks in advance,

Best Regards.

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Tue Feb 13, 2018 2:46 pm

Discuss these with your accountant. It is not an immigration related matter.
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
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Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Tue Feb 13, 2018 3:35 pm

marcnath wrote:
Tue Feb 13, 2018 2:46 pm
Discuss these with your accountant. It is not an immigration related matter.
Thanks marcnath,

I thought that this can be something related to Tier 1 visa extension requirements.

tier1entrepreneur-A
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Director salary

Post by tier1entrepreneur-A » Sat Feb 17, 2018 1:12 am

Hi Team,

I have established my limited company, and I intend to take salary from my company as an employee performing consultation services, the money I will take will be from the business income and not from the money I have invested on the company in form of director's loan,
i.e. Year 1,
I have a consulting company and I will invest 100k on the company, and then I get sales of 80K, I get paid during the year (monthly basis) a total of 12K (1K per month),

So end of year 1:

Cash in = 100K +80K=180K.
Cash out = Other Employee salary (30K) + Director salary (12k) + company expenses (18K)=60K.
End of the year profit= 80k-60k=20k

Could you please confirm that the above should be acceptable, or I should not get any payment from my limited company as a director/employee?

Thanks in advance,

Best Regards.

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marcnath
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Re: Director salary

Post by marcnath » Sat Feb 17, 2018 9:11 am

tier1entrepreneur-A wrote:
Sat Feb 17, 2018 1:12 am
Hi Team,

I have established my limited company, and I intend to take salary from my company as an employee performing consultation services, the money I will take will be from the business income and not from the money I have invested on the company in form of director's loan,
i.e. Year 1,
I have a consulting company and I will invest 100k on the company, and then I get sales of 80K, I get paid during the year (monthly basis) a total of 12K (1K per month),

So end of year 1:

Cash in = 100K +80K=180K.
Cash out = Other Employee salary (30K) + Director salary (12k) + company expenses (18K)=60K.
End of the year profit= 80k-60k=20k

Could you please confirm that the above should be acceptable, or I should not get any payment from my limited company as a director/employee?

Thanks in advance,

Best Regards.
You should no problems until your withdrawals (salary/dividends) exceed 80K in this example.
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
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Posts: 58
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Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Sat Feb 17, 2018 9:57 am

Many thanks for your reply, it's much appreciated,

In case the example become as below:

So end of year 1:

Cash in = 100K +50K=150K.
Cash out = Other Employee salary (30K) + Director salary (12k) + company expenses (18K)=60K.
End of the year profit= 50k-60k=-10k (loss),
Total money on the company bank account = 100k-10k = 90k,

Does the above will be acceptable?

Thanks in advance,

Best Regards.

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sat Feb 17, 2018 10:00 am

tier1entrepreneur-A wrote:
Sat Feb 17, 2018 9:57 am
Many thanks for your reply, it's much appreciated,

In case the example become as below:

So end of year 1:

Cash in = 100K +50K=150K.
Cash out = Other Employee salary (30K) + Director salary (12k) + company expenses (18K)=60K.
End of the year profit= 50k-60k=-10k (loss),
Total money on the company bank account = 100k-10k = 90k,

Does the above will be acceptable?

Thanks in advance,

Best Regards.
Sure - why do you think it wouldn't be ok ?
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
Junior Member
Posts: 58
Joined: Mon Dec 25, 2017 2:08 pm
Great Britain

Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Sat Feb 17, 2018 11:07 am

Thanks for your confirmation,

I thought it could be an issue if the business doesn't make enough profit to cover all business expenses including my salary, in which case I will use part of the investment (director's loan, i. e. 100k as per the example above) to cover the business loss (i.e. 10k as per the example above),

So I thought they may be looking at that time if I get paid any salary or not from my business,

Do you see that nothing to worry about on the above case?

Thanks in advance.

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marcnath
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Re: Director's Loan agreement and Fund transfer

Post by marcnath » Sat Feb 17, 2018 11:52 am

tier1entrepreneur-A wrote:
Sat Feb 17, 2018 11:07 am
Thanks for your confirmation,

I thought it could be an issue if the business doesn't make enough profit to cover all business expenses including my salary, in which case I will use part of the investment (director's loan, i. e. 100k as per the example above) to cover the business loss (i.e. 10k as per the example above),

So I thought they may be looking at that time if I get paid any salary or not from my business,

Do you see that nothing to worry about on the above case?

Thanks in advance.
Nothing to worry about
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
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Posts: 58
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Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Sat Feb 17, 2018 9:46 pm

Many thanks marcnath for your valuable advice, it's much appreciated,

Best Regards.

tier1entrepreneur-A
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Tier 1 Entrepreneur Dependant visa

Post by tier1entrepreneur-A » Sat Feb 24, 2018 12:51 am

Hi Team,

My wife and kids already still have a valid dependant visa on my pre Tier 1 visa, I will need to apply for them in the next few months for Tier 1 Entrepreneur dependant visa,

My question is:

With regarding to the documents required to be attached with their application it will be ONLY a copy of my visa/BRP plus a bank statement to cover the maintenance fund required (maintenance fund have been on my account for at least 90 days),

Do I need to submit any other documents related to the money or business?,

Thanks in advance,

Best Regards.

tier1entrepreneur-A
Junior Member
Posts: 58
Joined: Mon Dec 25, 2017 2:08 pm
Great Britain

Tier 1 Entrepreneur Dependant visa

Post by tier1entrepreneur-A » Sun Feb 25, 2018 1:38 am

Hi Team,

Any advice on the above?

Thanks in advance.

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bizman
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Re: Tier 1 Entrepreneur Dependant visa

Post by bizman » Sun Feb 25, 2018 4:58 pm

tier1entrepreneur-A wrote:
Sun Feb 25, 2018 1:38 am
Hi Team,

Any advice on the above?

Thanks in advance.
You need to add documents that will confirm you are still genuinely in business such as CAR, business statement of account etc to confirm you are genuinely in business. Also all other documents requested from the dependant application form.
Bizman

tier1entrepreneur-A
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Re: Tier 1 Entrepreneur Dependant visa

Post by tier1entrepreneur-A » Sun Feb 25, 2018 5:33 pm

bizman wrote:
Sun Feb 25, 2018 4:58 pm
tier1entrepreneur-A wrote:
Sun Feb 25, 2018 1:38 am
Hi Team,

Any advice on the above?

Thanks in advance.
You need to add documents that will confirm you are still genuinely in business such as CAR, business statement of account etc to confirm you are genuinely in business. Also all other documents requested from the dependant application form.
Thanks bizman,

I didn't transfer all the fund on that business (only 50K so far) due to I will invest the remaining balance later on another business, does this will have any effect?

Thanks in advance.

tier1entrepreneur-A
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Posts: 58
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Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Mon Feb 26, 2018 11:33 pm

Hi Team,

Any advice on the above?

Thanks in advance.

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marcnath
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Re: Tier 1 Entrepreneur Dependant visa

Post by marcnath » Tue Feb 27, 2018 9:38 am

tier1entrepreneur-A wrote:
Sat Feb 24, 2018 12:51 am
Hi Team,

My wife and kids already still have a valid dependant visa on my pre Tier 1 visa, I will need to apply for them in the next few months for Tier 1 Entrepreneur dependant visa,

My question is:

With regarding to the documents required to be attached with their application it will be ONLY a copy of my visa/BRP plus a bank statement to cover the maintenance fund required (maintenance fund have been on my account for at least 90 days),

Do I need to submit any other documents related to the money or business?,

Thanks in advance,

Best Regards.
There is no requirement to provide any documents regarding your business or money for your dependant's 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
Junior Member
Posts: 58
Joined: Mon Dec 25, 2017 2:08 pm
Great Britain

Re: Tier 1 Entrepreneur Dependant visa

Post by tier1entrepreneur-A » Tue Feb 27, 2018 7:21 pm

marcnath wrote:
Tue Feb 27, 2018 9:38 am
tier1entrepreneur-A wrote:
Sat Feb 24, 2018 12:51 am
Hi Team,

My wife and kids already still have a valid dependant visa on my pre Tier 1 visa, I will need to apply for them in the next few months for Tier 1 Entrepreneur dependant visa,

My question is:

With regarding to the documents required to be attached with their application it will be ONLY a copy of my visa/BRP plus a bank statement to cover the maintenance fund required (maintenance fund have been on my account for at least 90 days),

Do I need to submit any other documents related to the money or business?,

Thanks in advance,

Best Regards.
There is no requirement to provide any documents regarding your business or money for your dependant's visa

Many thanks marcnath for your clarification, it's much appreciated,

That will be great, just the three months maintenance fund for them (£1890 for each) in my bank account (in a UK or overseas bank account) along with a copy of my BRP and prove of relation (marriage certificate, kids birth certificate), are there any other documents required?

Thanks in advance.

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Re: Director's Loan agreement and Fund transfer

Post by kaps84 » Tue Feb 27, 2018 8:39 pm


Many thanks marcnath for your clarification, it's much appreciated,

That will be great, just the three months maintenance fund for them (£1890 for each) in my bank account (in a UK or overseas bank account) along with a copy of my BRP and prove of relation (marriage certificate, kids birth certificate), are there any other documents required?

Thanks in advance.
Since your dependents are already in UK with you, that's pretty much the required documents.

At most you can include a simple letter from your side confirming your address, your passport number, visa number etc. and stating that your wife and kid(s) were already your dependent and wish to extend their visa as a PBS dependent. This is just an idea, you can re-word. (Please not that such letter is not mandatory though). Just a suggestion as per personal experience.
-- Kaps84

tier1entrepreneur-A
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Re: Director's Loan agreement and Fund transfer

Post by tier1entrepreneur-A » Wed Feb 28, 2018 10:51 am

kaps84 wrote:
Tue Feb 27, 2018 8:39 pm

Many thanks marcnath for your clarification, it's much appreciated,

That will be great, just the three months maintenance fund for them (£1890 for each) in my bank account (in a UK or overseas bank account) along with a copy of my BRP and prove of relation (marriage certificate, kids birth certificate), are there any other documents required?

Thanks in advance.
Since your dependents are already in UK with you, that's pretty much the required documents.

At most you can include a simple letter from your side confirming your address, your passport number, visa number etc. and stating that your wife and kid(s) were already your dependent and wish to extend their visa as a PBS dependent. This is just an idea, you can re-word. (Please not that such letter is not mandatory though). Just a suggestion as per personal experience.
Many thanks kaps84 for your advices, it's much appreciated,

Best Regards.

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