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Director's loan

Only for UK Tier 1 (Entrepreneur) points system

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

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david justin
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Posts: 72
Joined: Wed Jun 19, 2013 6:45 pm

Difference between investment and expenses

Post by david justin » Thu Sep 21, 2017 4:56 pm

Hello everyone,
Could you please clarify the difference between money invested into a business and what is expenses.
Am a bit confused.
Thank you very much

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Zimba
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Re: Difference between investment and expenses

Post by Zimba » Thu Sep 21, 2017 6:03 pm

This topic has been discussed several times :!: So please search the forum

uk-tier-1-entrepreneur-visas/diff-betwe ... 39417.html
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

david justin
Junior Member
Posts: 72
Joined: Wed Jun 19, 2013 6:45 pm

Re: Difference between investment and expenses

Post by david justin » Thu Sep 21, 2017 7:19 pm

Hello Zimba,
Thanks for your prompt reply.
I have gone through the link you sent to me and I am still confused.
Please can you please clarify for me.
Am pleading.
Regards

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marcnath
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Location: Milton Keynes

Re: Difference between investment and expenses

Post by marcnath » Thu Sep 21, 2017 7:46 pm

david justin wrote:
Thu Sep 21, 2017 4:56 pm
Hello everyone,
Could you please clarify the difference between money invested into a business and what is expenses.
Am a bit confused.
Thank you very much
The question is one you should ask your accountant. In general, investment is money into the business and expense is money out of the business.

But I have a feeling you are not looking for then generic meaning.

Why don't you be more clear about what situation in your case are you confused about ?

Or is it something specific in the immigration rules or the guidance document that is confusing you ?
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.

david justin
Junior Member
Posts: 72
Joined: Wed Jun 19, 2013 6:45 pm

Re: Difference between investment and expenses

Post by david justin » Thu Sep 21, 2017 9:17 pm

Thank you so much macnirth,
I have a shop where I sell things.
I had to equip the shop with goods. Would that be counted as investment?
Regards

akap12
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Posts: 32
Joined: Tue May 23, 2017 1:23 am

Re: Difference between investment and expenses

Post by akap12 » Fri Sep 22, 2017 12:54 am

david justin wrote:
Thu Sep 21, 2017 9:17 pm
Thank you so much macnirth,
I have a shop where I sell things.
I had to equip the shop with goods. Would that be counted as investment?
Regards
As far as I know, if the money is made as a direct cash investment, meaning coming out from your own personal account or transferred to your business account and spent, it counts as investment.
If you are using money already generated from the business within the business account, it will just be a business spending which is deducted before taxes.

Talk you your account to better understand this.

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marcnath
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Re: Difference between investment and expenses

Post by marcnath » Fri Sep 22, 2017 6:00 am

akap12 wrote:
Fri Sep 22, 2017 12:54 am
david justin wrote:
Thu Sep 21, 2017 9:17 pm
Thank you so much macnirth,
I have a shop where I sell things.
I had to equip the shop with goods. Would that be counted as investment?
Regards
As far as I know, if the money is made as a direct cash investment, meaning coming out from your own personal account or transferred to your business account and spent, it counts as investment.
If you are using money already generated from the business within the business account, it will just be a business spending which is deducted before taxes.

Talk you your account to better understand this.
Yes, if you have put the money from your own funds, it should be considered as an investment.
However, the evidence required for investment as a Director loan requires actual evidence of funds transfer into the business account. There seems to be some leeway if it was done as part of setting up the business (maybe done before the bank account was set up).
But that requirement is not there for investment as share capital, so it is always possible to do it that way.
As akap12 pointed out, talk to your accountant
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.

david justin
Junior Member
Posts: 72
Joined: Wed Jun 19, 2013 6:45 pm

Re: Difference between investment and expenses

Post by david justin » Fri Sep 22, 2017 2:48 pm

Thank you so much for all your replies.
Very enlightening.
Another question is I am a soletrader, would director's loan be applicable in my situation when trying to prove investment.
Thank you all for your anticipated replies

david justin
Junior Member
Posts: 72
Joined: Wed Jun 19, 2013 6:45 pm

Director's loan

Post by david justin » Fri Sep 22, 2017 2:59 pm

Hello everyone,
Can bits and pieces of money from personal account into business account make up for Director's loan.
For instance transferring in smaller trenches rather than larger trenches
Thank you

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Zimba
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Re: Director's loan

Post by Zimba » Fri Sep 22, 2017 3:33 pm

Yes, have you read this : https://www.gov.uk/directors-loans ?
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

david justin
Junior Member
Posts: 72
Joined: Wed Jun 19, 2013 6:45 pm

Re: Director's loan

Post by david justin » Fri Sep 22, 2017 3:39 pm

Thank you so much zimba.
Very much appreciated.
You just saved a life.
Thank you

david justin
Junior Member
Posts: 72
Joined: Wed Jun 19, 2013 6:45 pm

Re: Director's loan

Post by david justin » Fri Sep 22, 2017 5:50 pm

Another question is I am a soletrader, would director's loan be applicable in my situation when trying to prove investment.
Thank you all for your anticipated replies

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