Employee Requirements

Zimba wrote: ↑

Thu Jul 30, 2020 1:50 pm

You are reading it incorrectly. Each part must be read separately

Aaina wrote: ↑

Mon Aug 03, 2020 4:52 pm

Hi Marcnath,

Thanks for your reply. For job 2 which will be made up of the ones below:

Employee 3 was employed from May 2019 to July 2019 (3 months) after which he went on sick pay and was on SSP.
Employee 4 was employed from June 2019 to August 2019 (3 months)
Employee 5 has been employed from Sep 2019 to Feb 2019 (6 months) after which have been furloughed

I know you cited that there is an overlap and HO will question, but the aim was to have Employee 3 and Employee 5 (in ideal circumstance) but because employee 5 was furloughed due to Coronavirus, we are seeking employee 4's tenure to be added to make up the period. This does indicate that the job of employee 5 has been disrupted and hence we would like to use employee 4's data to meet the requirements to get an extension. If things had been all nice and normal we would have used Employee 3 + employee 5 as by May he would have completed 9 months..but he had to be furloughed after completing 6 months thereby giving us a shortage of 3 months. Disrpution does come into play? isnt it?

Thanks
Aaina

Aaina wrote: ↑

Sat Sep 26, 2020 8:57 am

Okay, Thanks Marcnath.

I have a few queries as I am getting conflicting advise from some people.

Background - The investment has been made in two companies, 150k in Company A which the father became director of within 3 months of getting his entrepreneur visa and the second one Company B is 55K but that has been started only in March this year.

- The two jobs have been created in Company A and none in Company B. Is that okay? Someone told me that we should have a job in company B as well.

- Company B will only have partial accounts when we submit for extension as it started in March this year and hoping to apply for extension in November time. Is submitting partial accounts an issue? or do they expect an annual compilation.

- Director loan - our accountant was saying that usually its mentioned in the letter by the accountant but I said to him that they need to indicate in the accounts as well, and he was a bit perplexed. Can someone guide me please where in accounts should I tell him to mention it.

Thanks
Aaina

CULLINAN wrote: ↑

Sat Jul 20, 2019 1:43 am

Wanted to share first hand experience:

I invested 200k in my company. Once the money hits your business account from your personal account the investment is done.

Having said that, the money should not be sitting there idle. As Zimba said, you will be scrutinised for genuineness and business activity as you have to pass the genuine entrepreneur test. As long as you have genuine activity, less or more, NOT necessarily you have to spend all the money.

I applied for my extension when I had only spent around 80k, applied for ILR when I had spent around 120k.. rest was still in the business bank account.

Also, I did withdraw minimum director salary through all 5 years and I did NOT top up. My investment was 200k and I took salary from the same amount. As long as the salary is justified e.g. someone withdrawing a salary of 100k a year will raise a red flag otherwise I dont see a problem with a director withdrawing salary.

Director and company are two different entities and the company has to pay for director’s salary to run the business. There seems to be an opinion that director cannot withdraw salary if the company is in loss and can only withdraw from the profit. My company was in loss all 5 years and I withdrew salary all 5 years and did NOT top up the 200k initial investment.

I was granted extension and ILR eventually.

Aaina wrote: ↑

Wed Oct 28, 2020 9:47 pm

Hi,

In terms of directors loan agreement, I have a query - for the second company which my dad started in March this year, he signed a DLA but since then the address of the company has changed as earlier during the formation the business and residential was the same and since then he has got an office space. Should he create a new DLA showing the new address? He is due to apply for his extension soon.

Thanks
Aaina

Aaina wrote: ↑

Thu Oct 29, 2020 1:42 pm

Another query please, some of the jobs we have created went on furlough but they are meeting the 12 month requirement. The application asks for the first date the employee started and if its continued, how would the home office distinguish between the furlough period and the months we are using for the job creation. thanks

Aaina wrote: ↑

Thu Oct 29, 2020 3:33 pm

Hi,

There is a solicitor I just spoke to who said we cant apply until a month before the visa expires ( visa expiry date is 20th Jan for my dad). I thought we could do anytime after 3 years and my dad has been here 3 years 1 month and is fulfilling the criterias.

Thanks
Aaina

Aaina wrote: ↑

Fri Oct 30, 2020 11:14 am

Hi,

The Tier 1 guide mentions that we need to get a letter from the bank saying that:

- A letter from Business Bank confirming you are signatory on the account, evidence to show business premises in the UK and that the business is subject to the UK taxation.

The manager in the bank said that they will be happy to write a letter but they are not authorised to write that "the business is subject to UK taxation"

Will this be an issue?
Obviously our business is based here and subject to UK taxation.. so why does the HO want something like thsi from the bank.

Thanks
Aaina

Aaina wrote: ↑

Fri Oct 30, 2020 11:42 am

Yes, You are right, the first one is:
i) printout of the companies house documents
ii) HMRC confirmation or equivalent evidence that the company is registered for corporation tax
iii) letter from the bank detailed in my previous post.

I thought we have to provide all three? as it doesnt say "OR" in their guidance anywhere. Thanks

Aaina wrote: ↑

Fri Oct 30, 2020 12:24 pm

Hi Marcnath,

https://assets.publishing.service.gov.u ... V_1019.pdf

Page 27:
Apologies, I just realised they have updated the last point as I was reading from an old print out of the guidance but this also doesn't say OR anywhere.

b) If you are a director of a UK company or member of a UK partnership, you must provide:
(i) printouts of Companies House documents, dated no earlier than three months
before the date of the application, showing all of the following:
(1) the address of the registered office in the UK, or head office in the UK if it
has no registered office,
(2) your name, as a director or member,
(3) the date of your appointment as a director or member, and
(4) that the business is actively trading (not dormant, struck-off, dissolved or in
liquidation),
(ii) HM Revenue & Customs’ confirmation or equivalent evidence that the company is
registered for corporation tax (if you are a director of the company), or that you are
making tax returns within the self-assessment tax system (if you are a member of a
partnership),
and
(iii) a business bank statement from a UK account which shows business transactions
or a letter from the UK bank in question on its headed paper, confirming that the
company or partnership has a bank account, that you are a signatory of that account,
and that the company or partnership uses that account for the purposes of their
business

Aaina wrote: ↑

Sun Nov 01, 2020 4:50 pm

Oh yes, Thanks for pointing it out.

When you say one bank statement - you mean just recent one month?