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Employee Requirements

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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Aaina
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Re: Employee Requirements

Post by Aaina » Mon Aug 03, 2020 3:39 pm

Zimba wrote:
Thu Jul 30, 2020 1:50 pm
You are reading it incorrectly. Each part must be read separately
Thank you Zimba

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by marcnath » Mon Aug 10, 2020 11:30 am

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
There is no way I can give any concrete answer or any advice. I can only do my best to interpret HO's guidelines with my own understanding.

As I replied earlier, I think it is highly probable HO will accept your arguments/explanations.

But note that a few things have not changed - HO has only agreed to accept that you can combine JOBS that have not completed 12 months each. I can't say whether Employee 3 and 4 were doing the same job. If they were doing the same job, then the the total number of months that the JOB existed is still only 4 months.
If they were doing different JOBS then there is an argument to use the disruption effect to claim it is 6 months.
The way HO has been primarily defining whether it is the same job or different job has been by how the applicant fills out the Job table.

So, bottom line, this may be acceptable but there are enough loopholes for HO to refuse. My personal opinion is that HO will still be looking at all different aspects of the application and this alone would not be a reason for refusal. But if there are other genuineness concerns, then this will also become an issue.
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.

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by marcnath » Sat Sep 26, 2020 11:21 am

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
The current approach is ok.

Ask the accountant to mention the name in the Notes to the accounts
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.

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Re: Employee Requirements

Post by Aaina » Sat Sep 26, 2020 4:23 pm

Thank you so much Marcnath:-)

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Re: 200K investment

Post by zCIO » Sun Oct 04, 2020 1:45 pm

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.
thank you for sharing your information.. really apprecaited. Can you mention the business/industry you established and had a good sales volume with little expense?

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by marcnath » Wed Oct 28, 2020 10:09 pm

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
No, not really
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.

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Re: Employee Requirements

Post by Aaina » Thu Oct 29, 2020 9:02 am

Okay Thanks ever so much :-)

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by marcnath » Thu Oct 29, 2020 2:35 pm

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
They can't unless the payslips have some indication of that. So you should just add that into the cover letter.
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.

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Re: Employee Requirements

Post by Aaina » Thu Oct 29, 2020 2:37 pm

Okay sure, Thanks ever so much.

Regards
Aaina

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by zimba » Thu Oct 29, 2020 5:02 pm

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
That is rubbish
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

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Re: Employee Requirements

Post by Aaina » Thu Oct 29, 2020 5:58 pm

Okay, not hiring him:-) I was hoping someone could just check the documents for that extra peace of mind... Phew! Thanks

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by marcnath » Fri Oct 30, 2020 11:29 am

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
That is not a mandatory requirement. It is one of a few options. Others are much easier.
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.

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by marcnath » Fri Oct 30, 2020 12:18 pm

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
Not sure where you are getting this from? Can you copy and paste the exact section from the guidance or point to the page number/section in the guidance which states this?
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.

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Re: Employee Requirements

Post by Aaina » 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

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Re: Employee Requirements

Post by Aaina » Sun Nov 01, 2020 11:43 am

Hi,

Re the business bank account statements to be submitted - do they need to be for the entire three years?

Thanks
Aaina

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Re: Employee Requirements

Post by marcnath » Sun Nov 01, 2020 2:05 pm

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
You seem to have missed the OR, as highlighted above.

You just need one bank statement
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.

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Re: Employee Requirements

Post by Aaina » 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?

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Re: Employee Requirements

Post by marcnath » Sun Nov 01, 2020 5:01 pm

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?
It does not specify - any month 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.

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