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Employee Requirements

Only for UK Tier 1 (Entrepreneur) points system

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

Aaina
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Joined: Tue Aug 01, 2017 9:06 pm

Re: Employee Requirements

Post by Aaina » Mon Aug 03, 2020 2:39 pm

Zimba wrote:
Thu Jul 30, 2020 12:50 pm
You are reading it incorrectly. Each part must be read separately
Thank you Zimba

Aaina
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Posts: 48
Joined: Tue Aug 01, 2017 9:06 pm

Re: Employee Requirements

Post by Aaina » Mon Aug 03, 2020 3:52 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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marcnath
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Joined: Tue Jul 03, 2012 2:27 pm
Location: Milton Keynes

Re: Employee Requirements

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

Aaina wrote:
Mon Aug 03, 2020 3:52 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.

Aaina
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Posts: 48
Joined: Tue Aug 01, 2017 9:06 pm

Re: Employee Requirements

Post by Aaina » Sat Sep 26, 2020 7:57 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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marcnath
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Location: Milton Keynes

Re: Employee Requirements

Post by marcnath » Sat Sep 26, 2020 10:21 am

Aaina wrote:
Sat Sep 26, 2020 7:57 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.

Aaina
Newbie
Posts: 48
Joined: Tue Aug 01, 2017 9:06 pm

Re: Employee Requirements

Post by Aaina » Sat Sep 26, 2020 3:23 pm

Thank you so much Marcnath:-)

zCIO
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Joined: Sun Oct 04, 2020 12:41 pm
Austria

Re: 200K investment

Post by zCIO » Sun Oct 04, 2020 12:45 pm

CULLINAN wrote:
Sat Jul 20, 2019 12:43 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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