Is Employee Salary Considered as an Investment

Hi All,

I got two question, answers would be really appreciated.

1. Can i employee someone who is the dependent of a British Citizen, the person i would like to employee is not on ILR, He is having the visa as a Settled Dependent of the British Citizen, he has to be on that visa before he can apply for the ILR. So if i employee him will it be counted as the employment creation?

2. Is the Salary for the employee would be considered as the investment?

Answer's will be really Appreciated, Thanks in Advance.

Employee Salary is always a business expense.

Hi Naveed,

So can we count it as the Investment? Sorry for such a question, as i am from the I.T Background, so don't have much knowledge about business Terms.

Regards

Hi,

I am not an expert but you can not term employee salary as an investment directly. However, you may estimate and set aside a budgeted amount as future payroll salary for your business (depending on stage of life of your business) and that total amount could be a part of your investment. It is my personal opinion but check with immigration expert as well.

Yes, Naveed is right.

Employee salary and all other genuine business expenses are a part of investment.

Hope thats helps

You cannot employ dependent of british citizen for job creation purpose. The person should british / european passport or ILR VISA IN UK

muhammadaliabad wrote:You cannot employ dependent of british citizen for job creation purpose. The person should british / european passport or ILR VISA IN UK

Can someone please confirm if this is correct?

What about the dependent of an ILR holder? Does that count towards job creation ?

Hi Guys,
This is with reference to investment, i am on 50 k entrepreneur route, i being a director of my company have invested 50k into my business through director's loan agreement, i have transferred 50k from my personal account to business a year ago, and now my business would like to invest it further in order to expand the business, if i get a lease contract of 70k for 5 years with the deposit of 40k initial deposit and remaining 30k can be paid on monthly basis as rent , will it be considered as investment or running cost or expenses of the business, i have not been able to get a satisfactory answer by any of the solicitors and accountants on it yet.
all inputs are highly appreciable.
Regards

babylondoner wrote:

muhammadaliabad wrote:You cannot employ dependent of british citizen for job creation purpose. The person should british / european passport or ILR VISA IN UK

Can someone please confirm if this is correct?

What about the dependent of an ILR holder? Does that count towards job creation ?

Only the employment of a settled worked counts, settled means that someone has the right to be here indefinitely. So the employment of dependants or visa holders who do not have the right to be here indefinitely will NOT be accepted even if their leave permits them to be legally employed by you.

[quote="Entrepreneur9"]Yes, Naveed is right.

Employee salary and all other genuine business expenses are a part of investment.

Hope thats helps [/quote

HOW.....??? Kindly don't misguide applicants.

It is clearly a business' expenses as you earn you spend but it could be a silly idea to put your money for investment and pay them into their wages.
Investment money should be spent for like: buying a car but remember its insurance doesn't cover investment amount.paying for office equipment-computer -printer-stationery(though stationery can be included in business expenses)
buying some office crockery-microwave-kettle like stuff.Also IT related job can be included in investment.
Or if you know much better in line with Home Office rules for this,kindly note it down with some citation so the applicants can take advantage plus to have a well equipped response if ask about it ?????

Mr Legal wrote:

Entrepreneur9 wrote:Yes, Naveed is right.

Employee salary and all other genuine business expenses are a part of investment.

Hope thats helps

HOW.....??? Kindly don't misguide applicants.

It is clearly a business' expenses as you earn you spend but it could be a silly idea to put your money for investment and pay them into their wages.
Investment money should be spent for like: buying a car but remember its insurance doesn't cover investment amount.paying for office equipment-computer -printer-stationery(though stationery can be included in business expenses)
buying some office crockery-microwave-kettle like stuff.Also IT related job can be included in investment.
Or if you know much better in line with Home Office rules for this,kindly note it down with some citation so the applicants can take advantage plus to have a well equipped response if ask about it ?????

You are WRONG. Salary payments as well as tax payments are legally considered business expenses (excluding YOUR salary/remuneration) and can be paid from money you invest into your business. Home office guide and immigrations rules make NO such distinction that you are claiming. You also did not pay any attention to the definition of `investment and `spent` in the guide. Home office made it clear what is NOT considered spent/invested in your business:

For the purposes of the above, ‘invested’ or ‘spent’ by your business’ excludes spending on all of the following:
1) your own remuneration,
2) buying the business from a previous owner, where the money ultimately goes to that previous owner irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business you have bought. This applies regardless of whether the money is channelled through the business en route to the previous owner. For example, by means of you or your business purchasing ‘goodwill’ or other assets which were previously part of the business you have bought,
3) investing in businesses, other than those which you are running as self-employed or as a director,
and
4)any spending which is not directly for the purpose of establishing or running your own business or businesses