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Tier 1 Entrepreneur Extension Director 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

goodlk4u
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Tier 1 Entrepreneur Extension Director Loan

Post by goodlk4u » Tue Jun 14, 2016 2:25 pm

hi

as tier 1 entrepreneur extension i transferred 50,000 from my personal to business account by my name showing Investment invested 50k in one year my question is about director loan..my 3 years accounts mentioned directors loan under the CREDITORS: Amounts falling due after more than one year
my question is do i need director loan agreement or not...

Thanks..

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Zimba
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Zimba » Tue Jun 14, 2016 2:30 pm

You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

paru.org
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by paru.org » Tue Jun 14, 2016 6:40 pm

zimba88 wrote:You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.
hi zimba
i tf amount £39k from my personal to buz acc and
£11349.30 directly to my business acc transferred from india from my personal indian acc
(so total £ 50349.30)
so i want to ask
is tf from my indian overseas ac direct to my buz acc fine ??

also secondly under other creditors section in my accounts amount showing as £50,446 so differ from loan amount by £96.70 . is that fine???
i have asked acc to put my name in accounts under notes after ur advice.
Pls clarify above 2, appreciate ur time!!!
thx zimba

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Zimba
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Zimba » Wed Jun 15, 2016 9:36 am

i tf amount £39k from my personal to buz acc and
£11349.30 directly to my business acc transferred from india from my personal indian acc
(so total £ 50349.30)
so i want to ask
is tf from my indian overseas ac direct to my buz acc fine ??
Yes, as long as your name shows in the business bank statements
also secondly under other creditors section in my accounts amount showing as £50,446 so differ from loan amount by £96.70 . is that fine???
I suggest you to have the exact amount as shown in the bank statements. Makes your life easier
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

goodlk4u
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by goodlk4u » Wed Jun 15, 2016 12:11 pm

As per my understanding, can anyone answer the below question, so I am not missing anything for my application.
• 50k Money transfer from Personal to business account (first year accounts shows Director Loan within one year under -other creditors)
• First year around £500 used for the personal expenses
• Over three year 55k have been spent by business to buy assets / machine plant by business and director’s loan shown in accounts. (director loan over one year shown in last year accounts under – other creditor)

Q1: 50k are showing in business account transferred with my name but however £500 was taken out only in first year whereas overall three year additional 5k. This 5k doesnt have visibility in business account but in Accounts it shows 55k director;s loan.Is that an issue?
Q2: Is director loan will meaningful by HO whereas my business have already spent 55k more than requirement is?
Q3: Business director paid one month salary to employee by cash whereas RTI & HMRC records were paid via business account. Will this be an issue or do I have to provide any proof for that?

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Zimba
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Zimba » Wed Jun 15, 2016 12:25 pm

Q1: 50k are showing in business account transferred with my name but however £500 was taken out only in first year whereas overall three year additional 5k. This 5k doesnt have visibility in business account but in Accounts it shows 55k director;s loan.Is that an issue?
No
Q2: Is director loan will meaningful by HO whereas my business have already spent 55k more than requirement is?
I do not understand what you mean here

Q3: Business director paid one month salary to employee by cash whereas RTI & HMRC records were paid via business account. Will this be an issue or do I have to provide any proof for that?
You need to provide payslips and FPS for all salary payments
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

goodlk4u
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by goodlk4u » Wed Jun 15, 2016 1:04 pm

Q2: My business have spent 55k on assets (plant machinery ) that guarantee funds has been invested by the business that were transferred by director and now cannot be taken out by the director. Do i still need to send director loan agreement with my application to Home office?

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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Zimba » Wed Jun 15, 2016 1:15 pm

goodlk4u wrote:Q2: My business have spent 55k on assets (plant machinery ) that guarantee funds has been invested by the business that were transferred by director and now cannot be taken out by the director. Do i still need to send director loan agreement with my application to Home office?
Yes, it is irrelevant that you spent it. You must supply ALL the required documents.
Also be aware that merely investing in assets is seen as a big red flag and in many case is not allowed. Expect scrutiny by HO during your extension
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

goodlk4u
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Re: Tier 1 Entrepreneur Extension

Post by goodlk4u » Wed Jun 15, 2016 2:12 pm

i m confused about investment..? is it investment mean purchase equipment or machinery or just transfer money in business account is call investment..?

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Zimba
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Re: Tier 1 Entrepreneur Extension

Post by Zimba » Wed Jun 15, 2016 3:34 pm

goodlk4u wrote:i m confused about investment..? is it investment mean purchase equipment or machinery or just transfer money in business account is call investment..?
When you transfer the money to your business to be spent in running and growing of your business and paying for business expenses. You need to submit specific documents to prove this as given in the guide.
It all depends on how much you spent, what is your business doing and what are the expenses. Purchasing machinery or office is not business expenses but assets. They are also viewed differently from tax point of view: https://www.gov.uk/capital-allowances/overview
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goodlk4u
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Re: Tier 1 Entrepreneur Extension Job Creation

Post by goodlk4u » Thu Jun 16, 2016 6:28 am

hi

i m pre April 2014 roue i have one employee who works 23 months still continue and the other works 6 months after left ..after replace other one who works 4 months and still continue..

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Re: Tier 1 Entrepreneur Extension Accounts submission late

Post by goodlk4u » Thu Jun 16, 2016 6:36 am

i submit my account now my accountant extend the date of submission ..is any problem..?

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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Atif786 » Thu Jun 16, 2016 11:56 pm

zimba88 wrote:You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.
Hi Zimba,
my tier 1 entrepreneur is due for extension next year, my question is regarding transferring funds from personal accounts to Business account, i have both my personal and business account in Natwest bank and last year on 20th April 2015 i trasfered 20k from my personal to businees using chaps payment method with reference director's loan but couldn't transfer remaining 30k the same day there was alimit of 20k per day, so the next day i made the internal payment from my personal account to business account using an option transfer funds and managed to transfer 20 and 10k , but when i look at my parsonal bank statment now, the personal one with first payment of 20k shows my business name but the 2 subsequent payments of 20k and 10k only shows my business account number the funds transferred to but not business name as they were internally transferred where you don't get an option to give reference , contrary on the business statement for the first transaction it shows my name with reference as director's loan but the last 2 transactions of 20k and 10k show my personal account number but not my name.
i am a bit apprehensive about the situation now as HO asking for readily proof of investment and they way they are refusing the application on such small issues, i am wondering they might say that only 20k invested as remaining transactions don't show my name however both the statements have relevant account numbers
kindly advice me, if it a sticky wicked situation for me..
your reply is hughly appreciated
Thnaks in advance
Atif

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Zimba
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Zimba » Fri Jun 17, 2016 10:33 am

Provide both the relevant personal and business bank statements and highlight each transaction. They can clearly see that it came from your personal account to the business. You should not face any issues
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

Atif786
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Atif786 » Fri Jun 17, 2016 12:48 pm

Hi Zimba,
Thanks for the reply, I hope there isn't such requirement that my name should appear on bank statement .
I was only worried that one transaction has my name & ref as director load but the last 2 don't so Ho might get confused
Atif

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Re: Tier 1 Entrepreneur Extension Director Loan

Post by ishfaqsangra » Sun Jun 19, 2016 2:07 pm

No need for name.provide both personal and business account statemenrs.they did not ask for name.but should be identifiable so both personal and business account will suffice.

paru.org
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by paru.org » Fri Aug 26, 2016 10:23 pm

zimba88 wrote:
i tf amount £39k from my personal to buz acc and
£11349.30 directly to my business acc transferred from india from my personal indian acc
(so total £ 50349.30)
so i want to ask
is tf from my indian overseas ac direct to my buz acc fine ??
Yes, as long as your name shows in the business bank statements
also secondly under other creditors section in my accounts amount showing as £50,446 so differ from loan amount by £96.70 . is that fine???
I suggest you to have the exact amount as shown in the bank statements. Makes your life easier
hi zimba
is accountant letter to verify that 2 posts have been created is mandatory?

plz reply

paru.org
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by paru.org » Sat Aug 27, 2016 12:14 am

zimba88 wrote:You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.
zimba!!!
If you have made the investment in the form of a director’s loan, it must be shown in both the relevant set of financial accounts provided and through readily identifiable transactions in the applicant’s business bank statement(s).

question: can i use downloaded statements from online banking which shows transaction but not my name on personal bank statement or do i need to get those stamped from bank if downloaded or
theses need to be originals??
i have downloaded the statements from online bankng with those particular entries which shows dLoan only,

thx

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Zimba
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by Zimba » Tue Aug 30, 2016 9:58 am

paru.org wrote: question: can i use downloaded statements from online banking which shows transaction but not my name on personal bank statement or do i need to get those stamped from bank if downloaded or
theses need to be originals??
i have downloaded the statements from online bankng with those particular entries which shows dLoan only,
thx
Bank statements must be original.
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

paru.org
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Re: Tier 1 Entrepreneur Extension Director Loan

Post by paru.org » Tue Aug 30, 2016 8:58 pm

zimba88 wrote:
paru.org wrote: question: can i use downloaded statements from online banking which shows transaction but not my name on personal bank statement or do i need to get those stamped from bank if downloaded or
theses need to be originals??
i have downloaded the statements from online bankng with those particular entries which shows dLoan only,
thx
Bank statements must be original.
thx zimba
is accountant letter to verify that 2 posts have been created is mandatory?

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