Tier 1 UK Visa Extension

[Kiatchai Lim]

I’m about to extend my Tier 1 entrepreneur investor visa, but because of the absence of PAYE record going back 12 months prior to my investment in the company that was acquired a few months earlier - chiefly because the previous owner has been anything but cooperative, thus far; so, with this in view, the submission of my visa application without this piece of employment record would jeopardize my visa extension as the lack thereof essentially renders it a non-compliance issue.
As it isn’t in the new owner’s gift to obtain this important document, I’m not certain how we could explain this to the HO, not least this is clearly an issue that is well beyond our control.
Should we be able to pull out all the stops to make the previous owner play ball, this PAYE record may however fail to indicate a net increase in job creations - as specifically required under Tier1 - against the backdrop that they are two separate companies under different management. I’m now in a perplexing quandary over this - not knowing how to get around this difficult conundrum - and need to ascertain whether under such circumstance the HO may be duly sympathetic, so much so that they consider the two jobs created under the new owner suffices to award me the required points?

[marcnath]

I’m about to extend my Tier 1 entrepreneur investor visa, but because of the absence of PAYE record going back 12 months prior to my investment in the company that was acquired a few months earlier - chiefly because the previous owner has been anything but cooperative, thus far; so, with this in view, the submission of my visa application without this piece of employment record would jeopardize my visa extension as the lack thereof essentially renders it a non-compliance issue.
As it isn’t in the new owner’s gift to obtain this important document, I’m not certain how we could explain this to the HO, not least this is clearly an issue that is well beyond our control.
Should we be able to pull out all the stops to make the previous owner play ball, this PAYE record may however fail to indicate a net increase in job creations - as specifically required under Tier1 - against the backdrop that they are two separate companies under different management. I’m now in a perplexing quandary over this - not knowing how to get around this difficult conundrum - and need to ascertain whether under such circumstance the HO may be duly sympathetic, so much so that they consider the two jobs created under the new owner suffices to award me the required points?

I don't think you can expect any sympathy from HO, I am sorry to say.

Why have you waited until your extension is due to start looking at these ?

In the first place, as a buyer you would have been able to demand the records as part of the purchase. There are legal obligations on you to keep old records, so it was essential that you would have had those documents anyway irrespective of immigration requirements.

Given that you did not do that (clearly poor advice by your lawyer), you may still be able to get the PAYE records from the accountant who was handling it or maybe even from HMRC directly. Have you tried either ?

Then you have the second problem of not having a net increase of jobs. The Net increase is not clearly defined in the immigration rules, so I think there may be some leeway. But, if you don't have the information you can't make the argument. But simply creating two new jobs will in itself not be accepted.

[Kiatchai Lim]

I should have categorically pointed out that my investment was merely in the form of loan extension to the party acquiring the business in question. Make no mistake about it, because I wasn’t the new owner in that acquisition deal any ability to obtain PAYE of the past 12 months prior to the purchase could not have been in my gift. In truth, HMRC might be the channel through which such document could be obtained and collated, but if the new owner had created two new jobs as strictly required under Entrepreneur Tier-1, this however may not show a net increase based on the previous 12-month period of employment record under the old management. How would the HO view this two new jobs creation, inquisitively - as undertaken under job creation compliance - under the new ownership? Needless to say, staff management/employment varies from company to company. What had transpired was that in the space of six to nine months after joining on board as a director, two new jobs have been created as strictly required under Tier 1!

[marcnath]

I should have categorically pointed out that my investment was merely in the form of loan extension to the party acquiring the business in question. Make no mistake about it, because I wasn’t the new owner in that acquisition deal any ability to obtain PAYE of the past 12 months prior to the purchase could not have been in my gift. In truth, HMRC might be the channel through which such document could be obtained and collated, but if the new owner had created two new jobs as strictly required under Entrepreneur Tier-1, this however may not show a net increase based on the previous 12-month period of employment record under the old management. How would the HO view this two new jobs creation, inquisitively - as undertaken under job creation compliance - under the new ownership? Needless to say, staff management/employment varies from company to company. What had transpired was that in the space of six to nine months after joining on board as a director, two new jobs have been created as strictly required under Tier 1!

I am sorry but your post is quite confusing.
So, from your post, it appears you lent some money to a third party, who then used that money to acquire the business.
Did I get that right ?

If that is the case, that would not be considered an investment under the Tier 1 rules.

Are you now the owner of the business or just the Director ?

Either way, if the business had employees before you became a Director, HO will expect to see a net increase in jobs, so two more jobs than the business had before your joined.

Unless you are very clear in the timelines, the jobs that were created, etc. I can't even comment if you have some leeway.

As it stands, it doesn't like you have.

[Kiatchai Lim]

Sorry for any confusion. My investment was in the form of Directors’ loan - unsecured and subordinate in favor of third party creditors. The company of which I’m a director had acquired a business a few months prior to my investment (loan extension). No sooner had the purchase deal been consummated than the management changed. Two new full time jobs were created, and would have existed at least 12 months prior to extending my visa.
I hope the above would suffice to address all the confusion.

[marcnath]

Sorry for any confusion. My investment was in the form of Directors’ loan - unsecured and subordinate in favor of third party creditors. The company of which I’m a director had acquired a business a few months prior to my investment (loan extension). No sooner had the purchase deal been consummated than the management changed. Two new full time jobs were created, and would have existed at least 12 months prior to extending my visa.
I hope the above would suffice to address all the confusion.

Does not really address all the confusion but it is clearer.

The 12 month record that you need is for the company you invested in, not the company that was acquired !!

Are you not able to get that ?

Not sure why you are concerned about the business that was acquired, especially given that it happened before your investment.

So again, it would be great to have exact dates - for example, few months can mean 2 months or 8 months-

[Kiatchai Lim]

I’m so much obliged for your prompt response. I ought to point out that under my circumstance there could be no 12-month PAYE record from the company I invested in, as its existence was merely 3 months old; so under Tier-1, I, as the applicant would be strictly required to obtain PAYE employment record/history of the old company that had hitherto owned the business prior to the acquisition/ take-over and, also, my investment/directorship.
Initially, I was anything but concerned about this 12-month PAYE prior to my investment as it shouldn’t have any relevance, but it is clearly stipulated that such document prior to my joining on board must be submitted along with my visa renewal, otherwise it would simply be rendered a non-compliance issue. I hope you will have caught my drift this time. Many thanks, all the same.

[Kiatchai Lim]

In essence, the HO will strictly require evidence of all payments made to employees and tax deducted in the 12-month period before my investment was made, and then the same evidence of all payments made to employees from that date of my investment/directorship until the date of my visa renewal, without which any net increase in employment or job creation could not be established.

[marcnath]

If the company was only 3 months old when you joined, then those three months pay documents is sufficient.
The net increase in jobs will be calculated based on those three months.