Tier 1 extension stage questions

[Tier1Anon]

Hello,

I had my extension approved earlier this year but have been building the business in another direction with extended investment into the business above the £50k route I am under but I have not had staff on payroll for the past 6 months as I was getting a retail unit built to brand specs and am looking to hire this month forward. Is this going to be a problem and how does this reflect on the genuine entrepreneur test?
Anyone else been in this situation and how did it impact the ILR application. there is still 19 months left till visa expires. I know before extension staff have to be in place minimum 12 months to hand but if it is not continued after visa is issued then what happens? Staff will be in place again well before the 12 months mark, ideally it'll be 18 months with staff on payroll for the next application. I'm just worried about the 6 months gap and wonder if they will penalise for this.

[marcnath]

Hello,

I had my extension approved earlier this year but have been building the business in another direction with extended investment into the business above the £50k route I am under but I have not had staff on payroll for the past 6 months as I was getting a retail unit built to brand specs and am looking to hire this month forward. Is this going to be a problem and how does this reflect on the genuine entrepreneur test?
Anyone else been in this situation and how did it impact the ILR application. there is still 19 months left till visa expires. I know before extension staff have to be in place minimum 12 months to hand but if it is not continued after visa is issued then what happens? Staff will be in place again well before the 12 months mark, ideally it'll be 18 months with staff on payroll for the next application. I'm just worried about the 6 months gap and wonder if they will penalise for this.

I can't see any problem with that

[Tier1Anon]

It's confusing as the guidelines table says:


Table E: Job creation table
During
your
initial
leave
You are
applying for
your first
extension
application
During your extension
period of leave
You are applying
for a second
extension or 5
year settlement
application
You need to
create 2 jobs
which exist
for 12
months.
The Home
Office will
assess the
employment
activity from the
initial period of
leave.
You must: Maintain the 2 jobs
created in your initial leave for
a further 12 months, or
Create 2 more jobs which
exist for 12 months, if the 2
jobs created during your
initial period of leave have
ceased to exist.
The Home Office will
assess the
employment activity
from the extension
period of leave.

But section F says:
You have:
(a) established a new business or businesses that has or have created the
equivalent of at least 2 new full time jobs for settled workers,
or
(b) taken over or invested in an existing business or businesses and your
services or investment have resulted in a net increase in the employment
provided by the business or businesses for settled workers by creating the
equivalent of at least 2 new full time jobs for settled workers
The jobs must have existed for at least 12 months during your most recent
grant of leave or, where that leave was granted less than 12 months ago, for at
least the 12 months immediately before the date of your current application.

[marcnath]

It's confusing as the guidelines table says:


Table E: Job creation table
During
your
initial
leave
You are
applying for
your first
extension
application
During your extension
period of leave
You are applying
for a second
extension or 5
year settlement
application
You need to
create 2 jobs
which exist
for 12
months.
The Home
Office will
assess the
employment
activity from the
initial period of
leave.
You must: Maintain the 2 jobs
created in your initial leave for
a further 12 months, or
Create 2 more jobs which
exist for 12 months, if the 2
jobs created during your
initial period of leave have
ceased to exist.
The Home Office will
assess the
employment activity
from the extension
period of leave.

But section F says:
You have:
(a) established a new business or businesses that has or have created the
equivalent of at least 2 new full time jobs for settled workers,
or
(b) taken over or invested in an existing business or businesses and your
services or investment have resulted in a net increase in the employment
provided by the business or businesses for settled workers by creating the
equivalent of at least 2 new full time jobs for settled workers
The jobs must have existed for at least 12 months during your most recent
grant of leave or, where that leave was granted less than 12 months ago, for at
least the 12 months immediately before the date of your current application.

Not sure what the confusion is. It would be helpful if you explain what exactly you found confusing.

[Tier1Anon]

This is the confusion the table says:
[You must: Maintain the 2 jobs
created in your initial leave for
a further 12 months, or
Create 2 more jobs which
exist for 12 months, if the 2
jobs created during your
initial period of leave have
ceased to exist.
The Home Office will
assess the
employment activity
from the extension
period of leave.

And then it says
The jobs must have existed for at least 12 months during your most recent
grant of leave or, where that leave was granted less than 12 months ago, for at
least the 12 months immediately before the date of your current application.

So is it a case of 12 months no matter what and it's not an issue if there has been a a quiet period of no payroll or it is an issue as Home Office will assess the employment activity from the extension period of leave?

[marcnath]

This is the confusion the table says:
[You must: Maintain the 2 jobs
created in your initial leave for
a further 12 months, or
Create 2 more jobs which
exist for 12 months, if the 2
jobs created during your
initial period of leave have
ceased to exist.
The Home Office will
assess the
employment activity
from the extension
period of leave.

And then it says
The jobs must have existed for at least 12 months during your most recent
grant of leave or, where that leave was granted less than 12 months ago, for at
least the 12 months immediately before the date of your current application.

So is it a case of 12 months no matter what and it's not an issue if there has been a a quiet period of no payroll or it is an issue as Home Office will assess the employment activity from the extension period of leave?

Correct - which is why I answered to your initial question that there should be no problem

[Tier1Anon]

Thanks Marcnath.

[Tier1Anon]

Hello all,

I wanted to ask for those on the Tier 1 Entrepreneur visa route, did you/ were you able to draw a salary from the business that you are running on the visa? If so, does H/O comment on it, and if not how does H/O expect individuals to survive and live here?

Thank you!

[marcnath]

Hello all,

I wanted to ask for those on the Tier 1 Entrepreneur visa route, did you/ were you able to draw a salary from the business that you are running on the visa? If so, does H/O comment on it, and if not how does H/O expect individuals to survive and live here?

Thank you!

There are no problems with drawing a salary from your business. The restriction is only that you cannot use the money you invested to pay yourself.

As long as your business is generating sales, you can draw a salary up to the amount of sales in the business.

[Tier1Anon]

Thanks. And what if one were to take dividends instead? Any problems there?

[marcnath]

Thanks. And what if one were to take dividends instead? Any problems there?

Salary, dividends, car allowances on other means you find to take money out of the company for yourself are all part of remuneration. The rules do not allow for the investment money to be used for your remuneratiion.

[Tier1Anon]

Hello all,

Is it likely that HO will change rules for having EU employees as part of the candidates and how long will it remain after transition period? If employing Europeans, what do we have to provide and will it be an issue after Brexit?

Thanks!

[zimba]

Hello all,

Is it likely that HO will change rules for having EU employees as part of the candidates and how long will it remain after transition period? If employing Europeans, what do we have to provide and will it be an issue after Brexit?

Thanks!

No one knows. For now all arrangements and rules in place will remain the same until the end of the year. No changes after that are known or announced yet. Maybe things will be cleared up in April.

I am going to predict for now that EEA citizens with only pre-settled or settled status will be acceptable to keep/hire from next year. So I suggest to encourage your EEA employees to secure either their pre-settled or settled status under EU settlement scheme in the meantime.

[marcnath]

Hello all,

Is it likely that HO will change rules for having EU employees as part of the candidates and how long will it remain after transition period? If employing Europeans, what do we have to provide and will it be an issue after Brexit?

Thanks!

As Zimba said, it is not known.

But to add my own prediction, I would say they would accept anyone hired before the date of announcement of new rules as qualifying under the current rules.