Query on Tier 1 Entrepreneur Extension

[mindthebusiness]

Hi,

I am new here and have a few questions about extending my current Tier 1 Entrepreneur Visa. My visa doesn't expire until 03/11/2013.

I applied about 2 years ago after my PSW visa expired with having a capital of £200k.

I have since set up two limited companies, one of which is consultancy work and another is a retail service business. The consultancy work provided was on contract basis and had recently terminated (2 years contract) and paid myself a salary and dividend through this limited company with some expenses claimed through the business i.e. hotel accommodation, business travel, subsistence, etc.

The other business that I have is a retail business and has two directors - myself and my father. We have employed 1 local person to work full time since 2010 and my father is also paid a salary each month as a director/ manager with the business though I do not take any salary from this business.

Questions:

1. I am wondering if I would be able to use any part of the expenses in the consultancy business as 'investment' amount towards meeting the extension requirement? As it was a consultancy with me providing intellectual services, there were no money put into the business apart from the client paying/ invoicing my limited company for the services provided monthly. As I pay myself as the director for the company and also claimed expenses, can this be used as part of the investment amount required?

2. I am considering opening another business acting as middlemen dealing with suppliers and consumers. Question is will the items purchased from the suppliers to sell to the consumer considered as part of investment value, if the money purchasing items from the supplier does not come from the business but from the consumer? i.e. consumer pays into my business bank account, I then place an order with the supplier. Will the cost to place an order with the supplier considered as investment towards meeting the requirement?

3. I understand that in order to get the extension I would need to prove that we have employed at least 2 person(s) working full time, as previously stated we already have 1 local person employed full time since 2010, however can I include my father to be considered as another employed person as the retail business pays him a monthly salary?

4. I am also thinking of doing an MBA in 2013 at a reputable university in the UK, and was wondering if I could not meet the requirement of extending the Entrepreneur Visa, would there be any problem for me to apply for a Student Visa? I have been in the UK since 2004 and was on a student visa for 4 years, then 2 years PSW and now Entrepreneur Visa, so I am wondering if this would cause any complication in obtaining another student visa from Entrepreneur status?

I am sorry if this has been a lengthy post, but would really appreciate anyone's input on this.

Thanks!

I.

[Aboora]

Hi,

As per my understanding,

1. You have to invest £200K until 0311/2013, obviously you will need to show the investment a little earlier (means at the time of extension application).
2. You can invest any income you have generated in the course of your business.
3. The investment has to come from you ( this point of getting from the customer in advance can be clarified by your accountant).
4. If your father is a settled person and is not one of the director, you can show his employment also, to qualify for job creation. However, if you have employed one local person for the last two years but for atleast 30hrs/week, this alone will be considered as equalent of two full time jobs for one year and is sufficient for the job creation.
5. Tier 1 -Entrepreneur cannot switch to Tier 4. Therefore, you will have to leave the country and apply for Tier 4.


Hope your questions are answered.

Can ask further, if required.

[mindthebusiness]

Many thanks Aboora, much appreciated.

So just to clarify, the business (jointly between my father and myself) have employed only 1 person over the last 2 years who have been employed continuously. I am assuming that as the employee has worked for over 24 months with the business this in itself should meet the employment requirement for the visa extension?

I also have another query with regards to entrepreneurial teams. My father obtained his Tier 1 Entrepreneur Visa in June 2010, whilst I obtained mine separately on Nov 2010. We didn't specify that we would be in a team however how I have met my funding requirement is through his bank account (I have a solicitor's letter stating that I have full access to his funds) hence met the requirement.

Now all the expenses and money that has been invested to the company (my dad and I are the directors with 50% share each) came from my father, directly from his bank account into the business bank account with his name. So my question is will I be okay to apply for an extension next year stating that we are an entrepreneur team? And is the funding okay coming from his part?

Secondly I now own several properties in the UK. I understand that residential properties cannot be used as part of meeting the investment requirement. However just recently we have decided to turn one of the apartments we own into a bed and breakfast business. By applying for planning permission and change of use through the council to turn it into a business premises, will this be counted as investment? We also purchased this property over 4-5 years ago hence I do not know if this can be part of meeting the business investment.

Any help would be much appreciated.

Many thanks

[suvalike]

Hi ,

Have you applied for your extension ?

[cappachino]

good luck with your extension application

[MTZ510]

You and your father are not team members. you both need to invest 50K or 200K indivdually.

Many thanks Aboora, much appreciated.

So just to clarify, the business (jointly between my father and myself) have employed only 1 person over the last 2 years who have been employed continuously. I am assuming that as the employee has worked for over 24 months with the business this in itself should meet the employment requirement for the visa extension?

I also have another query with regards to entrepreneurial teams. My father obtained his Tier 1 Entrepreneur Visa in June 2010, whilst I obtained mine separately on Nov 2010. We didn't specify that we would be in a team however how I have met my funding requirement is through his bank account (I have a solicitor's letter stating that I have full access to his funds) hence met the requirement.

Now all the expenses and money that has been invested to the company (my dad and I are the directors with 50% share each) came from my father, directly from his bank account into the business bank account with his name. So my question is will I be okay to apply for an extension next year stating that we are an entrepreneur team? And is the funding okay coming from his part?

Secondly I now own several properties in the UK. I understand that residential properties cannot be used as part of meeting the investment requirement. However just recently we have decided to turn one of the apartments we own into a bed and breakfast business. By applying for planning permission and change of use through the council to turn it into a business premises, will this be counted as investment? We also purchased this property over 4-5 years ago hence I do not know if this can be part of meeting the business investment.

Any help would be much appreciated.

Many thanks

[aib]

Hello,

They mention on the website that the employees must be people settled in the UK. what do they mean by that. What qualifies as settled in the UK. is there a time period for that.

Thanks

[cappachino]

Hello,

They mention on the website that the employees must be people settled in the UK. what do they mean by that. What qualifies as settled in the UK. is there a time period for that.

Thanks

That is something I would want to know as well.
a European union student studying and working at the same time would that qualify as settled worker?

[aib]

Hello,

That's what I also want to know what is a person settled in uk or a settled worker. Please clarify?

many thanks

[khandrakhan]

People with UK or EU passports or ILR

[mfh]

Hi,
Can you please confirm, if person on ILR is considered as person settled in UK?

From Guidance Document

Documents kept by an employer as evidence that an employee is a settled worker will often be the passport pages from a UK passport that contain the employee’s personal details, and the page containing the UK Government stamp or endorsement, if appropriate.

Thanks

[kaps84]

Hi,
Can you please confirm, if person on ILR is considered as person settled in UK?

From Guidance Document

Documents kept by an employer as evidence that an employee is a settled worker will often be the passport pages from a UK passport that contain the employee’s personal details, and the page containing the UK Government stamp or endorsement, if appropriate.

Thanks

ILR is definitely settled per my understanding.

[VWS]

cmon guys, its been discussed so many times!

Anyone with ILR or with EU passport is considered as settled worker for sure.

[zimba]

cmon guys, its been discussed so many times!

Anyone with ILR or with EU passport is considered as settled worker for sure.

This thread has been inactive for more than a year. Why bringing this up again ??????