Bad news for Tier1 (E) applicants

[RizKCB]

Rehan01 you are right.

HO should not delay decisions of applications which are already submitted. They should introduce some sort of transitional visa stage of 6-12 months to extend it further upon successful proof of investments by applicant. It would work for them and for applicants as well.

Anyway coming days might give better idea.

[rehan01]

Rehan01 you are right.

HO should not delay decisions of applications which are already submitted. They should introduce some sort of transitional visa stage of 6-12 months to extend it further upon successful proof of investments by applicant. It would work for them and for applicants as well.

Anyway coming days might give better idea.

Yes correct .... Hopefully some better rules will be coming out soon ..... and they are definitely started processing application received in January as I have received acknowledgement letter and Bio metric within 2 weeks of submission of application and I will not be surprised if decision comes in another 4 weeks time.

And I guess application submitted in December will be treated more carefully and in depth because of the number of application submitted as compare to other months due to changes in the rules in place from 13 /12 /012.

hope it help

regards

Rehan

[samira_uk]

It is certainly a bad news. They did the same for Tier 4 and established the Genuine Test and now Tier 4 is no longer a PBS as everything becomes dependent on Visa Officer judgement (in contrary to the philosophy of Tier 4). Recently, there have been many cases of refusals for Tier 4 due to the new interviews.

I am not saying that it is bad for UK as I know there have been many abuses but it will be bad for applicants. I am thinking maybe because of the new changes the processing timeline has become so lengthy.

[surveyer]

Below statement from UKBA website kind of sums it up. I guess genuine people looking to invest do not have to worry but others might need to think more than twice

''A written ministerial statement setting out the changes to the Tier 1 (Entrepreneur) route has been laid in Parliament.

We are introducing the following changes:

an introduction of a genuine entrepreneur test which will give UK Border Agency caseworkers the ability to test the credibility of suspicious applicants; and
a change that requires the necessary minimum funds to be held, or invested in the business, on an ongoing basis rather than solely at the time of application.
These changes are being made in response to evidence that the route is being targeted by applicants seeking to abuse the Immigration Rules.

Immigration Minister Mark Harper said:

'We have acted quickly to stamp out abuse by those looking to play the system.

'The UK remains open to the brightest and best - genuine entrepreneurs with the ideas and motivation to drive economic growth will always be welcome in the UK.''

[RizKCB]

I was surprised why the proposed changes are laid on 30 January and passed on the same date for effectiveness. It was so quick... Then I gone through following point:

The number of in-country applications has risen from 739 in 2011 to 6,878 in 2012, accelerating in the second half of the year and culminating in a spike of nearly 3,000 applications in December alone. The Government believes the spike in December was largely related to the advance notice of the changes to the Tier 1 (Entrepreneur) category that were announced when HC 760 was laid on 22 November 2012, and which came into force on 13 December 2012 (These changes prevented students from switching into the route unless they have £50,000 funding from a specified source, such as a registered venture capitalist firm or UK Government department). Although the volume of applications has since fallen from that spike, it continues to be high and, combined with the evidence of abuse, gives rise to the need to act quickly. Announcing these latest changes with 21 days notice would be likely to generate a similar spike in abusive applications to that seen in December, from those seeking to avoid the new tests of genuineness.

[rehan01]

I was surprised why the proposed changes are laid on 30 January and passed on the same date for effectiveness. It was so quick... Then I gone through following point:

The number of in-country applications has risen from 739 in 2011 to 6,878 in 2012, accelerating in the second half of the year and culminating in a spike of nearly 3,000 applications in December alone. The Government believes the spike in December was largely related to the advance notice of the changes to the Tier 1 (Entrepreneur) category that were announced when HC 760 was laid on 22 November 2012, and which came into force on 13 December 2012 (These changes prevented students from switching into the route unless they have £50,000 funding from a specified source, such as a registered venture capitalist firm or UK Government department). Although the volume of applications has since fallen from that spike, it continues to be high and, combined with the evidence of abuse, gives rise to the need to act quickly. Announcing these latest changes with 21 days notice would be likely to generate a similar spike in abusive applications to that seen in December, from those seeking to avoid the new tests of genuineness.

Well this is exactly what cause them to take action against it and come out with more stronger checks and tighten things up, but for genuine applicant I cant see any problem but for people who are just about to abuse system will be in big trouble.

regards

Rehan

[dd156]

They've referred to artificial businesses in the changes. I wonder if a lot of people who received visas did not continue operations or did not start work within 6 months of receiving entry clearance and entering the country.

[rehan01]

They've referred to artificial businesses in the changes. I wonder if a lot of people who received visas did not continue operations or did not start work within 6 months of receiving entry clearance and entering the country.

well if someone got visa and didn't start business or get involved in the activity with in 6 months and than there is no chances of extension after 3 years for sure as this is one of the requirements as per old rules, but I think this change is more to do with the rise in number of application than anything else.


regards

[maverick_76]

If you already have leave as a Tier 1 (Entrepreneur) we may curtail your leave if the
funds you have used to apply cease to be available to you (unless you have spent
them in the establishment or running of your business or businesses). ‘Spent’ excludes
spending on your own remuneration.

˄˄˄˄˄˄˄˄

So this means the salary which you will pay to your self or directors salary for running of the business will not be part of investment. This is disappointing to say the least

[rehan01]

If you already have leave as a Tier 1 (Entrepreneur) we may curtail your leave if the
funds you have used to apply cease to be available to you (unless you have spent
them in the establishment or running of your business or businesses). ‘Spent’ excludes
spending on your own remuneration.

˄˄˄˄˄˄˄˄

So this means the salary which you will pay to your self or directors salary for running of the business will not be part of investment. This is disappointing to say the least

Check the other thread where you will find a detail answer in regards to your question where luckapooka gave very detail answer abt this you will definately find it helful ...... So once you got the visa u can transfer the money into company bank account and than u can use it for paying out salaries too etc.

Regards

[maverick_76]

Check the other thread where you will find a detail answer in regards to your question where luckapooka gave very detail answer abt this you will definately find it helful ...... So once you got the visa u can transfer the money into company bank account and than u can use it for paying out salaries too etc.

Regards

This was my understanding as well before today. However it is specifically mentioned that " 'spent' excludes spending on your own remuneration.
This is not very clear but it may mean that investment funds cant be used to pay directors salary. Please correct me if this is incorrect interpretation."[/quote]

[rehan01]

Check the other thread where you will find a detail answer in regards to your question where luckapooka gave very detail answer abt this you will definately find it helful ...... So once you got the visa u can transfer the money into company bank account and than u can use it for paying out salaries too etc.

Regards

This was my understanding as well before today. However it is specifically mentioned that " 'spent' excludes spending on your own remuneration.
This is not very clear but it may mean that investment funds cant be used to pay directors salary. Please correct me if this is incorrect interpretation."

[/quote]


What my understanding after the explanation given by Lucapooka in another thread was that if you transfer funds in company business account than technically you have fulfil the requirements of investments of funds and than you can use this money to pay for employee salaries, business setup cost etc ..... eg for example if you business just need investment of £25000 in 3 years time and it manage to create 2 jobs fulfilling all other criteria and you have £5000 in business bank account and you paid £20,000 in salaries so I guess you have met all the requirements.

this is what my understanding.

but check this thread and post this question there might get a better answer from someone http://www.immigrationboards.com/viewtopic.php?t=124691

regards

[rahulsingh1]

Here you go.

use this link -- and scroll down to page 7

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary


-“(c) Without prejudice to the grounds for curtailment in paragraph 323 of these
Rules, leave to enter or remain granted to a Tier 1 (Entrepreneur) Migrant may
be curtailed if:
(i) within 6 months of the date specified in paragraph (d), the applicant
has not done one or more of the following things:
(1) registered with HM Revenue and Customs as self-employed,
(2) registered a new business in which he is a director, or
(3) registered as a director of an existing business, or
(ii) the funds referred to in the relevant sections of Appendix A cease to be
available to him, except where they have been spent in the
establishment or running of his business or businesses. ‘Spent’
excludes spending on the applicant’s own remuneration. ‘Available to
him’ means that the funds are:
(1) in his own possession,
(2) in the financial accounts of a UK incorporated business of
which he is the director, or
(3) available from the third party or parties named in the
application under the terms of the declaration(s) referred to in
paragraph 41-SD(b) of Appendix A.”


---


Don't know how they will check the second part after hte person gets the visa and is already in the UK.

Also it clearly says in come place that it wil apply to applications made on30th jan and the ones not decided still.
But above it says that if you are already in the United Kingdom.

I have no idea what UKBA is thinking ?? They do a lousy job I must say in doing anything. Bl**dy tax payer paid plebs.

[sm12]

Here you go.

use this link -- and scroll down to page 7

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary


-“(c) Without prejudice to the grounds for curtailment in paragraph 323 of these
Rules, leave to enter or remain granted to a Tier 1 (Entrepreneur) Migrant may
be curtailed if:
(i) within 6 months of the date specified in paragraph (d), the applicant
has not done one or more of the following things:
(1) registered with HM Revenue and Customs as self-employed,
(2) registered a new business in which he is a director, or
(3) registered as a director of an existing business, or
(ii) the funds referred to in the relevant sections of Appendix A cease to be
available to him, except where they have been spent in the
establishment or running of his business or businesses. ‘Spent’
excludes spending on the applicant’s own remuneration. ‘Available to
him’ means that the funds are:
(1) in his own possession,
(2) in the financial accounts of a UK incorporated business of
which he is the director, or
(3) available from the third party or parties named in the
application under the terms of the declaration(s) referred to in
paragraph 41-SD(b) of Appendix A.”


---


Don't know how they will check the second part after hte person gets the visa and is already in the UK.

Also it clearly says in come place that it wil apply to applications made on30th jan and the ones not decided still.
But above it says that if you are already in the United Kingdom.

I have no idea what UKBA is thinking ?? They do a lousy job I must say in doing anything. Bl**dy tax payer paid plebs.

It's not going to deter people who are adamant on coming here. The only people who will be put off by the requirement of holding idle cash/funds will be genuine entrepreneurs who won't see much financial sense, considering the opportunity cost.

[kayani2012]

Changes to Tier 1 (Entrepreneur) route from 31 January 2013

30 January 2013

This page provides guidance on the changes to the Immigration Rules for the Tier 1 (Entrepreneur) category, in particular for applicants who applied before 31 Janaury 2013 and are waiting for a decision on their Tier 1 (Entrepreneur) application.

If we have not decided your application before 31 January or you apply on or after this date, we will consider it under the new rules.

We will keep this page updated with the latest information.

We may ask you to:

provide additional information, for example business plans and evidence of market research, to confirm the genuineness of your application; and
demonstrate that you continue to have access to the funds ahead of them being invested in a UK business. You may have moved money into your business in the meantime. If so, you will need to provide the business accounts or accountant certificate showing that you have invested the funds in the business, together with the updated evidence of any remaining monies to make up your full investment.

You will have 28 days in which to provide the information we request. We may also carry out checks to verify the information provided and you could be invited to attend an interview to discuss your application.

If you are applying on or after 31 January and are relying on funds from a third party, the declarations you provide from those third parties will need to confirm that the funds will continue to be available to you until they are used.

Further information about the evidence you need to supply as part of your application can be found in the Tier 1 (Entrepreneur) policy guidance.

[londongooner]

Hi all,

What I want to know is: (I'm going from PSW to Tier 1 Entrepreneur)
I am showing funds from a third party and showing that the funds are transferable and available to me until they are invested into the business.
Is that all that I am required to do until I apply for an extension after three years.
Or, will the UKBA once my visa is approved, ask me to show proof of investment before the 3 years? If they do, is there a minimum amount I need to show as invested? The money of course will still be available to me to access and invest.
I am showing the business of private tutoring which doesn't require that much of an investment which puts me in a fix.

Cheers.

[rehan01]

Hi all,

What I want to know is: (I'm going from PSW to Tier 1 Entrepreneur)
I am showing funds from a third party and showing that the funds are transferable and available to me until they are invested into the business.
Is that all that I am required to do until I apply for an extension after three years.
Or, will the UKBA once my visa is approved, ask me to show proof of investment before the 3 years? If they do, is there a minimum amount I need to show as invested? The money of course will still be available to me to access and invest.
I am showing the business of private tutoring which doesn't require that much of an investment which puts me in a fix.

Cheers.

you have to have accesses to 50k on ongoing basis irrespective of the amount invested ........ eg (your business require 10k of investment in 3 years and you have created jobs and meet rest all the criteria but you still need to show the balance of 40k in your business account) than you will score points for investment.

as when money is transferred from personal account to business account it will be consider as injected into business etc

I will suggest you to read this thread http://www.immigrationboards.com/viewtopic.php?t=124691

lucapooka given very good explanation of similar question as yours.

regards

[memoa]

HI guys ,

please i have something i need to know about

I have 40k in my account and i borrowed 10k from someone, but it appears as long- term loan on the bank transfer.I am going to set up a company and open business account and transfer the money 50k in the business account and use my old account to show £900 for 3 months as maintenance.
is that going to affect the case to apply as they want 3 months bank statment for £900

is there any problem if you have loan in the bank statement of the maintenance?

please help

[MNaveedonline]

Hi all,

What I want to know is: (I'm going from PSW to Tier 1 Entrepreneur)
I am showing funds from a third party and showing that the funds are transferable and available to me until they are invested into the business.
Is that all that I am required to do until I apply for an extension after three years.
Or, will the UKBA once my visa is approved, ask me to show proof of investment before the 3 years? If they do, is there a minimum amount I need to show as invested? The money of course will still be available to me to access and invest.
I am showing the business of private tutoring which doesn't require that much of an investment which puts me in a fix.

Cheers.

you have to have accesses to 50k on ongoing basis irrespective of the amount invested ........ eg (your business require 10k of investment in 3 years and you have created jobs and meet rest all the criteria but you still need to show the balance of 40k in your business account) than you will score points for investment.

as when money is transferred from personal account to business account it will be consider as injected into business etc

I will suggest you to read this thread http://www.immigrationboards.com/viewtopic.php?t=124691

lucapooka given very good explanation of similar question as yours.

regards

well. After taking Enterprenuer visa, I will go back to Pak. for 2 months holidays and when i will come back visa officer check again 50,000 pounds funds for business.

[effell007]

We applied in Aug (PSW to ENT.) and showed money available 50k in joint account. Over the month we invested almost half of funds for our business. But we invested straight from joint ac rather than our buss ac. Now wondering can it be shown as investment for the company.
Also we lease an office space for the business. Can lease be a investment?

[rehan01]

HI guys ,

please i have something i need to know about

I have 40k in my account and i borrowed 10k from someone, but it appears as long- term loan on the bank transfer.I am going to set up a company and open business account and transfer the money 50k in the business account and use my old account to show £900 for 3 months as maintenance.
is that going to affect the case to apply as they want 3 months bank statment for £900

is there any problem if you have loan in the bank statement of the maintenance?

please help

that shouldn't be a problem and other thing you have to keep 50k funds in your personal account not business account when you applying for visa as these funds should be of your own money so keep it in personal account and you can use same statement for maintenance and funds that is not an issue as long as you have maintained more than £900 for 90 consecutive days in your bank account and closing balance is 50k +900 (for 90 days only) than you will be fine .

regards

[rehan01]

Hi all,

What I want to know is: (I'm going from PSW to Tier 1 Entrepreneur)
I am showing funds from a third party and showing that the funds are transferable and available to me until they are invested into the business.
Is that all that I am required to do until I apply for an extension after three years.
Or, will the UKBA once my visa is approved, ask me to show proof of investment before the 3 years? If they do, is there a minimum amount I need to show as invested? The money of course will still be available to me to access and invest.
I am showing the business of private tutoring which doesn't require that much of an investment which puts me in a fix.

Cheers.

you have to have accesses to 50k on ongoing basis irrespective of the amount invested ........ eg (your business require 10k of investment in 3 years and you have created jobs and meet rest all the criteria but you still need to show the balance of 40k in your business account) than you will score points for investment.

as when money is transferred from personal account to business account it will be consider as injected into business etc

I will suggest you to read this thread http://www.immigrationboards.com/viewtopic.php?t=124691

lucapooka given very good explanation of similar question as yours.

regards

well. After taking Enterprenuer visa, I will go back to Pak. for 2 months holidays and when i will come back visa officer check again 50,000 pounds funds for business.

well they can check anything and can ask you what business you doing etc and how far you have progressed with the business and could also check 50k funds etc anything is possible .... but going away for 2 months and leaving business without any attention how will you prove this ? what will happen to business while you are out of country for 2 months ?

as long as you have answer to all this than nothing to worry at all travel as much as you want but read the policy guidance that how much time you are allowed to stay out of country as it will effect your extension and ILR later.

regards

[rehan01]

We applied in Aug (PSW to ENT.) and showed money available 50k in joint account. Over the month we invested almost half of funds for our business. But we invested straight from joint ac rather than our buss ac. Now wondering can it be shown as investment for the company.
Also we lease an office space for the business. Can lease be a investment?

This is excellent as long as you have invested in business and you can prove this with correct documentation than nothing to worry about as far as I know.

and I don't know about the lease as investment.

regards

[Jabs]

Lease is an operating cost and will be considered an investment but make sure you get your paper work in order since you are paying out of your personal account.

A little concerning that you have already invested 50% of your funds as you are still awaiting the outcome of your visa but I hope it all comes through OK for you.

[londongooner]

Hi all,

What I want to know is: (I'm going from PSW to Tier 1 Entrepreneur)
I am showing funds from a third party and showing that the funds are transferable and available to me until they are invested into the business.
Is that all that I am required to do until I apply for an extension after three years.
Or, will the UKBA once my visa is approved, ask me to show proof of investment before the 3 years? If they do, is there a minimum amount I need to show as invested? The money of course will still be available to me to access and invest.
I am showing the business of private tutoring which doesn't require that much of an investment which puts me in a fix.

Cheers.

you have to have accesses to 50k on ongoing basis irrespective of the amount invested ........ eg (your business require 10k of investment in 3 years and you have created jobs and meet rest all the criteria but you still need to show the balance of 40k in your business account) than you will score points for investment.

as when money is transferred from personal account to business account it will be consider as injected into business etc

I will suggest you to read this thread http://www.immigrationboards.com/viewtopic.php?t=124691

lucapooka given very good explanation of similar question as yours.

regards

thanks for this

I was planning to not transfer the money or invest at all while showing that I have continuous access to the funds i applied with. Will this create a problem after 3 years (for extension) or is there a potential for them to curtail my visa before that?

After all, they cannot force you to make an investment into your business, can they?

also, can i show an investment from a source other than the one i showed when applying?

thanks for all the answers guys.

cheers