Refusal -- Entrepreneur Extension. Advice?

[niomi]

I've found out I've been refused. My timeline was as follows:

Application submitted - 11 March
Biometrics submitted - 22 March
Decision dated - 4 May (received 9 May)

They stated the following in my application:

1. The Home Office didn’t accept the monies transferred by my parents' account as 'readily identifiable' transfers from me to the business.
2. The management/ unaudited accounts provided did not show the director's loan in my own name.

On point 1, about 25% of the investment went directly from my parents' account to my business account rather than into my personal account and then business. In my original application 3 years ago it was clearly stated that the loan would be coming from my father and that all funds were available to me in the UK at any time (signed by the home bank). Hence my solicitor is saying we need to argue that the funds were in fact 'readily identifiable' because of this, and provide another signed letter explaining this.

Regarding point 2, My solicitor stated that because the director's loan is in my name in the cover letter of the management accounts that should have been considered to be part of the management accounts, so he views it as the Home Office's error. Any thoughts?

I am planning to do admin review, wait for the decision, and then immediately send in a second application. Solicitor suggested I don't even wait for the AR decision but I don't see the benefit in skipping that step, even if it is rejected 90% of the time. Any thoughts?

Is it true that the deadline to apply again will be 90 days after my original visa expired (which in this case was 11 March)?

We can fix point 2 in a new application, but what about point 1?

Does anyone have any advice on the best course of action?

Such a frustrating turn of events and it's unfortunate to see so many other refusals after long waits as well.

[hina_pirzada]

Hi,

Did you submit your personal bank statement showing that the money transfer in your personal account from your parents?

If the answer is "YES" so can you explain there is any such requirement form HO to provide source of funds. For example if third party transfer funds in your personal account and then you transfer funds in your business account so in you your business account your name supposed to be clearly mention there.

for example if you are Mr ABC so your Business Bank Statement showing funds from Mr ABC

[Mrchaany]

I believe you can easily cover later point but the former point according to appendix A is very specific about identical transaction along with accounts. For successful reapplication your need to satisfied ukvi about your investment.

[niomi]

Did you submit your personal bank statement showing that the money transfer in your personal account from your parents?

Yes, I did submit my personal bank statement showing all the transfers (about 75% of them). However 3 transactions went directly from *parents* to *business* (skipping my personal account). Do you think I should include official bank statements of my parents' account to demonstrate this?

I believe you can easily cover later point but the former point according to appendix A is very specific about identical transaction along with accounts. For successful reapplication your need to satisfied ukvi about your investment.

My solicitor wants to argue that because the first transaction is from my father and the other two confirms they are director loans within the reference, they are 'readily identifiable' transfers from me to my business. Also, the amount invested is also confirmed within the accountant letter.

Within the guidance it does not state it must be 'readily identifiable' from a specific bank account -- just that it must be a readily identifiable transfer. So he believes the guidance is deliberately vague on this point and he's had other clients in the past get accepted despite similar situations.

Is it too late to re-transfer the funds?

[Mrchaany]

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). [b][b][b]The statement(s) must clearly show the
transfer of this money from you to your business[/b][/b][/b]. You must also provide a legal
agreement, between you (in the name that appears on your application for leave) and the
company.

[sm12]

What is the reference in your business bank statements?
What reference did your parents put?

You should go for AR first.

[niomi]

What is the reference in your business bank statements?
What reference did your parents put?

Thank you for your reply.

One said:

''NAME (of father) and NAME (of mother), INWARD STG PYMT'

the other 2 said:
DIRECTORS LOAN

[niomi]

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). The statement(s) must clearly show the
transfer of this money from you to your business. You must also provide a legal
agreement, between you (in the name that appears on your application for leave) and the
company.

The transactions ARE identifiable in my business bank accounts (please see above for what the references were). Do you think what my solicitor is proposing to argue is valid? Is there anything else that can be done to give me more of a chance for them to accept that they were readily identifiable transactions?

[Mrchaany]

Only argue at judicial review,
Because they are looking for your name as a reference in your company's business account.

[jafersadeq]

Hi,

Did you submit your personal bank statement showing that the money transfer in your personal account from your parents?

If the answer is "YES" so can you explain there is any such requirement form HO to provide source of funds. For example if third party transfer funds in your personal account and then you transfer funds in your business account so in you your business account your name supposed to be clearly mention there.

for example if you are Mr ABC so your Business Bank Statement showing funds from Mr ABC

Dear hina,

If he has come to the UK (for example in 2013) and in 2016 he has to submit his application for extension, they will see 200k transferred from personal account in the UK, where is the money come from? he is in the UK for three years, he is originally from abroad. If he transfer the money from abroad, no one will ask him. but he transferred it in the UK. He has to submit a proof of source of those funds. If the money from his parents, a personal bank statement of his father with a letter shows the reason of the transferring and the source of his money.

Thanks

[sm12]

Hi Niomi
I know that new evidence isn't allowed but can you send a cover letter with AR? As long as you can communicate that your parents are the third party from your initial application, you would have some chance I think.

Also, you get 28 days to reapply so go for AR first. I don't think you have to reapply within 90 days of the expiry date if you applied on time and before the expiry date.

[cappachino]

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). The statement(s) must clearly show the
transfer of this money from you to your business. You must also provide a legal
agreement, between you (in the name that appears on your application for leave) and the
company.

I agree this is true for a ltd company (director loan)
What about sole proprietor do they need to provide personal as well as business bank account showing investment transactions

[umer.shahzad1]

According to the guidance notes if you are doing investment through directors Loans then it means Loan should be given by the director of the company i think so your parents are not the director of the company you are the director of the company so your parents have to transfer monies into your personal account and then they should be invested into the business hope so that helps

[sm12]

If you are the only director, how can the reference Directors Loan not be identifiable?
Is there another director?

[umer.shahzad1]

you can submit amended accounts in house of companies and file an amended return so that your tax can be reviewed and you can write your name on those it will take 10 days to review your amended return your accountant can help you on that but for director loans the investment should be done directly by you my suggestion is to 1) file amended return 2) ask your family to send money directly into your account and then
transfer it into your business account then try to do some investment if possible .

[niomi]

If you are the only director, how can the reference Directors Loan not be identifiable?
Is there another director?

My father is a director (10% shares).

[niomi]

I know that new evidence isn't allowed but can you send a cover letter with AR? As long as you can communicate that your parents are the third party from your initial application, you would have some chance I think.

Thank you for the suggestion I will ask solicitor about this on Monday

[niomi]

you can submit amended accounts in house of companies and file an amended return so that your tax can be reviewed and you can write your name on those it will take 10 days to review your amended return your accountant can help you on that but for director loans the investment should be done directly by you my suggestion is to 1) file amended return 2) ask your family to send money directly into your account and then
transfer it into your business account then try to do some investment if possible .

Solicitor has said they will deal with all of this side of things with my accountants. I'll bring it up with him. Am a bit worried about this as my tax year has just ended and they literally just sent the return.

[umer.shahzad1]

if your father have 10 percent share then ask accountant to change the investment method as director loan and share capital ask him to make share docs which can be presented to ho dont file AR it will waste your time file a fresh application it will help you ! if your accoutant have recently filed a return he can change it any time amended returns can help you change account for last 3 years my friend if you need further help inbox me

[Mrchaany]

[quote="sm12"]If you are the only director, how can the reference Directors Loan not be identifiable?
Is there another director?[/quote]
What you mean no reference is required only director names are require to be in business account transactions no reference just directors names need to be visible if funds transfer from personal to Buinesss account
This is called director loan.

[zimba]

You claimed that YOU have given your company a Director's Loan then you showed that 25% of that came from your parents ???? How's is that going to add up ??? Can you possibly think that you can even argue this, given that immigration rules explicitly require YOU as the applicant to show the money from YOUR OWN bank account to the business under 46-SD(a)(iii):

If the applicant has made the investment in the form of a director’s loan, it must be shown both in the relevant set of financial accounts provided, and through readily identifiable transactions in the applicant’s business bank statements, which must clearly show the transfer of this money from the applicant to his business.

Your chances of arguing anything in AR is near zero. Transfer the 25% under your name again and apply for a fresh application.

[Hellopino]

Hi Zimba,

Do we need to show a transfer from Third party to personal account as well as a proof that money came from Third Party or it will be understood by home office.

Regards

[zimba]

Hi Zimba,

Do we need to show a transfer from Third party to personal account as well as a proof that money came from Third Party or it will be understood by home office.

Regards

Yes but as long as you provide the third party declaration showing that money is made available to you by them. I highly suggest that you ask the 3rd party to transfer the money to you instead so you can invest it with more control, if they agree.

[Hellopino]

Thanks Zima,

I provided Third Party Declaration as well as authorised signatory on Third Party at the time of initial application. Now Third party transfers first into my account and then I transfer funds into business account.

Now my question is at the time of extension what evidence I need to provide about that.

[zimba]

Thanks Zima,

I provided Third Party Declaration as well as authorised signatory on Third Party at the time of initial application. Now Third party transfers first into my account and then I transfer funds into business account.

Now my question is at the time of extension what evidence I need to provide about that.

If the money was transferred to you, you do not need to show any other documents except for usual investment requirements like loan agreement, accounts, etc