Tier 1 Entrepreneur Extension

[ssardar]

Dear Friends,

What should be the necessary type of investment tier 1 extension.

1. Could it be General day to day business expenses like insurance, cost of employees, premises rent, utility bills?
2. If part of 50K funds has been transferred from personal to business account, will it form a part of investment as per home office requirements?

Many Thanks

[zimba]

1. Yes
2. Merely transferring money will not count as investment. It should be an unsecured director's loan or via share capital. Read the guide on what you have to supply to support your application and score points on investment

[ssardar]

Thanks Zimba.

After reading the below part of the 04/2016 guidance.

For Extension purposes, can I transfer remainder of 50k funds (after deducting business expenses during 3 yrs) into company bank a/c in form of shares acquisition or directors loan.

Can someone please explain what is the Direct Cash investment in the guidance below?

Types of investment accepted for the award of points
A20.
Direct cash investment In order to ensure that the money is used by the business, you should provide the accounts of that business for assessment. These accounts must show the investment in money made directly by you, in your own name.

Share capital This only applies to migrants with a company structure that can raise money through shares.
You must give us business accounts showing the shareholders in the business. The amount and value of the shares (on the date of purchase) owned by you (in your name as it appears on your application) must be shown. If the value of your share capital is not shown in the accounts, then share certificates should be submitted as documentary evidence.

Director’s loan This only applies to migrants who become directors of a company. A director’s loan to the company will be considered for the award of points as long as it is unsecured and subordinated in favour of third-party creditors. (For the purposes of this guidance an unsecured loan is where you have loaned money to the business that is not secured by property or assets that become subject to seizure on default. Third-party creditors are those individuals or companies that the business owes money to, not including you.)

[zimba]

From accounting point of view you can spend money from you personal bank account on behalf of your business however the HO won't accept it as investment.
You need to show the full amount was transferred and invested to score points. This must be only either as unsecured director's loan or share capital investment as given in the guide. You can spend cash directly from your personal account only if you are self employed.

[Syedbk156]

My Tier 1 entrepreneur Team extension is due in may 2017 , I have fulfilled all the attributes for a successful application.

recently, Due to my accountant negligence have received several penalties and late submission fines.
there is loss in previous 2 years in the year end return ,the business is on shaky grounds.

I am planning to sell the business and switch to any other business.

the 200k investment and 2 employees for 12 months attributes are completed in last 24 months of total 3 years till may 2017.

at this stage please suggest will it be an issue to dissolve the current LTD company and simultaneously open another company.

thanks
syed

[zimba]

My Tier 1 entrepreneur Team extension is due in may 2017 , I have fulfilled all the attributes for a successful application.

recently, Due to my accountant negligence have received several penalties and late submission fines.
there is loss in previous 2 years in the year end return ,the business is on shaky grounds.

I am planning to sell the business and switch to any other business.

the 200k investment and 2 employees for 12 months attributes are completed in last 24 months of total 3 years till may 2017.

at this stage please suggest will it be an issue to dissolve the current LTD company and simultaneously open another company.

thanks
syed

1. You are solely responsible for any failures in your business including failure to file and pay taxes on time.
2. You can claim points in a company you are no longer a director as long as you can show you were the director when the investments was done and jobs were created.