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Urgent: Incorrect amount on share capital

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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ddbbss19
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Joined: Sat May 28, 2016 8:37 pm

Urgent: Incorrect amount on share capital

Post by ddbbss19 » Mon May 30, 2016 7:08 pm

HI All,

I have invested 19k in year 1, 10k in year 2 and further 21k in yr 3.

I asked my accountant to show all these money as share capital however in year 1, he shown them as a director's loan. When I found about this, he told me that he will rectify this when he will submit in yr 2.

But when he filed yr 2 account, he shows 21k in yr 1 (instead of 19k) and 8k in yr2 (instead of 10K) so total share capital in my company at the end of yr 2 is 29k invested as share capital. So that total amount of 29k does matches but their breakdown in respective years doesnt match up.

Also I was advised that director's salary wont be counted and this amount should be deducted from the actual money invested although my company is in profit in yr 2 and yr3.

As i have withdrawn over 24k in last 3 years (6.5k in yr1, 8.4k in yr2 & 3 each ) as a directory salary, I have to now add further 24k in my company.

So what will be my best bat before I apply for extension in next 3 weeks time?

(i) Is it good idea to resubmit revised account for previous years 1 & yr 2 ?

(ii) How should I invest remaining 24k now?? share capital or loan agreement?

(iii) will it be ok to have investment made in combination of both loan agreement or share capital?

(iv) My accountant has also messed up starting date of one of my employee (started 21st of month) and hence looks like she worked 120 hours in that 10 days? so is there any way can I change the starting date of that employee now? I have P46 form for that employee.

I really appreciate if you could help me as Im bit concerned especially when my accountant has messed up and me being non accountant not helped the case.

Mrchaany
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Posts: 533
Joined: Sun Jun 23, 2013 11:52 pm
Location: Reading

Re: Urgent: Incorrect amount on share capital

Post by Mrchaany » Mon May 30, 2016 9:40 pm

i have notice so many complaint about accountant, i think accountant have not jurisdiction and no proper knowledge about UKVI rules (Entrepreneur).
Applicant need to know how about entrepreneur requirements and i know it is very complicated. But, both applicant and Accountant can easily help each other regarding entrepreneur visa.

i believe applicant need to give every information and the UKVI requirement for entrepreneur visa.

Regards
IK
Strong commitment, extreme faith and honesty will recognize your existence.

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zimba
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Re: Urgent: Incorrect amount on share capital

Post by zimba » Wed Jun 01, 2016 10:33 am

(i) Is it good idea to resubmit revised account for previous years 1 & yr 2 ?
If you make corrections in the final accounts and only send that you should be fine
(ii) How should I invest remaining 24k now?? share capital or loan agreement?
Your call but I suggest share capital as you invested like this before.
(iii) will it be ok to have investment made in combination of both loan agreement or share capital?
yes
(iv) My accountant has also messed up starting date of one of my employee (started 21st of month) and hence looks like she worked 120 hours in that 10 days? so is there any way can I change the starting date of that employee now? I have P46 form for that employee.
Your solely responsible for any mistakes in your business affairs. Contact your accountant and ask him to fix things
Advice is given based on my personal research and experience only. Do NOT contact me via private message for immigration advice

dnf
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Joined: Wed May 06, 2015 10:01 pm

Re: Urgent: Incorrect amount on share capital

Post by dnf » Wed Jun 01, 2016 4:04 pm

The latest accounts would show £50k in share capital - it should also match with annual return, showing you own £50k in share capital plus a share certificate will be provided. If I was you, I will only provide HO with the latest accounts.

As the £50k was already invested as share capital, you can re-invest the further £24k as director loan. The concern here would be the Home Office lack of experience, which means that they may fail to look at the £50k investment and assume that you are claiming points on director loan (this will be a mistake and you will win if appealed/reviewed but may lose sleep). If I was you, I would further invest the £24k as share capital as well but it is your call.

Payroll mistakes must be rectified and an amended RTI should be submitted with HMRC.

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