Tier 1 Entrepreneur Extension Director Loan

[goodlk4u]

hi

as tier 1 entrepreneur extension i transferred 50,000 from my personal to business account by my name showing Investment invested 50k in one year my question is about director loan..my 3 years accounts mentioned directors loan under the CREDITORS: Amounts falling due after more than one year
my question is do i need director loan agreement or not...

Thanks..

[zimba]

You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.

[paru.org]

You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.

hi zimba
i tf amount £39k from my personal to buz acc and
£11349.30 directly to my business acc transferred from india from my personal indian acc
(so total £ 50349.30)
so i want to ask
is tf from my indian overseas ac direct to my buz acc fine ??

also secondly under other creditors section in my accounts amount showing as £50,446 so differ from loan amount by £96.70 . is that fine???
i have asked acc to put my name in accounts under notes after ur advice.
Pls clarify above 2, appreciate ur time!!!
thx zimba

[zimba]

i tf amount £39k from my personal to buz acc and
£11349.30 directly to my business acc transferred from india from my personal indian acc
(so total £ 50349.30)
so i want to ask
is tf from my indian overseas ac direct to my buz acc fine ??

Yes, as long as your name shows in the business bank statements

also secondly under other creditors section in my accounts amount showing as £50,446 so differ from loan amount by £96.70 . is that fine???

I suggest you to have the exact amount as shown in the bank statements. Makes your life easier

[goodlk4u]

As per my understanding, can anyone answer the below question, so I am not missing anything for my application.
• 50k Money transfer from Personal to business account (first year accounts shows Director Loan within one year under -other creditors)
• First year around £500 used for the personal expenses
• Over three year 55k have been spent by business to buy assets / machine plant by business and director’s loan shown in accounts. (director loan over one year shown in last year accounts under – other creditor)

Q1: 50k are showing in business account transferred with my name but however £500 was taken out only in first year whereas overall three year additional 5k. This 5k doesnt have visibility in business account but in Accounts it shows 55k director;s loan.Is that an issue?
Q2: Is director loan will meaningful by HO whereas my business have already spent 55k more than requirement is?
Q3: Business director paid one month salary to employee by cash whereas RTI & HMRC records were paid via business account. Will this be an issue or do I have to provide any proof for that?

[zimba]

Q1: 50k are showing in business account transferred with my name but however £500 was taken out only in first year whereas overall three year additional 5k. This 5k doesnt have visibility in business account but in Accounts it shows 55k director;s loan.Is that an issue?

No

Q2: Is director loan will meaningful by HO whereas my business have already spent 55k more than requirement is?

I do not understand what you mean here

Q3: Business director paid one month salary to employee by cash whereas RTI & HMRC records were paid via business account. Will this be an issue or do I have to provide any proof for that?

You need to provide payslips and FPS for all salary payments

[goodlk4u]

Q2: My business have spent 55k on assets (plant machinery ) that guarantee funds has been invested by the business that were transferred by director and now cannot be taken out by the director. Do i still need to send director loan agreement with my application to Home office?

[zimba]

Q2: My business have spent 55k on assets (plant machinery ) that guarantee funds has been invested by the business that were transferred by director and now cannot be taken out by the director. Do i still need to send director loan agreement with my application to Home office?

Yes, it is irrelevant that you spent it. You must supply ALL the required documents.
Also be aware that merely investing in assets is seen as a big red flag and in many case is not allowed. Expect scrutiny by HO during your extension

[goodlk4u]

i m confused about investment..? is it investment mean purchase equipment or machinery or just transfer money in business account is call investment..?

[zimba]

i m confused about investment..? is it investment mean purchase equipment or machinery or just transfer money in business account is call investment..?

When you transfer the money to your business to be spent in running and growing of your business and paying for business expenses. You need to submit specific documents to prove this as given in the guide.
It all depends on how much you spent, what is your business doing and what are the expenses. Purchasing machinery or office is not business expenses but assets. They are also viewed differently from tax point of view: https://www.gov.uk/capital-allowances/overview

[goodlk4u]

hi

i m pre April 2014 roue i have one employee who works 23 months still continue and the other works 6 months after left ..after replace other one who works 4 months and still continue..

[goodlk4u]

i submit my account now my accountant extend the date of submission ..is any problem..?

[Atif786]

You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.

Hi Zimba,
my tier 1 entrepreneur is due for extension next year, my question is regarding transferring funds from personal accounts to Business account, i have both my personal and business account in Natwest bank and last year on 20th April 2015 i trasfered 20k from my personal to businees using chaps payment method with reference director's loan but couldn't transfer remaining 30k the same day there was alimit of 20k per day, so the next day i made the internal payment from my personal account to business account using an option transfer funds and managed to transfer 20 and 10k , but when i look at my parsonal bank statment now, the personal one with first payment of 20k shows my business name but the 2 subsequent payments of 20k and 10k only shows my business account number the funds transferred to but not business name as they were internally transferred where you don't get an option to give reference , contrary on the business statement for the first transaction it shows my name with reference as director's loan but the last 2 transactions of 20k and 10k show my personal account number but not my name.
i am a bit apprehensive about the situation now as HO asking for readily proof of investment and they way they are refusing the application on such small issues, i am wondering they might say that only 20k invested as remaining transactions don't show my name however both the statements have relevant account numbers
kindly advice me, if it a sticky wicked situation for me..
your reply is hughly appreciated
Thnaks in advance

[zimba]

Provide both the relevant personal and business bank statements and highlight each transaction. They can clearly see that it came from your personal account to the business. You should not face any issues

[Atif786]

Hi Zimba,
Thanks for the reply, I hope there isn't such requirement that my name should appear on bank statement .
I was only worried that one transaction has my name & ref as director load but the last 2 don't so Ho might get confused

[ishfaqsangra]

No need for name.provide both personal and business account statemenrs.they did not ask for name.but should be identifiable so both personal and business account will suffice.

[paru.org]

i tf amount £39k from my personal to buz acc and
£11349.30 directly to my business acc transferred from india from my personal indian acc
(so total £ 50349.30)
so i want to ask
is tf from my indian overseas ac direct to my buz acc fine ??

Yes, as long as your name shows in the business bank statements

also secondly under other creditors section in my accounts amount showing as £50,446 so differ from loan amount by £96.70 . is that fine???

I suggest you to have the exact amount as shown in the bank statements. Makes your life easier

hi zimba
is accountant letter to verify that 2 posts have been created is mandatory?

plz reply

[paru.org]

You need a director's loan agreement as required in the guide. Your name should also show up on the company account notes opposite the loan value.

zimba!!!
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).

question: can i use downloaded statements from online banking which shows transaction but not my name on personal bank statement or do i need to get those stamped from bank if downloaded or
theses need to be originals??
i have downloaded the statements from online bankng with those particular entries which shows dLoan only,

thx

[zimba]

question: can i use downloaded statements from online banking which shows transaction but not my name on personal bank statement or do i need to get those stamped from bank if downloaded or
theses need to be originals??
i have downloaded the statements from online bankng with those particular entries which shows dLoan only,
thx

Bank statements must be original.

[paru.org]

question: can i use downloaded statements from online banking which shows transaction but not my name on personal bank statement or do i need to get those stamped from bank if downloaded or
theses need to be originals??
i have downloaded the statements from online bankng with those particular entries which shows dLoan only,
thx

Bank statements must be original.

thx zimba
is accountant letter to verify that 2 posts have been created is mandatory?

[zimba]

Only if you joined/taken over a business. Read the guide

[alijafri]

Hi Zimba88

Pardon me if I have missed repsonse on these question on previous threads.

I have few questions related to Directors loan. I came to UK in 2014 and made first investment in 2015 October and completed investment in March 2017.

1. Does the Director loan agreement have to be on legal paper ?
2. DOes it have to be attested from solicitor or can simply be on one plain paper with only one sign of myself. ?
3. What date do i need to have on the agreement ?
4. The director loan amount reflects against my name in accounts so thats not a problem. However please guide me what amount do I have to write on agreement ? Does it have to match the amount on accounts ?
5. If that date on agreement has to be when I made the first transfer, how is it possible to write before hand that I am loaning out 229,000 amount of money and that matches the accounts as well......you know what i mean ?

[CR001]

Hi Zimba88

Pardon me if I have missed repsonse on these question on previous threads.

I have few questions related to Directors loan. I came to UK in 2014 and made first investment in 2015 October and completed investment in March 2017.

1. Does the Director loan agreement have to be on legal paper ?
2. DOes it have to be attested from solicitor or can simply be on one plain paper with only one sign of myself. ?
3. What date do i need to have on the agreement ?
4. The director loan amount reflects against my name in accounts so thats not a problem. However please guide me what amount do I have to write on agreement ? Does it have to match the amount on accounts ?
5. If that date on agreement has to be when I made the first transfer, how is it possible to write before hand that I am loaning out 229,000 amount of money and that matches the accounts as well......you know what i mean ?

Please continue in your own topic you already have instead of tagging onto a thread that is almost a year old.