management account issue for extension

[chy_55223]

Dear respected members and Zimba88

please advice

My accountant prepared 2 annual account (2014+2015) and 1 year management account(2016).

the 2 year annual accounts look all good. in the note part, he mentioned directors loan by directors.

However, the management account, only including 2 pages: detailed trading and profit and loss account + Schedule of administrative expenses.

my question is, dose the management account should only have these two pages, any thing else do I need to require?

many thanks

[kingraja]

I have applied last week with 2 years unaudited accounts & 2016 management accounts, my accountant prepared the management accounts in same format as previous 2 years only difference is these are called management accounts.

[zimba]

Why are you submitting management accounts ?? If your full investment is covered by your annual accounts they are sufficient to prove your investment. Management accounts pretty much look like the normal annual accounts

[Mrchaany]

Annual accounts, unaudited accounts, financial accounts are also called anagement accounts.
Theses are same things just look to gauidance

[chy_55223]

Why are you submitting management accounts ?? If your full investment is covered by your annual accounts they are sufficient to prove your investment. Management accounts pretty much look like the normal annual accounts

Hi Zimba88

thanks for input

1. I am going to submit the application next week. so the accountant cannot prepare this year annual account as the accountant year end of June, so he prepared the management account covering end of May.

2.My first year account director loan already around 220,000. But we claimed directors salary in the past 3 years. so our team has reinvested 100,000 in the 3rd year. So I think I have to show this in the 3rd year management account.

Correct me if i am wrong

[chy_55223]

I have applied last week with 2 years unaudited accounts & 2016 management accounts, my accountant prepared the management accounts in same format as previous 2 years only difference is these are called management accounts.

thanks
i think it should the same format, i am asking my accountant to have a look.
and also, you submitted the management account 3rd year is the same reason as me? not a full accountant year when i am sending the application?

[chy_55223]

Hi Everyone and Zimba88

I have another concern about directors loan shown in the different two documents:

1. Accountant letter confirm investment

states that
"xxx and xxx has directly invested £220,000 into xxx ltd. the loans to the company by the directors are unsecured, interest free, have no fixed repayment term and subordinated in the third party creditors."
it looks no problem

2. in the annual account, note part in creditors

states that
"Other creditors - £216,922

Included in other creditors is a loan owing to the directors, Mr xxx and Mr xxx, of £216,922.

The loan is unsecured, interest free, have no fixed repayment term and subordinated in the third party creditors."

my question is
1. do these two documents against each other, as the amount is different from £220,000 to£216,922.
does this figure should be exact the same?
2. does these statements enough for claim points? anything else need the accountant to mention about director loan?

thanks in advance

thanks

[CR001]

Please keep all your questions on the same application in a single topic/thread, this one where I have merged to into one. Not necessary to start a new one with each query. See Multiple Posts (click)

[Parklane]

Hi Everyone and Zimba88

I have another concern about directors loan shown in the different two documents:

1. Accountant letter confirm investment

states that
"xxx and xxx has directly invested £220,000 into xxx ltd. the loans to the company by the directors are unsecured, interest free, have no fixed repayment term and subordinated in the third party creditors."
it looks no problem

2. in the annual account, note part in creditors

states that
"Other creditors - £216,922

Included in other creditors is a loan owing to the directors, Mr xxx and Mr xxx, of £216,922.

The loan is unsecured, interest free, have no fixed repayment term and subordinated in the third party creditors."

my question is
1. do these two documents against each other, as the amount is different from £220,000 to£216,922.
does this figure should be exact the same?
2. does these statements enough for claim points? anything else need the accountant to mention about director loan?

thanks in advance

thanks

Not sure from immigration perspective but, initial investment of £220K could be different from amounts shown in other creditors in your accounts... Just ensure to ask your accountant to give you a breakdown of other creditors and attach it with your application form.. It could be that there are some adjustments done in your accounts and are showing a debit balance on any liabilities account, which in turn is showing different amount on your accounting yearend.

[zimba]

1. do these two documents against each other, as the amount is different from £220,000 to£216,922.
does this figure should be exact the same?
2. does these statements enough for claim points? anything else need the accountant to mention about director loan?

Nowhere in the rules an accountant letter for investment is required. Also it is NOT an acceptable evidence of investment. Accountant's letter has no bearing on proving your investment according to the rules.

You must submit 3 things based on the rules:

- Business bank statements showing investment came from you directly to the business account
- Director's loan agreement with the required terms
- Company accounts showing the Director's loan under your name (your looks fine)

The values given on these three documents must match

[chy_55223]

You must submit 3 things based on the rules:

- Business bank statements showing investment came from you directly to the business account
- Director's loan agreement with the required terms
- Company accounts showing the Director's loan under your name (your looks fine)

The values given on these three documents must match

You must submit 3 things based on the rules:

- Business bank statements showing investment came from you directly to the business account
- Director's loan agreement with the required terms
- Company accounts showing the Director's loan under your name (your looks fine)

The values given on these three documents must match[/quote]

Thanks you Zimba

I see, the letter is just an extra info from the accountant.if not acceptable i will not submit then.

BUT, the problem is my bank statement is £220,000 (also same as director loan agreement amount) shown we transferred from our personal account, the annual accounts however showes £216,922. My accountant said there was some adjustment as you have some expense deducted from the loan. so he said directors' account value is not match the amount we transferred.

my question is

1.Will HO reject us as the value is not match on the annual accounts and bank statement?
2.if the accountant can fix this to match the value, but the first 2 years annual account already been submitted to company house or other authorities, Can we still change the annual account figures?

Zimba thanks for your input

[zimba]

You just need 200K to qualify. Showing you transferred more is not a problem. Just fix the number in the accounts and the agreement to be 200K. You should be fine

[chy_55223]

You just need 200K to qualify. Showing you transferred more is not a problem. Just fix the number in the accounts and the agreement to be 200K. You should be fine

Thanks for your input Zimba

I have another question regarding the director loan agreement.

The guidance require the loan should have period.
But my accountant says I still can put "the loan has no fix period" or "the repayment has no fix term."

Is this correct?

[zimba]

The loan period is up to you and as you write it in the loan agreement.
It has nothing to do with your accountant