Tier 1 Entrepreneur Extension £200k

[raz93]

Good Day Everyone.

My extension is due in November 2016. Since, i got the initial visa many rules have been changed which has left me bit confused and worried hope any one would be able to suggest something.

I initially applied for Tier 1 Entrepreneur Visa (£200k route) with my father as partner (to form entrepreneurial team) and successfully got the visa in July 2013. At that time we applied on the basis of a commercial property we bought for £218,000 for Machinery Export Business in which we were going to invest more for stock but because of market conditions we were unable to continue so we stopped it. We have sold this property in April 2016.

In February 2014, we invested in another business plan(convenience store) in which we invested another £170,000;
* Paid £90,000 for the shop property.
* Paid £60,000 for business (including fixtures).
* Paid £15,000 for stock.
Property has been held on our personal names (50% my name and 50% my father's name) but the business is bought by our new set-up Limited Company. Property is only used by the company for retail business. We are both directors and shareholders of this company. Since, company has hired total 70 hours per week worth 4 part-time employees till today (about 2.5 years).

In March 2015, we invested again in another business(convenience store) in which we invested another £168,000;
* Paid £88,000 for the shop property and fixtures.
* Paid £55,000 for the business.
* Paid £25,000 for the stock.
This Property has been held on my father's personal name and the business is bought by our another new set-up Limited Company. Property is only used by the company for retail business. We are both directors and shareholders of this new company as-well. Since, this company has hired total 77 hours per week worth 4 part-time employees till today (about 1.5 years).

Now, our current investment stands at a total of £338,000 by combining both convenience stores investment and a total of 147 hours per week worth employment created and given to British nationals.

Our extension is due soon and i have recently found out that as Tier 1 Entrepreneur Migrants we are not allowed to buy goodwill as per law change in April 2014.

My question is in our scenario will we be able to use our investments and employment created for our extension application? Also, would we be assessed under new rule changes of April 2014 as we were initially granted visa as per old rule?

This rule change information has left us very confused and worried about our future and investments in UK.

Regards
razzaq

[zimba]

Unfortunately it does not look like that you invested £200K in a way that is acceptable by the rules:
You purchased the properties under your names (not acceptable form of investment)
You paid money to purchase a business and the money went to the previous owner (not acceptable form of investment)

Also given that you took over business, you need to show you increased the position/jobs in the business you taken over by MIN of 2 (e.g if the business had 4 positions, your need to show you created two extra positions and now you have 6) If not, you did not satisfy the job creation requirement either.

[raz93]

Hi zimba,
thanks for replying, don't you think our case should not be assessed under new rule as we got our visa in 2013.

[raz93]

also we paid goodwill to previous owners to leave the property so that we can take over. We established two new limited companies each hiring new staff. Previous owners used to work themselves.

[zimba]

Hi zimba,
thanks for replying, don't you think our case should not be assessed under new rule as we got our visa in 2013.

The purpose of the Tier 1E is not for you to spend your investments on purchasing and acquiring businesses but to invest your cash in them as a director. Rules were clarified to reflect the original purpose of the route.

also we paid goodwill to previous owners to leave the property so that we can take over. We established two new limited companies each hiring new staff. Previous owners used to work themselves.

Not allowed under the current rules. Also paying someone as a 'good will 'is not technically 'investment'

[raz93]

What about the properties and stock bought for the business.??

[zimba]

What about the properties and stock bought for the business.??

You personally purchased those properties, you are the owner not the business. That is not acceptable form of investment.
Stock bought by the business could count

[raz93]

But when we applied initially even then we bought the property on our personal names.

Also, what if we now transferred the properties on companies name??

[raz93]

Or sign a lease for lets say 10years with company to give it all the rights for 10 years ??

[zimba]

If you scored points for investment initially, then why you need to prove your investment it again ??

[raz93]

well we stopped that plan and invested in different businesses. please recheck my first post.

also in worst case scenario if our extension is refused . Do we get any time to wind up everything? selling businesses and properties?

[zimba]

well we stopped that plan and invested in different businesses. please recheck my first post.

It is irrelevant, If you scored points for investment initially there is NO need to score again. Please read the rules

also in worst case scenario if our extension is refused . Do we get any time to wind up everything? selling businesses and properties?

You do not get much time, you become an overstayer and subject to removal

[raz93]

right but how can we prove that we scored points initially.??

[raj.m]

right but how can we prove that we scored points initially.??

You don't need to prove anything. If you showed investment in your initial application, you don't need to prove this again. Please go through the policy guidance and application form otherwise you are just going to get confused.

For now, to answer your question, read K3 and K4 on page 41: https://www.gov.uk/government/uploads/s ... _04-16.pdf

[babaty2k02]

...in order not to be confused, I would like to ask, in your initial application, did you show you have INVESTED or that you have ACCESS to the money (to be invested)?

[raz93]

well when applying for initial visa we applied on the basis of a commercial property we bought on our personal names. So, bascially we claimed for investment and not available money.

[raj.m]

well when applying for initial visa we applied on the basis of a commercial property we bought on our personal names. So, bascially we claimed for investment and not available money.

If you were given points for investment of 200K in the initial application, you don't need to get points for investment again in the extension. When you say you were given points for investment, I hope you mean you were given points for the actual investment and NOT for having access to 200k.

[raz93]

yes thats right.. We were given points for the investment not access. I think HO still wants evidence as theyve written in guidance;

"134. We recognise that, as an entrepreneur, you may have moved on to other activities and no longer be involved in the business in which you initially invested, but we still require this evidence to show that the money was invested."

[raj.m]

yes thats right.. We were given points for the investment not access. I think HO still wants evidence as theyve written in guidance;

"134. We recognise that, as an entrepreneur, you may have moved on to other activities and no longer be involved in the business in which you initially invested, but we still require this evidence to show that the money was invested."

I don't think they want to see the evidence of investment again. If you're no longer involved in the business in which you initially invested, they still want to see that you've been into another business but you don't need to show another investment. Go through K3 and K4 on page 41: https://www.gov.uk/government/uploads/s ... _04-16.pdf

[zimba]

yes thats right.. We were given points for the investment not access. I think HO still wants evidence as theyve written in guidance;

"134. We recognise that, as an entrepreneur, you may have moved on to other activities and no longer be involved in the business in which you initially invested, but we still require this evidence to show that the money was invested."

This is from the rules:

The applicant will not need to provide evidence of this investment as specified in 46-SD (a)-(d) if he was awarded points for it, as set out in Table 5, in his previous grant of entry clearance or leave to remain as a Tier 1 (Entrepreneur) Migrant.

Go See table 5 & 6 in Appendix A here: https://www.gov.uk/guidance/immigration ... attributes

[raz93]

Hi all,
Thank you for helping me in this. I'll try to explain myself more clearer.

* Me and my father applied as entrepreneurial team sharing an investment of £218,000. It was a commercial/industrial property which we had bought 8 months before applying on our personal names.

* We also submitted a letter from accountant explaining that we have had discussions on setting up Machinery Export business on this property we also stated my dad's experience in this field i.e; 35years.

* We applied from Pakistan as i was on Tier4 at that time and my dad was on Business Visit Visa(still valid till 2018).

* We submitted our personal account statements for maintenance. I had about £5000 and my dad had about £40,000.

We got the visa in about 4 weeks time, no interview no hassle.
On basis of this i think we were given points on basis of Investment and not access.

[zimba]

Did you read the rules or not ?

[raz93]

i have zimba88. full 86 page guidance with 245 as well. I think i am just being paranoid. visa anxiety maybe

[raz93]

hi,

Just want to comfirm;

Q1. If you get points awarded for INVESTMESTMENT in your initial application, you don't need to award points again while applying for extension?

Q2. Is it valid even though you have moved on to a different business since?


response much appreciated.

[zimba]

Q1. If you get points awarded for INVESTMESTMENT in your initial application, you don't need to award points again while applying for extension?

That is correct

Q2. Is it valid even though you have moved on to a different business since?

Yes, investment proven once is enough. However rules allow HO to question you again on your investment under the 'genuine entrepreneur test'. You should be able to show that you fully invested money in that business and did not use it in such a way that was unacceptable.