Investment Query

[itk]

please can senior members and gurus in the house help me solve this query. I want to find out if it's only director's loan and share certificate that is acceptable as evidence of investment by HO. I have done my investment by direct injection of fund into my business and someone said I should've done my investment through share certificate or DL. I am due for extension in couple of months away, any advice will be highly appreciated. thanks

[zimba]

When a director transfers money or injects cash to his/her business, s/he effectively loaned money to the business which they can take back tax free later when the company generates revenue. This is called a Director's Loan. This is what you did already.
However HO requires you to to prepare a specific loan agreement which makes your loan to be unsecured & subordinated to 3rd party investors.

This simply means that if you borrow money from other sources (credit card, other loans, ... etc) , you MUST pay ALL those debts first before you can take your money back. Also in the event of bankruptcy or insolvency, you are also forced to pay all the creditors first if your company has any liquid asset and the debt to you will be the LAST to be paid back if any money is left.

You you need to prepare a loan agreement as required in the guide, provide business bank statements showing you transferred the money to the company and submit accounts showing that there is director's loan under your name. The guide is very clear on this

[itk]

Thank you Zimba, I did not transfer all 50k at once, I did the transfer in different transactions. do I need to prepare the loan agreement to reflect the different dates these transactions occurred. thanks

[zimba]

Thank you Zimba, I did not transfer all 50k at once, I did the transfer in different transactions. do I need to prepare the loan agreement to reflect the different dates these transactions occurred. thanks

No, prepare one that covers 50K loan in total

[itk]

Thank you Zimba once again.
my accountant is having a contrary view as I explained to him. He is pointing me to section 138.4 of the policy guidance
[color=#FF0040]"When evidencing the investment: (1) The audited or unaudited accounts must show the investment in money made directly by the you, in your own name or on your behalf (and showing your name)".[/color] I am a bit confused here with regards to where in the unaudited account my name is supposed to be showing as per the policy guidance.

secondly, I made my investment in my second and third year, the second year account is already submitted and the third one is due by December. Do I still need to submit to HO the first year account when investment wasn't made or the two sets of account for the years the investment was made that need to be submitted to HO. many thanks

[zimba]

The way you need to prepare accounts has been discussed many times on the forum. See: http://www.immigrationboards.com/uk-tie ... 16162.html
or search the forum for many more discussions

You can prepare your next accounts as required by HO and only submit that one.