Advice needed

[PoolX1]

Hello Everyone,

I need some advice from you guys regarding my scenario.

I have been in the UK for seven years. I am currently on the entrepreneur visa and it is due for extension in August 2017. When i first got this visa, my chances of extending this visa looked very slim. Mainly because i had some misconceptions regarding the investment.

1) I didn't know that employees salaries (excluding me) counts as investment. I found that a couple of months ago. However i had one employee since i started the business and i now have 2 employees since the last 6 months. I will meet the employees requirement and my investment in terms of employees is estimated to be around £30,000 when the 3 year finishes. The rest i am thinking of investing as director loan. Will that be acceptable?

2) The second misconception i had was and I AM STILL NOT SURE about it. When I initially applied for the visa, my source of funding was from a friend. However he wont be able to fund my investment anymore because of his financial condition. My question is if i invest in my business as director loan, will the UK immigration accept it as my original source of funding was 3rd party funding?

Secondly i also have an option to switch to Tier 2 general visa. I was providing services to this client and now he wants me to work as a permanent employee. He has tier 2 license and is willing to sponsor me but the problem here is i would have to pay some taxes out of my own pocket as my salary would be around 24,000 but my minimum salary according to the immigration rules should be at least 29,000.

Based on the above scenario, what do guys think would be the best option for me? Extending my Tier 1 Ent visa which is a bit complicated or switch to Tier 2 visa? Would really appreciate your help.

Thanks

[noajthan]

What sort of services were provided?
Are you contracting?

You cannot switch to Tier 2 as you are clearly pre-selected for this job. And that makes a mockery of RLMT.

[zimba]

1- You need to invest ALL your money as director's loan, from that you can pay your employees which will be accepted. All money you injected by you in your business can be counted as director's loan.
2- Yes

Tier 2 has its own rules, your employer must go through the Resident Market Labour Test and offer an appropriate salary. Also as 'noajthan' mentioned, you cannot be pre-selected for a role under Tier 2 General as that will defeat the purpose of RMLT !

Also if you are working in capacity of an employee for such company as a contractor, you ARE already in breach of the immigration rules for Tier 1E.