Investment directly from Personal account

[ajaypratap11]

Hello respected zimba and senior members
Please advice me regarding the money i paid directly personal account. I bought machines for my business from my personal account. I have all invoices. Please make me clear it is acceptable as investment by home office ?

No it is not acceptable if you are applying via DL. As other pointed out, money must be transferred to the business first before being spent

Hi Zimba,

I have same issue regarding the investment, i have invested 25K from Personal account and the reason is i bought franchise and on that time account was not yet opened and i have to secure the territory otherwise i had to lose the territory.

can i write a cover letter for this and attached the invoices.

Please advise....

Thanks

[Jazz2007]

Dear Ajay,

Logically, Company has to invest not you.

As a director, You can invest into Company Business Account then to invoices or other expenses.

Even if you mention this in Cover Letter its not going to help as HO is specific about it and rely on Rules only!!!

Anyhow, Money paid to previous owner is not counted towards Investment.

Sort out this issue in TIME...

[zimba]

No. The rules do not recognize this as investment. This is normal practice in the business world but NOT ACCEPTABLE under Tier 1E rules.
You either follow the rules or fail to extend, no letter or other document gonna help you.

[ajaypratap11]

No. The rules do not recognize this as investment. This is normal practice in the business world but NOT ACCEPTABLE under Tier 1E rules.
You either follow the rules or fail to extend, no letter or other document gonna help you.

Hi Zimba,

Thank you for your reply.

Unfortunately i have posted my application last week but my solicitor said it should be fine.

Please advise what i need to do.

I am very worried now.

Thanks

Kind Regard's
Ajay

[noajthan]

Nothing to be done about your case if application has already been filed.

Suggest formulate a Plan B.
And if solicitor is not too familiar with whatever other visa route you may look at then suggest find one who is both qualified and experienced.

[ajaypratap11]

Thank you

Nothing to be done about your case if application has already been filed.

Suggest formulate a Plan B.
And if solicitor is not too familiar with whatever other visa route you may look at then suggest find one who is both qualified and experienced.

Thank you for your advise.

Any senior member please advise!

[RIYA1234]

According to me guidance changed on 2016. I f you see 2015 guidance there director loan definition is different from 2016. In think if you invested before Nov 2016 its acceptable from personal account as well.
2014 and 2015 guidance:
If you have made the investment in the form of a director’s loan, it must be shown in the
relevant set of accounts provided, and you must also provide a legal agreement, between
you (in the name that appears on the application) and the company.
This agreement should show:
 the terms of the loan;
 any interest that is payable;
 the period of the loan; and
 that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated
in favour of third-party creditors, we will not accept the loan for the award of points

2016 guidance:
iii. Director’s loan
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). The statement(s) must clearly show the
transfer of this money from you to your business. You must also provide a legal
agreement, between you (in the name that appears on your application for leave) and the
company.
This agreement must show:
 the terms of the loan;
 any interest that is payable;
 the period of the loan; and
 that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated
in favour of third-party creditors, we will not accept the loan for the award of points.

Please check home office site. In my initial application I invested from personal account and it was accepted. My company is limited company.

[zimba]

According to me guidance changed on 2016. I f you see 2015 guidance there director loan definition is different from 2016. In think if you invested before Nov 2016 its acceptable from personal account as well.

This is a great myth. You must abide by the most recent rules when you apply unless specified otherwise.

[RIYA1234]

Dear Zimba88,
I am telling from my experience that i invest from personal account in my initial application in 2013 and it was accepted.Because there is no rule saying investment should be from business acccount not from personal account. In 2016 guidance i can see in director loan they mentioned clearly , about transaction should be applicant business bank statements.

[awan905]

HO will not accept your application and they will refuse it. Kindly check my case,

http://www.immigrationboards.com/uk-tie ... 16563.html

[zimba]

Dear Zimba88,
I am telling from my experience that i invest from personal account in my initial application in 2013 and it was accepted.Because there is no rule saying investment should be from business acccount not from personal account. In 2016 guidance i can see in director loan they mentioned clearly , about transaction should be applicant business bank statements.

When did they accept it from you ? In 2013 ???

[ajaypratap11]

HO will not accept your application and they will refuse it. Kindly check my case,

http://www.immigrationboards.com/uk-tie ... 16563.html

Hi Awan,

Thank you for your reply.

I read all thread, in your case you had company B as well which you had invested 50K through your business account.

But in my case i don't have any choice to show that i have invested 50k through my business account.
I have invested 27k in company A (All from business account) and 33k in company B (25k from Personal account and rest of the 8k from Business account.

I tried to open business account before buying franchise but bank declined to open account they said first sign the franchise contract then they will open the account. so on that i did not had any choice and was worried about the territory as well.

Shall i invest more money in company B to reach 50K on safer side and will it be counted if i submit my application again.

Please advise me as per your personal experience, i know you had gone through all of this.

Many Thanks

[awan905]

HO doesnot accept franchises or if money is going to previous buyer. In my case, i didnot show the investment of company B in first application, however in 2nd application I showed it.

It is better to inject 25k again (from personal to business account) and also start preparing for fresh application because 99% chance is this that your application will get rejected.

[ajaypratap11]

HO doesnot accept franchises or if money is going to previous buyer. In my case, i didnot show the investment of company B in first application, however in 2nd application I showed it.

It is better to inject 25k again (from personal to business account) and also start preparing for fresh application because 99% chance is this that your application will get rejected.

Hi Awan,

As per the policy guidance franchise can be accepted and on other way they mentioned money going to previous owner cannot be counted in investment but in my case i did not bought the existing business. i am first person who started franchise in that territory and no one was working before me with same company. i am the only person who started franchise business in that territory. for example if someone was running franchise previously and i bought that existing business then i understood it cannot be counted in investment.

But on safer side i will inject 25k in my company and is it mandatory to spend all the money in the business or i can keep that amount in business account?

And i am putting that amount after completing my 3 years is it problem?

Thanks for your help

[awan905]

There would be any issue if you inject 25k after 3 years and keep the money in business bank account.
Kindly check about franchise business,because I cannt give clear guidance about this.

[sskhalsa]

Hi everyone

Can period of the loan be unlimited ?

Thanks

[ajaypratap11]

No. The rules do not recognize this as investment. This is normal practice in the business world but NOT ACCEPTABLE under Tier 1E rules.
You either follow the rules or fail to extend, no letter or other document gonna help you.

Dear Zimba88,

As you know that i have invested 25k Franchise amount from my personal account and home office do not count that amount as investment.

If i invest 15-20k now after completing my 3 years initial visa, will this amount will be counted.

will i be able to submit application again with the new investment of 15-20k?

Please really need advise to get out from this problem.

Thanks in Advance.

[zimba]

Investment must be done during the initial period as per rules.

[ajaypratap11]

According to me guidance changed on 2016. I f you see 2015 guidance there director loan definition is different from 2016. In think if you invested before Nov 2016 its acceptable from personal account as well.
2014 and 2015 guidance:
If you have made the investment in the form of a director’s loan, it must be shown in the
relevant set of accounts provided, and you must also provide a legal agreement, between
you (in the name that appears on the application) and the company.
This agreement should show:
 the terms of the loan;
 any interest that is payable;
 the period of the loan; and
 that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated
in favour of third-party creditors, we will not accept the loan for the award of points

2016 guidance:
iii. Director’s loan
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). The statement(s) must clearly show the
transfer of this money from you to your business. You must also provide a legal
agreement, between you (in the name that appears on your application for leave) and the
company.
This agreement must show:
 the terms of the loan;
 any interest that is payable;
 the period of the loan; and
 that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated
in favour of third-party creditors, we will not accept the loan for the award of points.

Please check home office site. In my initial application I invested from personal account and it was accepted. My company is limited company.

Hi RIYA1234,

Thank you for your reply.

Yes i have invested before Nov 2016.

Where can i find the old policy guidance 2014-2015?

[zimba]

Please read carefully
You MUST comply with the most recent rules and guidance when you apply UNLESS otherwise stated. You will risk being refused an extension of leave or fail to comply with your visa requirements if you follow any old guide/rules

[ajaypratap11]

Please read carefully
You MUST comply with the most recent rules and guidance when you apply UNLESS otherwise stated. You will risk being refused an extension of leave or fail to comply with your visa requirements if you follow any old guide/rules

Hi Zimba,

I understand your point but in this situation i have no option.

And if some one had invested and in old policy guide nothing was mentioned like you have to pay from business account or personal account. Then i think i can mention in admin review

[noajthan]

Some changes do come with a transitional arrangement.
If there's no transitional arrangement for a particular change then its going to be no dice.

[samaygrg]

Hi everyone

Can period of the loan be unlimited ?

Thanks

It can be but point is with this term, does your DL agreement's profile look any better??? No, in my opinion.

[ajaypratap11]

Hi,

Today i have received letter from Home office that they have not received my Biometric Card and they mentioned to send BRP with in 10 days otherwise application will be invalid.

But i submitted my Biometric along with my Passport and Application.

Please advise Senior Guru...

Thanks

[zimba]

Please contact UKVI and inform them of this.

https://www.gov.uk/contact-ukvi/visas-and-settlement