Late Investment

[HarisM]

Dear zimba88 and other Gurus,

Firstly apologies if this has been answered before!

I have a question regarding investment. I have my extension in April 2017. I had investment of around 22K in start of my business which cover some expenses in the year of 2014. Now i have transferred 55K in my business account from personal account again in December 2016, this money is still in my business account. As i am getting enough turnover to pay salaries and expenses, this money is not used yet.

I am claiming this last investment of 55K only due to some reasons. Is there any issue with this? as i did investment very late and business was not in profit in first year.

Thank you in advance!

[zimba]

No issues as long as the business is genuine

[HarisM]

@zimba88, Thank you!!

[mohsensari]

sorry for my post But I thinks Is related to topic
I am a bit confused , I found this paragraph in Tier-1-Entrepreneur-v18 ,
How the money must be used
Money deposited in a bank account, even if it is in a UK business bank account, is not counted as investment in business. The money should be used in the business, for example to encourage growth or expansion, or to improve services or products
any one can explain it more, thanks

[HarisM]

I am new to this forum, so please correct me if i am wrong.

If you transfer money from your personal account to your Business Account, investment part is done. It is not mandatory to spend all £50K from your business account. But if money is in your personal account that won't be considered as Investment unless you transfer it to your Business Account as Director Loan, with proper Director Loan Agreement.

[zimba]

It is not mandatory to spend the full amount as your revenues might cover all your costs. But simply transferring the money in a business account of an inactive business is not accepted (genuine test)

[samaygrg]

It is not mandatory to spend the full amount as your revenues might cover all your costs. But simply transferring the money in a business account of an inactive business is not accepted (genuine test)

Agreed with Zimba88.

[mohsensari]

many many thanks,
before joining to this group I was blind. I should have joint earlier.

[samaygrg]

10 heads are better than 1 head.
Please, continue sharing your experiences, we all are in the same boat.