Director's loan is BEFORE or AFTER deducting Director salary

[PeterLove2008]

Background: Applying for Tier 1 Ext as 200K

Director's loan is BEFORE or AFTER deducting Director's Remuneration?

Initially I thought the total investment = director's loan MINUS the Director's Remuneration, but today my accountant told me it is AFTER deduction for Director's remuneration. I am confused.
My problem is:
If Before, then I will still have to invest several hundred pounds in cash format.
If After, then it is fine, as above 200,000.

Urgent. Wait online. Many thanks for your assistance!

[zimba]

This is NOT an accounting matter but an immigration rules technicality. Any director remuneration should be subtracted from money invested. If you invested 200K but received 50K remunerations yourself (let's say salary not loan repayment), HO accepts only 150K but from accounting point of view it is 200K invested in the business.

[PeterLove2008]

This is NOT an accounting matter but an immigration rules technicality. Any director remuneration should be subtracted from money invested. If you invested 200K but received 50K remunerations yourself (let's say salary not loan repayment), HO accepts only 150K but from accounting point of view it is 200K invested in the business.

So you mean it is BEFORE deduction then. Anyway, I believe it is BEFORE deduction. So I had chosen to top up the amount a few days earlier. Many thanks!

[Hassan Rasheed]

My solicitor said same , HO will minutes salary taken from Invsted money. accounting point of view this is not case. You getting salary because you working for company as other employees working for company.
Some how i headed in this forum some people pontiff view is if company is in net profit after paying Director salary than salary amount will not be minus.

My Business wa sin profit ,But anyhow to avoid this confusion i cover my salary amount and other bits i simply invested £250K instead of £200K.

So i would suggest better invest more money cover your salary. we don't know exactly how HO consider this.

Thanks
HN

[marcnath]

This is NOT an accounting matter but an immigration rules technicality. Any director remuneration should be subtracted from money invested. If you invested 200K but received 50K remunerations yourself (let's say salary not loan repayment), HO accepts only 150K but from accounting point of view it is 200K invested in the business.

So you mean it is BEFORE deduction then. Anyway, I believe it is BEFORE deduction. So I had chosen to top up the amount a few days earlier. Many thanks!

I am not sure what the BEFORE and AFTER is about.

Here's how it would work. There are two conditions to be met
1) You have transferred a minimum of 200,000 from your personal accounts (has to be clearly identified with your name in the accounts and in the business bank statements)
2) Your investment + any additional money in (sales, grants, investors, bank loans etc.) - any money you took out (salary, dividends, etc.) > or = 200,000.

If you meet those two conditions, you are ok.

[amit8910]

As long as I know and read from this forum.I you transfer 200k from personal a/c to business a/c then it's Investment.

[marcnath]

As long as I know and read from this forum.I you transfer 200k from personal a/c to business a/c then it's Investment.

That was true a few years back. When I did my renewal, that was all I showed.

The updated guidelines has added this condition "‘spent’ excludes spending on:1) your own remuneration," in the Initial Application section under "Access to funds". There is no such condition in the extension section.

I would be interested in knowing if anyone has been rejected because of this.

Strictly speaking, as it is not a condition of the extension, VI has to award points for investment even if you have spent money on remuneration. In case they don't, there is a very high chance you will win on review.

However, they can curtail your original grant of leave because you would be in violation of the condition of the initial grant of leave. And if that is the reason the CW states, then it will stand any challenge.

Bottom line, not worth taking that chance. Make sure you meet the two conditions I outlined earlier.