Self-Employed proof of Investment

[Camel555]

Dear Gurus and friends, can someone please help me out, I am about to start my action plan on my T1E visa which I got few months back. If I chose to become Self-Employed rather than a director of a company, how will the proof of investment be calculated when the time of extension comes?

Rules are pretty clear for the limited companies but I still haven't found what exact evidence would be required to submit for self employed people, especially when the self employed people are legally allowed to use their personal bank account for their business needs, although a business account is advised.

[marcnath]

Dear Gurus and friends, can someone please help me out, I am about to start my action plan on my T1E visa which I got few months back. If I chose to become Self-Employed rather than a director of a company, how will the proof of investment be calculated when the time of extension comes?

Rules are pretty clear for the limited companies but I still haven't found what exact evidence would be required to submit for self employed people, especially when the self employed people are legally allowed to use their personal bank account for their business needs, although a business account is advised.

The requirements remain very similar.
You are required to keep separate records for your business for HMRC anyway. So you still need to do annual business accounts, register for PAYE, report to HMRC, etc. So, you can still provide the required documents - unaudited account, accountants report, bank statements, etc.
While you don't need to have separate bank accounts, it will make your life easier both for HMRC and for immigration purposes.

[Camel555]

Thank you for your reply marcnath, you have been very helpful to many members here along with the green mods,

I am just seeing the procedures for National Insurance number, which I think is mandatory to get yourself registered as self employed, so both the NI number and self employment registration can take up to two months each, and although it would have been only 4 months since I would have entered UK (the date that will be taken as my starting point towards 6 months registration rule) to actually start the process of NI, I think I might be on the edge if officials take maximum time to process my applications for NI and self employment, hence, do you or any guru think that ltd company might be a better option because it wont take much time and I wont be needing a NI number to form a company. This little matter is really bothering me. I have read the rules and the date on HMRC and NI letters can be maximum 8 months since your entry. Could be plenty of time on hand, but I don't wan to do last minutes dot come things.

I am just about to start my long journey for Entrepreneurship, just want to ask, is it acceptable here to put your questions on others' threads if your questions relates to the somewhat same topic, or should we always open a new thread,

[CR001]

I am just about to start my long journey for Entrepreneurship, just want to ask, is it acceptable here to put your questions on others' threads if your questions relates to the somewhat same topic, or should we always open a new thread,

Please ask your questions in your own topic, this is to be fair the poster of another topic and to avoid confusion when members respond. You can keep posting all your questions in THIS topic instead of starting a new one with each question.

See the top 25 Qs on the rules, particular point 12, in the link below.

announcements/read-me-getting-started-t ... 24804.html

[Camel555]

Thank CR001, noted

Could you or marcnath pls give your opinions on my question above, meeting the 6 months registration time using self employed versus pvt ltd director?

[marcnath]

Thank CR001, noted

Could you or marcnath pls give your opinions on my question above, meeting the 6 months registration time using self employed versus pvt ltd director?

Have some patience

CR001 replied in the middle of the night, but please don't expect that as a standard

[marcnath]

Thank you for your reply marcnath, you have been very helpful to many members here along with the green mods,

I am just seeing the procedures for National Insurance number, which I think is mandatory to get yourself registered as self employed, so both the NI number and self employment registration can take up to two months each, and although it would have been only 4 months since I would have entered UK (the date that will be taken as my starting point towards 6 months registration rule) to actually start the process of NI, I think I might be on the edge if officials take maximum time to process my applications for NI and self employment, hence, do you or any guru think that ltd company might be a better option because it wont take much time and I wont be needing a NI number to form a company. This little matter is really bothering me. I have read the rules and the date on HMRC and NI letters can be maximum 8 months since your entry. Could be plenty of time on hand, but I don't wan to do last minutes dot come things.

I am just about to start my long journey for Entrepreneurship, just want to ask, is it acceptable here to put your questions on others' threads if your questions relates to the somewhat same topic, or should we always open a new thread,

Have you started the self employment registration process ? While they do say 2 months each, in reality it happens much faster - a matter of weeks. There is no reason to delay that registration.

So go ahead and do your registration. As you rightly pointed out, if you are really approaching the deadline, you can register a company, which just takes a day.

[Camel555]

Hi @ marcnath @ zimba,

Does the shareholdings detail while forming the company matter when the time of extension comes, I am going through the registration process of my company and I am the only shareholder, so does it matter at this stage how many shares I show and how much value I assign to them?

I ask this because the following point of guidance is confusing me a little:

(4) If you have invested by way of share capital, the business accounts must show the shareholders, the amount and value of the shares (on the date of purchase) in your name as it appears on your application. If the value of your share capital is not shown in the accounts, then a printout of the company’s register of members from Companies House must be provided

Can you pls help me understand this point vis a vis my above question

[marcnath]

Hi @ marcnath @ zimba,

Does the shareholdings detail while forming the company matter when the time of extension comes, I am going through the registration process of my company and I am the only shareholder, so does it matter at this stage how many shares I show and how much value I assign to them?

No, it does not.

I ask this because the following point of guidance is confusing me a little:

(4) If you have invested by way of share capital, the business accounts must show the shareholders, the amount and value of the shares (on the date of purchase) in your name as it appears on your application. If the value of your share capital is not shown in the accounts, then a printout of the company’s register of members from Companies House must be provided

Can you pls help me understand this point vis a vis my above question

You can start with 1 GBP when setting up the company and increase it to 50K/200K over the three years of your initial period.