Clarification required on 3 things

[nbhatt]

Hi,

Can gurus please clarify the following:

1.Management account- My company was incorporated in Nov 2013 so I will provide un-audited accounts from 2013-Nov 2016. My visa is valid until Aug 2017 so I intend applying around 1st week of Aug. Please clarify if I need to submit the management accounts if yes up to which month of 2017?

2.Financial accounts - I have invested in the form of Directors loan . Page 45 of the policy guidance clearly states that if you are relying on funds invested in a business any money you have already spent for business purposes must be shown as investment in your financial accounts. Now my accountant is saying that because it is expense it cannot be shown as an investment. Can someone please clarify how can we show the contradict entry in accounts?

3.UK settled workers- Is passport copies for UK born enough or do we have to provide additional documents like birth certificate etc. page 53 of the guidance clearly states we need to provide birth/marriage certificate of a parent.

Many thanks

[hina_pirzada]

Ans Q2.

The money you have invested must be on the balance sheet under the creditor section and your name must in financial notes write in a manner that Mr ABC unsecured director loan £50,000( for full detail please refer to director loan legal agreement).
Ur accountant looks like stupid (sorry to say) find other accountant who has proper knowledge. If you have invested the money £50,000 and your company sale is £40,000 , so all your expenses showing against your company sale. Another example is If u have invested £50,000 and your sale is £40,000 and ur expense is £50,000 so the balance in your account will be £40,000 at the end of your financial end date.

Ans Q3. Passport copies of the employees is Enough.

Ans Q1. Provide the details how u invested means have u invested within your current financial year. Because ur financial year start from 1 Dec till 30 Nov every year. If you invested between 1 Dec 2016 - 30 Nov 2017 period so can prepare management accounts up to the period of 1 Dec 2016 - 31 July 2017. If you have invested partially in previous years so you must include previous unaudited accounts with your name mention in financial notes.

[marcnath]

Hi,

Can gurus please clarify the following:

1.Management account- My company was incorporated in Nov 2013 so I will provide un-audited accounts from 2013-Nov 2016. My visa is valid until Aug 2017 so I intend applying around 1st week of Aug. Please clarify if I need to submit the management accounts if yes up to which month of 2017?

If all your investment has been done prior to Nov 2016, you only need the accounts until Nov 2016. You don't need any additional management accounts.
In fact, you only need to submit only the last year's un-audited accounts. That will show your total investment.

2.Financial accounts - I have invested in the form of Directors loan . Page 45 of the policy guidance clearly states that if you are relying on funds invested in a business any money you have already spent for business purposes must be shown as investment in your financial accounts. Now my accountant is saying that because it is expense it cannot be shown as an investment. Can someone please clarify how can we show the contradict entry in accounts?

Your accountant is right - an expense cannot be shown as an investment. That particular clause applies to the case for expenses you may have spent on the business before you actually transferred the money - e.g. before your started a bank account or the expenses related to incorporation of the company.
In such cases, if you want to include that money as part of your 50K/200K, then you they need to be still recorded in your accounts as an investment, even though you have not actually transferred the money into your company's bank account.
This does not normally happen or it is for very small amounts such as your company registration cost and should not be an issue.

3.UK settled workers- Is passport copies for UK born enough or do we have to provide additional documents like birth certificate etc. page 53 of the guidance clearly states we need to provide birth/marriage certificate of a parent.

Many thanks

The list of documents in the guidance is "one of the following". So, if you have the passport copy, you don't need any of the others.

[marcnath]

Ans Q1. Provide the details how u invested means have u invested within your current financial year. Because ur financial year start from 1 Dec till 30 Nov every year. If you invested between 1 Dec 2016 - 30 Nov 2017 period so can prepare management accounts up to the period of 1 Dec 2016 - 31 July 2017. If you have invested partially in previous years so you must include previous unaudited accounts with your name mention in financial notes.

I am sorry to say that this is plain wrong advice. I have replied separately with the minimum document that is needed.

[hina_pirzada]

Dear Marcnath,

Can u please correct me where I am wrong because he didn't mention the investment period. If he invested with one financial year so he only needs that year audited accounts. If he invested partially in all three years so he needs to all three years unaudited accounts and if he invested within the current financial year so he needs to submit management accounts. The dates I mention becuase he said his financial year ends in November. So if he invested between 1 Dec 2016 - 31 July 2017 so he need management accounts because he is going to apply visa in August.

[marcnath]

Dear Marcnath,

Can u please correct me where I am wrong because he didn't mention the investment period. If he invested with one financial year so he only needs that year audited accounts. If he invested partially in all three years so he needs to all three years unaudited accounts and if he invested within the current financial year so he needs to submit management accounts. The dates I mention becuase he said his financial year ends in November. So if he invested between 1 Dec 2016 - 31 July 2017 so he need management accounts because he is going to apply visa in August.

This is what is plain wrong - "If he invested partially in all three years so he needs to all three years unaudited accounts".

Neither the law nor the guidelines ask for anything more than one set of accounts.

By giving such wrong advice, you are only confusing people who need help in this forum and you are adding additional burden on them.

[hina_pirzada]

Ok I am not going in any debate and the people are not fool to follow someone advise without study. May be my understanding was not right if this will be the case so i take my hands off. But my question is if he invest £20K in first year , £15K in second year and £15K in third so how we prove £50K investment?

Only one sanerio is the all 50K loan will show in most recent accounts which is submitting with application.

[marcnath]

Ok I am not going in any debate and the people are not fool to follow someone advise without study. May be my understanding was not right if this will be the case so i take my hands off. But my question is if he invest £20K in first year , £15K in second year and £15K in third so how we prove £50K investment?

Only one sanerio is the all 50K loan will show in most recent accounts which is submitting with application.

@hina_pirzada - people come here and ask questions because they need help. If they were confident enough and they were absolutely sure they knew what to do, then they don't need to ask.

When someone replies with advice, then the natural conclusion is that the person replying knows better.
Nothing stops you from sharing your experience and expressing your opinions. But, please make sure you add something like "in my opinion" or "to my best knowledge". The way you have been answering, it conveys the impression that you are speaking with expert knowledge.

You are right that, at the end of the day, it is the applicant's own responsibility and they should study all the replies. But I just feel that those of us who are replying should not be adding more work to the applicants if we can help it.

Now coming to your specific question. It is clear you do not have an understanding of basic accounting. Investments made in Year 1 does not disappear from the balance sheet in Year 2. They stay there as a liability in the balance sheet. So, in your scenario, the Year 1 accounts will show DL of 20K, Year 2 accounts will show DL of 35K and Year 3 will show DL of 50K. Which means it is sufficient to provide the Year 3 accounts.

[nbhatt]

marcnath Many Thanks for your advice , I much appreciate it.

Ok I am not going in any debate and the people are not fool to follow someone advise without study. May be my understanding was not right if this will be the case so i take my hands off. But my question is if he invest £20K in first year , £15K in second year and £15K in third so how we prove £50K investment?

Only one sanerio is the all 50K loan will show in most recent accounts which is submitting with application.

@hina_pirzada - people come here and ask questions because they need help. If they were confident enough and they were absolutely sure they knew what to do, then they don't need to ask.

When someone replies with advice, then the natural conclusion is that the person replying knows better.
Nothing stops you from sharing your experience and expressing your opinions. But, please make sure you add something like "in my opinion" or "to my best knowledge". The way you have been answering, it conveys the impression that you are speaking with expert knowledge.

You are right that, at the end of the day, it is the applicant's own responsibility and they should study all the replies. But I just feel that those of us who are replying should not be adding more work to the applicants if we can help it.

Now coming to your specific question. It is clear you do not have an understanding of basic accounting. Investments made in Year 1 does not disappear from the balance sheet in Year 2. They stay there as a liability in the balance sheet. So, in your scenario, the Year 1 accounts will show DL of 20K, Year 2 accounts will show DL of 35K and Year 3 will show DL of 50K. Which means it is sufficient to provide the Year 3 accounts.

[marcnath]

You are welcome.

And apologies for the side discussion on your post thread.