Clarification on FPS date, Direcotrs loan & accounts

[nbhatt]

Hi

I have 2 queries in regards to Director's loan and Director's FPS can you please help.

1. During my initial 50 K application I couldn't open any business bank account as my visa was expiring. Not a single bank was ready to open a business bank account and I had no other option then to trade from my personal account.

I got my visa after 1 year and therefore all the business expense was from my personal bank account.

When I got Tier 1 visa, immediately I approached a bank and managed to open business bank account in the 2nd year.

10,000 GBP was already spent in the 1st year and was shown in the accounts as business expense therefore I transferred the balance of 40,000 GBP in my business bank account. If somebody could clarify that the investment made in the form of director's loan should be 40,000 because 10 K wasn't transferred from personal to business account or will it be a loan of 5ok?

2nd Question:

FPS - As a director I have only withdrawn 5K per year to save on corporation tax ,there is no tax, NI on my salary. In this case do I still have to provide FPS and payslips or do I only need to provide for those employees who I am claiming points for?

Many Thanks

[marcnath]

Hi

I have 2 queries in regards to Director's loan and Director's FPS can you please help.

1. During my initial 50 K application I couldn't open any business bank account as my visa was expiring. Not a single bank was ready to open a business bank account and I had no other option then to trade from my personal account.

I got my visa after 1 year and therefore all the business expense was from my personal bank account.

When I got Tier 1 visa, immediately I approached a bank and managed to open business bank account in the 2nd year.

10,000 GBP was already spent in the 1st year and was shown in the accounts as business expense therefore I transferred the balance of 40,000 GBP in my business bank account. If somebody could clarify that the investment made in the form of director's loan should be 40,000 because 10 K wasn't transferred from personal to business account or will it be a loan of 5ok?

Logically, you have invested 50K. Now the question is how you account for it to meet the evidence required by HO.
I am assuming you have a limited company and it was registered before you started spending the money ?
There is unfortunately an odd rule that for DL, you need to show bank statements of your business account, which you can't do for the 1st 10K.
One way of getting around that would be to structure your investment as 10K in shares and 40K in DL. So, for the 10K, you don't need to provide bank statements.

2nd Question:

FPS - As a director I have only withdrawn 5K per year to save on corporation tax ,there is no tax, NI on my salary. In this case do I still have to provide FPS and payslips or do I only need to provide for those employees who I am claiming points for?

Many Thanks

You only need to provide the documentation for the employees you are claiming points for.

By the way, don't keep starting a new post for every question unless it is totally unrelated. It is easier to continue in a single post on all matters concerning your renewal application so that people who want to help can have the full background.

[nbhatt]

Hi All,

I need some clarification on below points:

1. FPS date - My accountant has opted for quarterly PAYEE to HMRC, in this case HMRC receives PAYE on quarterly basis and not monthly basis. What should be the FPS date ? should it be monthly or the date when HMRC received PAYE amount please clarify.

2.Director's loan - In the 1st year I had to operate from personal account as my visa was rejected and later I had won the appeal. Due to visa expiry not a single bank was ready to open a business bank account so I had to operate from my personal account. In this twilight period of 1 year from the date of application to getting visa I had spent 10 K. So from 50 K - 10 K was spent and as a result I had only transferred 40 K in business bank account. After reading the guidance I understand that loan transaction should be readily identifiable from personal to business bk ac and it only showed 40 K. I again injected 10 K more into my business account to clearly show 50 k of fund transfer.

In this case am I right in saying that during year end account Director's loan will be 50 K and management account it will be 60 K?

Do I need to prepare 2 different loan agreements or just 1 with 60 K will suffice?

3.is it necessary that accountant should sign each and every page of accounts or just 1st page is enough?

Many thanks in advance

[marcnath]

Hi All,

I need some clarification on below points:

1. FPS date - My accountant has opted for quarterly PAYEE to HMRC, in this case HMRC receives PAYE on quarterly basis and not monthly basis. What should be the FPS date ? should it be monthly or the date when HMRC received PAYE amount please clarify.

HMRC requires that FPS is always submitted on or before the pay day. Assuming you pay your employees monthly and not quarterly, your accountant would have submitted the FPS monthly. Payment of PAYE to HRMC can still be quarterly.
Anyway, have your asked your accountant for the FPS documents ? What did they give you ?

2.Director's loan - In the 1st year I had to operate from personal account as my visa was rejected and later I had won the appeal. Due to visa expiry not a single bank was ready to open a business bank account so I had to operate from my personal account. In this twilight period of 1 year from the date of application to getting visa I had spent 10 K. So from 50 K - 10 K was spent and as a result I had only transferred 40 K in business bank account. After reading the guidance I understand that loan transaction should be readily identifiable from personal to business bk ac and it only showed 40 K. I again injected 10 K more into my business account to clearly show 50 k of fund transfer.

In this case am I right in saying that during year end account Director's loan will be 50 K and management account it will be 60 K?

Do I need to prepare 2 different loan agreements or just 1 with 60 K will suffice?

The DL will still be 60K in my opinion - but your accountant can be the best judge. However, I can't see why there would be two different amounts - on in DL and the other in the accounts.

3.is it necessary that accountant should sign each and every page of accounts or just 1st page is enough?

Many thanks in advance

No