Tier 1 (Entrepreneur) - Declaration for funds

[chicco19]

Hi,

Under (57) it states:

'In this case you must also provide a declaration that the money is available to you and your entrepreneurial team member (if applicable), or to the business that you or your entrepreneurial team are running. You must provide a declaration from each contributor of funds, together with confirmation that the declarations are valid.'

Do you need this declaration if the money has been held in a business bank account under my name for longer than 90 days?

Thanks

[marcnath]

Hi,

Under (57) it states:

'In this case you must also provide a declaration that the money is available to you and your entrepreneurial team member (if applicable), or to the business that you or your entrepreneurial team are running. You must provide a declaration from each contributor of funds, together with confirmation that the declarations are valid.'

Do you need this declaration if the money has been held in a business bank account under my name for longer than 90 days?

Thanks

You did not include the 1st line in that paragraph which makes it clear this is for third party funding i.e. not money that you have.

[chicco19]

The money was originally from a third party yes but the business I am a director of has now held it for longer than 90 days (and will continue to control that money).

Does this make a difference?

[marcnath]

The money was originally from a third party yes but the business I am a director of has now held it for longer than 90 days (and will continue to control that money).

Does this make a difference?

Yes, it does.

It also is very useful if you give the context.

I am guessing you are going to make a new application ?

When you say "held it longer" - what does that mean ? It has been lying unused in a business account for 90 days ?

If the money is already invested in the business, then the evidence requirements are different.

look at the section - 1. Previous investment - funds already invested in UK business

There is no relevance to 90 days here.

[chicco19]

I will be making a new application yes as part of an entrepreneurial team (the team member applied last year with my name on the application).

The money has been lying unused in a business account for 90 days yes.

46. outlines the below so I was looking to go down the path of 'access to funds' (with the funds being in the financial accounts of a UK business... (46.2)). This would mean no audited / un-audited accounts are required for the application (money saving!).

46. Where you are seeking to be awarded points on the basis of access to funds, we may ask you to demonstrate that the funds you have used to apply remain available to you beyond the date of your application. The funds must continue to be available to you until they are invested in a business or businesses, or spent for the purposes of your business or businesses. ‘Available to you’ means that the funds must be in one of the following:
1) in your own possession,
2) in the financial accounts of a UK business which you are running as a member of a partnership, or as a director, or
3) available from the third party or parties named in your application (if applicable).

[marcnath]

If you just want to show access to funds, then yes, you can do so. And since it has been in a business controlled by you for more than 90 days, it is no longer third party funds - the origin does not matter.

However, you should consider getting points for investment instead. It appears that you have business that has not really started activities, so very few transactions. You will be able to find accountants who will do the accounts for you for a few hundred pounds when there is such a low activity.

And anyway, you will need to spend that money (and possibly more) at the extension time.Something you will not need to do if you already get points for the investment now.