Director's Loan agreement and Fund transfer

[marcnath]

Hi Team,

I have established my limited company, and I intend to take salary from my company as an employee performing consultation services, the money I will take will be from the business income and not from the money I have invested on the company in form of director's loan,
i.e. Year 1,
I have a consulting company and I will invest 100k on the company, and then I get sales of 80K, I get paid during the year (monthly basis) a total of 12K (1K per month),

So end of year 1:

Cash in = 100K +80K=180K.
Cash out = Other Employee salary (30K) + Director salary (12k) + company expenses (18K)=60K.
End of the year profit= 80k-60k=20k

Could you please confirm that the above should be acceptable, or I should not get any payment from my limited company as a director/employee?

Thanks in advance,

Best Regards.

You should no problems until your withdrawals (salary/dividends) exceed 80K in this example.

[tier1entrepreneur-A]

Many thanks for your reply, it's much appreciated,

In case the example become as below:

So end of year 1:

Cash in = 100K +50K=150K.
Cash out = Other Employee salary (30K) + Director salary (12k) + company expenses (18K)=60K.
End of the year profit= 50k-60k=-10k (loss),
Total money on the company bank account = 100k-10k = 90k,

Does the above will be acceptable?

Thanks in advance,

Best Regards.

[marcnath]

Many thanks for your reply, it's much appreciated,

In case the example become as below:

So end of year 1:

Cash in = 100K +50K=150K.
Cash out = Other Employee salary (30K) + Director salary (12k) + company expenses (18K)=60K.
End of the year profit= 50k-60k=-10k (loss),
Total money on the company bank account = 100k-10k = 90k,

Does the above will be acceptable?

Thanks in advance,

Best Regards.

Sure - why do you think it wouldn't be ok ?

[tier1entrepreneur-A]

Thanks for your confirmation,

I thought it could be an issue if the business doesn't make enough profit to cover all business expenses including my salary, in which case I will use part of the investment (director's loan, i. e. 100k as per the example above) to cover the business loss (i.e. 10k as per the example above),

So I thought they may be looking at that time if I get paid any salary or not from my business,

Do you see that nothing to worry about on the above case?

Thanks in advance.

[marcnath]

Thanks for your confirmation,

I thought it could be an issue if the business doesn't make enough profit to cover all business expenses including my salary, in which case I will use part of the investment (director's loan, i. e. 100k as per the example above) to cover the business loss (i.e. 10k as per the example above),

So I thought they may be looking at that time if I get paid any salary or not from my business,

Do you see that nothing to worry about on the above case?

Thanks in advance.

Nothing to worry about

[tier1entrepreneur-A]

Many thanks marcnath for your valuable advice, it's much appreciated,

Best Regards.

[tier1entrepreneur-A]

Hi Team,

My wife and kids already still have a valid dependant visa on my pre Tier 1 visa, I will need to apply for them in the next few months for Tier 1 Entrepreneur dependant visa,

My question is:

With regarding to the documents required to be attached with their application it will be ONLY a copy of my visa/BRP plus a bank statement to cover the maintenance fund required (maintenance fund have been on my account for at least 90 days),

Do I need to submit any other documents related to the money or business?,

Thanks in advance,

Best Regards.

[tier1entrepreneur-A]

Hi Team,

Any advice on the above?

Thanks in advance.

[bizman]

Hi Team,

Any advice on the above?

Thanks in advance.

You need to add documents that will confirm you are still genuinely in business such as CAR, business statement of account etc to confirm you are genuinely in business. Also all other documents requested from the dependant application form.

[tier1entrepreneur-A]

Hi Team,

Any advice on the above?

Thanks in advance.

You need to add documents that will confirm you are still genuinely in business such as CAR, business statement of account etc to confirm you are genuinely in business. Also all other documents requested from the dependant application form.

Thanks bizman,

I didn't transfer all the fund on that business (only 50K so far) due to I will invest the remaining balance later on another business, does this will have any effect?

Thanks in advance.

[tier1entrepreneur-A]

Hi Team,

Any advice on the above?

Thanks in advance.

[marcnath]

Hi Team,

My wife and kids already still have a valid dependant visa on my pre Tier 1 visa, I will need to apply for them in the next few months for Tier 1 Entrepreneur dependant visa,

My question is:

With regarding to the documents required to be attached with their application it will be ONLY a copy of my visa/BRP plus a bank statement to cover the maintenance fund required (maintenance fund have been on my account for at least 90 days),

Do I need to submit any other documents related to the money or business?,

Thanks in advance,

Best Regards.

There is no requirement to provide any documents regarding your business or money for your dependant's visa

[tier1entrepreneur-A]

Hi Team,

My wife and kids already still have a valid dependant visa on my pre Tier 1 visa, I will need to apply for them in the next few months for Tier 1 Entrepreneur dependant visa,

My question is:

With regarding to the documents required to be attached with their application it will be ONLY a copy of my visa/BRP plus a bank statement to cover the maintenance fund required (maintenance fund have been on my account for at least 90 days),

Do I need to submit any other documents related to the money or business?,

Thanks in advance,

Best Regards.

There is no requirement to provide any documents regarding your business or money for your dependant's visa

Many thanks marcnath for your clarification, it's much appreciated,

That will be great, just the three months maintenance fund for them (£1890 for each) in my bank account (in a UK or overseas bank account) along with a copy of my BRP and prove of relation (marriage certificate, kids birth certificate), are there any other documents required?

Thanks in advance.

[kaps84]

Many thanks marcnath for your clarification, it's much appreciated,

That will be great, just the three months maintenance fund for them (£1890 for each) in my bank account (in a UK or overseas bank account) along with a copy of my BRP and prove of relation (marriage certificate, kids birth certificate), are there any other documents required?

Thanks in advance.

Since your dependents are already in UK with you, that's pretty much the required documents.

At most you can include a simple letter from your side confirming your address, your passport number, visa number etc. and stating that your wife and kid(s) were already your dependent and wish to extend their visa as a PBS dependent. This is just an idea, you can re-word. (Please not that such letter is not mandatory though). Just a suggestion as per personal experience.

[tier1entrepreneur-A]

Many thanks marcnath for your clarification, it's much appreciated,

That will be great, just the three months maintenance fund for them (£1890 for each) in my bank account (in a UK or overseas bank account) along with a copy of my BRP and prove of relation (marriage certificate, kids birth certificate), are there any other documents required?

Thanks in advance.

Since your dependents are already in UK with you, that's pretty much the required documents.

At most you can include a simple letter from your side confirming your address, your passport number, visa number etc. and stating that your wife and kid(s) were already your dependent and wish to extend their visa as a PBS dependent. This is just an idea, you can re-word. (Please not that such letter is not mandatory though). Just a suggestion as per personal experience.

Many thanks kaps84 for your advices, it's much appreciated,

Best Regards.

[tier1entrepreneur-A]

Hi Team,

My wife (already dependant on my previous visa) and she is in the UK at the moment, her dependant visa still valid until Nov 2018,

I intend to apply for her to be dependant on my tier 1 Entrepreneur visa, and she will apply from inside the country (within the UK),

My question is:

Did she will need to submit criminal record certificates form the countries she have been resident on in the last 10 years???

Or as she already in the UK, no need to submit these certificates?

Looking forward to hearing from you,

Thanks in advance.

[tier1entrepreneur-A]

Hi Team,

Any advice on the above?

Thanks in advance.

[tier1entrepreneur-A]

Good morning,

Any confirmation that the IHS new fees of £400/year will start from April 2018?,

It has been mentioned that it the fees will increase later this year, does the increase usually happen in April?,

Does they usually give a notice period before the increase date? i.e. one month or so,

As this could cost me an addition fees of £2800 for my dependants,

Looking forward to hearing from you,

Thanks in advance.

[marcnath]

Good morning,

Any confirmation that the IHS new fees of £400/year will start from April 2018?,

It has been mentioned that it the fees will increase later this year, does the increase usually happen in April?,

Does they usually give a notice period before the increase date? i.e. one month or so,

As this could cost me an addition fees of £2800 for my dependants,

Looking forward to hearing from you,

Thanks in advance.

There is no confirmed date and there is nothing magical about April.
Also, I am pretty sure there will be no notice period - does not make sense to just get everyone rushing to pay.
I believe you should be able to pay now and use the IHS number with the application - but for all you know, they could still ask you to pay the difference upon approval.

[kaps84]

but for all you know, they could still ask you to pay the difference upon approval.

Just to add to that, I was asked to pay IHS on the day (right than and there), when I went to submit my dependents initial visa (application was submitted online with no reference to IHS) - So it was most likely a transition period, when the IHS was just introduced.

I was only given the option to pay! (no pay = application withdrawal). Now, as marcnath said, it's good to pay IHS now (when are you planning to apply?), but than HO can ask you to pay the difference later (if applicable).

[bizman]

Just pay when you are to apply. They will definitely give notice period.

[tier1entrepreneur-A]

Hi Team,

I'm a director of my limited company, and I'm wondering if I can pay from my business bank account toward doing a part time MBA study (over 2-3 years, approx £20k in total over the next 2-3 years) to improve my skills, which should be useful for me to be more skilled to run and expand my business, as my education/experiences so far is more technical (Engineering) rather than business,

Does this will be acceptable from the HO as a business related expenses (employee training) after three years from now when I apply for T1E visa extension?

Thanks in advance,

Best Regards.

[tier1entrepreneur-A]

Hi Team,

I'm a director of my limited company, and I'm wondering if I can pay from my business bank account toward doing a part time MBA study (over 2-3 years, approx £20k in total over the next 2-3 years) to improve my skills, which should be useful for me to be more skilled to run and expand my business, as my education/experiences so far is more technical (Engineering) rather than business,

Does this will be acceptable from the HO as a business related expenses (employee training) after three years from now when I apply for T1E visa extension?

Thanks in advance,

Best Regards.

[marcnath]

As with all such cases no one here is likely to be able say if something is acceptable or not by HO.
But from the documents there are couple of relevant issues.
1. This would be a valid business expense and immigration rules don’t dictate what business expense you can and cannot do
2. There is an as yet untested statement that entrepreneur remuneration cannot be counted towards investment- and this could be considered remuneration

So I really can’t see why it should be a problem

[tier1entrepreneur-A]

As with all such cases no one here is likely to be able say if something is acceptable or not by HO.
But from the documents there are couple of relevant issues.
1. This would be a valid business expense and immigration rules don’t dictate what business expense you can and cannot do
2. There is an as yet untested statement that entrepreneur remuneration cannot be counted towards investment- and this could be considered remuneration

So I really can’t see why it should be a problem

Thanks marcnath for your advice, it's much appreciated,

My business should have a revenue - over the year - from which the study fees will be covered, does that still could be considered as "entrepreneur remuneration"?

i.e.
During Year 1 - Business#1:
Director's loan = £50K (investment)
Revenue/income = £50k (Sales/services)
Business expenses (Employee wages, director salary, NIC, Training for employee including my part time MBA) = £35K
End of year 1 balance = £50K + £50K -£35k=£65K,
End of year 1 Profit = £15k

Looking forward to hearing from you,

Thanks in advance.

Best Regards.