Urgent - Fresh application after AR refusal

[seemadanny]

Hi All,

I am silent reader of this forum and now I am really looking for expert input for my application. I I applied for Tier 1 - Entrepreneur extension in May 2017. Refused in Nov 2017 as investment was made from personal bank account instead of business bank account. Submitted a directors loan agreement with proof of investment and personal bank statement. As in the policy guidance when the visa was granted in 2014, we do not need to show readily identifiable transactions in the business bank statement. We didn't check the latest policy guidance and had to invest before business bank account was open as we would miss the business deal. So invested from my personal account in a hurry. The required documentations according to the policy guidance in April / May 2017 were, 1. Directors loan agreement 2. Proof of investment. Both were provided, with directors loan agreement, but refused. Submitted an AR, got refused / decision was maintained. Submitted a fresh application explaining the situation again with the same condition. I plan to vary the application that I submitted after AR refusal.

So I am looking for advice in this forum, my question is, can we change the investment as as share capital, declare that in companies house and show that as investment with proof of investment (invoices under business name that we got already) overriding the directors loan. We haven't filed the annual return yet for the business year 2016/2017 as its a brand new business due to be filed in June 2018.

I see some valuable input from Zimba88 and marcnath and other seniors. Could you please give your opinion and advice that will definitely help me in progressing in my application. Your time and advice is highly appreciated at this time of urgency. Thank you!

[zimba]

The current guide says:

(ii) where the investment was made after 19 November 2015, the investment must be shown
through readily identifiable transactions in your business bank statements, which must clearly
show the transfer of this money from you to your business

So your fresh application should be fine, assuming you invested before that date

[seemadanny]

Hi Zimba, yes that's right and I invested in 2016, but I haven't invested from business account and invested from personal account. In my case I bought stock from another company, paying directly from my personal account to that company. I haven't got readily identifiable transactions from business account, I have only from personal account. I have the invoices for purchasing stock / equipments. I submitted the directors loan agreement with this.

***Correction on my very first message - The required documentations according to the policy guidance in April / May 2014 were, 1. Directors loan agreement 2. Proof of investment.

[zimba]

What did you exactly buy and invest in ? Buying shares of another company is not an investment in your company

[seemadanny]

I bought retail stock / tangible goods and equipments , not company shares. Paid by bank transfer from my personal account to another company. These are invested in the form of stock in my new company.

[marcnath]

I bought retail stock / tangible goods and equipments , not company shares. Paid by bank transfer from my personal account to another company. These are invested in the form of stock in my new company.

What is the date of investment as per the accounts and Director loan ? Given that readily identifiable transactions are not required under the latest rules, as long as your Dl agreement is before 19 nov 2015 and the accounts that show the investment cover a period before that date you should meet the requirement.
You should have originally claimed it as money spent for the business, which may not have needed the bank statements- You may still be able to do that but I need to look at the rules again when I get back to my computer.
Part of your problem is the terminology. You invest INTO a business and you spend FROM a business. In your original post, you talk about investing from your personal account when you meant spending from your personal account.

[marcnath]

To add on, the actual date you spent the money (bought stock) does not matter

[seemadanny]

Thanks marcnath! My answers are inlined.
What is the date of investment as per the accounts and Director loan ? 01-08-2016.

My DL agreement is after 2015. It’s actually in 2016 as stated above. So I believe I am not covered in that.

So do you think converting the DL amounts as share capital and providing the invoices under my business name as supporting document for proof of investment will help me ? In which case the current share capital value is £1. I have 8 shares and another partner (who is not part of entrepreneurial team) has 2 shares. So if we allot more shares and raise share capital proportionally, does it help me. Thanks

Just read your added reply.
***Yes, you are right regarding terminology.

The business was registered in July 2016, so I don’t think we can back date the DL .

[seemadanny]

Zimba any further advice from you ? I am really waiting for one of you guys’ expert advice for my case please

[zimba]

You should have made the required changes before applying for a fresh application as it might be late now. I suggest to change the accounts to share option and send the updated documents to HO with a covering letter as soon as possible.

[marcnath]

You should have made the required changes before applying for a fresh application as it might be late now. I suggest to change the accounts to share option and send the updated documents to HO with a covering letter as soon as possible.

Agee with Zimba, better late than never.
What were you doing between 2014 and 2016 ?

[seemadanny]

Thank you Zimba and marcnath. I have another business that I am running since 2013 and thats my initial business and its still continuing. The investment in confusion is for my second business. Thanks alot for your time. I am going to submit a varied application.

[marcnath]

Thank you Zimba and marcnath. I have another business that I am running since 2013 and thats my initial business and its still continuing. The investment in confusion is for my second business. Thanks alot for your time. I am going to submit a varied application.

Ok. Did you consider showing the investment in that business?

[seemadanny]

Yes, part of the investment is shown from that business.

[zimba]

Thank you Zimba and marcnath. I have another business that I am running since 2013 and thats my initial business and its still continuing. The investment in confusion is for my second business. Thanks alot for your time. I am going to submit a varied application.

Btw sending extra documents is not 'variation of leave'. Variation means changing the conditions of your leave, for example apply to vary it to Tier 2 or something

[seemadanny]

Many thanks Zimba for your information. So could I go for another fresh application as Tier 1 while my fresh application is in progress. When I send the new application the existing application automatically get withdrawn and the fresh application is taken into consideration. Am I correct in that? Thanks in advance.

[zimba]

Many thanks Zimba for your information. So could I go for another fresh application as Tier 1 while my fresh application is in progress. When I send the new application the existing application automatically get withdrawn and the fresh application is taken into consideration. Am I correct in that? Thanks in advance.

No you cannot apply for a new application while another is pending. You need to withdraw the first and apply again.
However the problem here is that if you withdraw the current one, given that you have been an overstayer for more than 14 days, any fresh application will be automatically refused. So you cannot do that. Your only option is sending extra docs for your current application

[seemadanny]

Thank you so much Zimba. I didn't know that and this will really help me. So does the same apply if I vary my application?

[zimba]

Thank you so much Zimba. I didn't know that and this will really help me. So does the same apply if I vary my application?

As I explained above, you cannot vary a Tier 1E application to another Tier 1E.
You can only vary Tier 1E to another category like Tier 2, etc. When you vary, the date of your new application will be the same as the date of the previous application

[seemadanny]

Many thanks! and will keep you updated if the progress later.

[seemadanny]

Your advices are great! You all saved me from a fall. I have another query now.

1. Can I cancel a varied application of the same category (identified as invalid / lead to overstay after your advice). Is there any option to cancel as I haven’t done the biometric yet. Can I request HO to cancel the biometric and treat the same type varied application as invalid?

2. Also could you please advise me whether I can get a cos for Tier 2 after AR regusal and apply as T2 (now a varied application).

I need your valuable advice Zimba, macrnath or any seniors please. Thanks!

[zimba]

1. Can I cancel a varied application of the same category (identified as invalid / lead to overstay after your advice). Is there any option to cancel as I haven’t done the biometric yet. Can I request HO to cancel the biometric and treat the same type varied application as invalid?

They will possibly write to you which application you want to go ahead with. Assuming your fresh application is not yet decided.

2. Also could you please advise me whether I can get a cos for Tier 2 after AR regusal and apply as T2 (now a varied application).

No. You need to vary your current application as you are an overstayer and cannot put in any more fresh applications

[seemadanny]

Many thanks!