Fresh application refusal

[Rajesh singla]

As per my business plan, i will invest £200000 for purchasing existing business, for which i will pay £50000 as goodwill out of these £200000. But in next year i wail invest £75000 & again next year £50000 in the same business extension (as per my business plan). So, i will invest total £325000 for tier 1 entrepreneur in UK in three year. If there can be any problem for paying goodwill? Even after paying goodwill i will invest £275000.

[marcnath]

What are you paying to the existing owner ? Just the goodwill or the entire 200k ?

[Rajesh singla]

£50000 for goodwill & about £80000 for stock.

[Rajesh singla]

What are you paying to the existing owner ? Just the goodwill or the entire 200k ?

£50000 as goodwill & £80000 for stock. Balance of 200000 for furniture computer and trucks.

[marcnath]

What are you paying to the existing owner ? Just the goodwill or the entire 200k ?

£50000 as goodwill & £80000 for stock. Balance of 200000 for furniture computer and trucks.

The strict reading of the rules is that any money that goes to the previous owner is excluded from the investment money. The rules specify that investment is excluded if it is spent on ...

buying any business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business being purchased (This applies regardless of whether the money is channelled through the business en route to the previous owner, for example by means of the applicant or business purchasing ‘goodwill’ or other assets which were previously part of the business.),

So, most likely, the entire 200K would be excluded.

[Rajesh singla]

What are you paying to the existing owner ? Just the goodwill or the entire 200k ?

£50000 as goodwill & £80000 for stock. Balance of 200000 for furniture computer and trucks.

The strict reading of the rules is that any money that goes to the previous owner is excluded from the investment money. The rules specify that investment is excluded if it is spent on ...

buying any business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business being purchased (This applies regardless of whether the money is channelled through the business en route to the previous owner, for example by means of the applicant or business purchasing ‘goodwill’ or other assets which were previously part of the business.),

So, most likely, the entire 200K would be excluded.

I know this, i write in starting of this post that as per my business plan, i will invest £325000 in three year, but to purchase this business we have to pay goodwill to existing owner. Today I am showing £200000 as bank balance for investment and in breakdown of this 200000 funds i have to show goodwill of £50000.
If this is wrong then how it can be solved?

[Rajesh singla]

As per my business plan, i will invest £200000 for purchasing existing business, for which i will pay £50000 as goodwill out of these £200000. But in next year i wail invest £75000 & again next year £50000 in the same business extension (as per my business plan). So, i will invest total £325000 for tier 1 entrepreneur in UK in three year. If there can be any problem for paying goodwill? Even after paying goodwill i will invest £275000.

I am adding in my query that i will pay £50000 as goodwill & £80000 to same owner for stock in same business. I will invest £70000 for equipment, furniture, computer equipments & company vehicles for transporting material.

[zimba]

As repeated above, any money going to the previous owner will be subtracted from your investments.

[Rajesh singla]

My fresh application for tier 1 entrepreneur is refused because i showed in business plan that i will take over a previously established business. In breakdown of £200000 I stated in my interview that:-£50000 as goodwill to existing owner.
£42000 for equipment and furniture for new store
£12000 for computer equipment
£10000 for company vehical for goods transportation
Remainder on stock, rent, insurance, staff salaries,advertisement & contingencies.
And in my business plan, I showed that i will invest extra £75000 in first year & £50000 in second year. By this way i will invest total of £325000 in two year for establishing my business which was not discussed in the interview.
But the caseworker refused my case on the basis that I can't pay for goodwill from £200000. But in reality as per my business plan total investment will be £325000 & after deducting £50000 of goodwill balance is more than £200000.
Please recommend, whether I should go for AR or leave the case.
Thanks in advance to all of you.

[CR001]

Topics merged.

announcements/multiple-posts-will-be-lo ... t5722.html

[CR001]

As repeated above, any money going to the previous owner will be subtracted from your investments.

[Rajesh singla]

If i can fight for entry clearance in AR

[marcnath]

If i can fight for entry clearance in AR

It depends. How much money did you show access to ? Since the 200K paid to previous owner will not be recognised as investment, you need to show funds of 400K.