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tax liability does not constitute investment. Be careful.whiteroses wrote:^^ But what if you use the amount invested towards paying corporation tax? I don't think that will be counted as amount spent either.
@ whiteroses, it is not possible to spent the investment fund to pay corporation tax simply because corporation tax is only paid on company profit and if you declare profit then you can pay corporation tax from the declared profit without affecting your investment funds. But if you declare very low profit or maybe loss, then your investment funds wont be affected at all because the corporation tax on very small profit will not have much effect on your investment funds. For example, if you declare profit of say £1000 for the first accounting period, then the corporation tax on £1000 profit will be either £200 or even less if you take depreciation of equipment into account.whiteroses wrote:^^ But what if you use the amount invested towards paying corporation tax? I don't think that will be counted as amount spent either.
But your business has to show a profit you cannot make a loss as per guidenceattahaas wrote:The only thing you need to prove is whether you "spent" the "investment" completely within the 3 years on allowed expenses per the guidance. It has nothing to do with how much revenue you generate. It's the same business account you are using for all the purposes.
All you need to do is clearly show the investment and the same or more amount of expenditure (allowable expenses) in the balance sheet, THAT'S ALL!
"Did you spend the 50K or 200k on allowable expenses in 3 years and can you show it on your balance sheet?", if your answer is "YES" then don't worry about revenue.
Successful extension applicants can correct me if I am wrong.
The guidance doesn't really say "the business should be profitable" or "show a profit".cappachino wrote:But your business has to show a profit you cannot make a loss as per guidenceattahaas wrote:The only thing you need to prove is whether you "spent" the "investment" completely within the 3 years on allowed expenses per the guidance. It has nothing to do with how much revenue you generate. It's the same business account you are using for all the purposes.
All you need to do is clearly show the investment and the same or more amount of expenditure (allowable expenses) in the balance sheet, THAT'S ALL!
"Did you spend the 50K or 200k on allowable expenses in 3 years and can you show it on your balance sheet?", if your answer is "YES" then don't worry about revenue.
Successful extension applicants can correct me if I am wrong.
the business should be profitable
That doesn't "REQUIRE" you to make your business attain certain profitability. The context provided is to warn the visa holders not to put your money idle in the account and claim points for "investment" but to actually make an effort and use the money so as to move the business towards profitability. It's a caution not a command.Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business. The money should be used in the business to encourage growth or expansion, to improve services or products and to ensure the business is profitable.
The guidance doesn't really say "the business should be profitable" or "show a profit".cappachino wrote:But your business has to show a profit you cannot make a loss as per guidenceattahaas wrote:The only thing you need to prove is whether you "spent" the "investment" completely within the 3 years on allowed expenses per the guidance. It has nothing to do with how much revenue you generate. It's the same business account you are using for all the purposes.
All you need to do is clearly show the investment and the same or more amount of expenditure (allowable expenses) in the balance sheet, THAT'S ALL!
"Did you spend the 50K or 200k on allowable expenses in 3 years and can you show it on your balance sheet?", if your answer is "YES" then don't worry about revenue.
Successful extension applicants can correct me if I am wrong.
the business should be profitable
That doesn't "REQUIRE" you to make your business attain certain profitability. The context provided is to warn the visa holders not to put your money idle in the account and claim points for "investment" but to actually make an effort and use the money so as to move the business towards profitability. It's a caution not a command.Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business. The money should be used in the business to encourage growth or expansion, to improve services or products and to ensure the business is profitable.
The guidance doesn't really say "the business should be profitable" or "show a profit".cappachino wrote:But your business has to show a profit you cannot make a loss as per guidenceattahaas wrote:The only thing you need to prove is whether you "spent" the "investment" completely within the 3 years on allowed expenses per the guidance. It has nothing to do with how much revenue you generate. It's the same business account you are using for all the purposes.
All you need to do is clearly show the investment and the same or more amount of expenditure (allowable expenses) in the balance sheet, THAT'S ALL!
"Did you spend the 50K or 200k on allowable expenses in 3 years and can you show it on your balance sheet?", if your answer is "YES" then don't worry about revenue.
Successful extension applicants can correct me if I am wrong.
the business should be profitable
That doesn't "REQUIRE" you to make your business attain certain profitability. The context provided is to warn the visa holders not to put your money idle in the account and claim points for "investment" but to actually make an effort and use the money so as to move the business towards profitability. It's a caution not a command.Money deposited in a bank account, even if it is in a United Kingdom business bank account, is not counted as investment in business. The money should be used in the business to encourage growth or expansion, to improve services or products and to ensure the business is profitable.
cappachino wrote:But your business has to show a profit you cannot make a loss as per guidenceattahaas wrote:The only thing you need to prove is whether you "spent" the "investment" completely within the 3 years on allowed expenses per the guidance. It has nothing to do with how much revenue you generate. It's the same business account you are using for all the purposes.
All you need to do is clearly show the investment and the same or more amount of expenditure (allowable expenses) in the balance sheet, THAT'S ALL!
"Did you spend the 50K or 200k on allowable expenses in 3 years and can you show it on your balance sheet?", if your answer is "YES" then don't worry about revenue.
Successful extension applicants can correct me if I am wrong.
the business should be profitable