Extension applications-Entire 50,000 should have been spent?

[whiteroses]

For extension applications, does the business have to spend (and not just invest through loans/shares) the entire £50,000?

[Olasunkanmi]

@ whiteroses, the money must be spent and not left in d business as cash or even loan/shares.

Check; Tier 1 (Entrepreneur) Policy Guidance version 08/2014 Page 46 of 59

''Money should be fully used in the business and not held in the business bank account in order to qualify for the award of points''

''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.''

[whiteroses]

But what if your business didn't need the entire 50,000, and a small amount is left in the business account. Do you have to spend it for the sake of extension?!

[nasirkhan]

But what if your business didn't need the entire 50,000, and a small amount is left in the business account. Do you have to spend it for the sake of extension?!

In that case just attach a cheque of that amount with your extension application with the words, "Keep the change".

[Olasunkanmi]

But what if your business didn't need the entire 50,000, and a small amount is left in the business account. Do you have to spend it for the sake of extension?!

@ whiteroses, the rule of the visa is that the whole £50,000 should be spent in your business, no excuse at all if you cant spend it all.

[whiteroses]

Thanks to everyone who posted.

[zshaan21]

Hi Guys,

It makes no sense to spend the whole 50 k if the business does not require Investment.My business is related to consultancy and I have spent around 10 k to finance my business and there is no need to further invest the money.Get an opinion from qualified consultant who dealt with the entrepreneur extension cases.

[n8net]

does salary to employees count as investment ?

[samaygrg]

does salary to employees count as investment ?

Yes, it does, if you are paying the relevant salary to the eligible people of this country [settled people of UK] according to the guidance.

Thanks

[n8net]

ok cheers, I asked this bcoz some ppl claimeed that salary is deemed as an expense and not an investement.

could you point me to the exact page on the guidance pls ?