Tier 1 (enterprenuer) EXTENSION

[FKS21177]

HI All

WE are 2 team members and got Tier 1 (ent) 50K,....

we are running business XYZ consultancy & Marketing company, as the nature of business is such that
we cannot spend 50k on business, our investment so far..
8K business set-up
5K office decoration
4K marketing material and website

TOTAL INVESTMENT= 17K

we also have employees to whom we paid about 30K

My Question is ..... Does employees salary count towards investment ? if not then how do show 50K investment as our business nature is such we cant buy goods to invest.

we transffered all 50K from personal to business account..

We accomplished all other requirements, just not sure about this 50K investment

please seniors reply,

Thanks in advance

[FKS21177]

Moderators and seniors please reply...

[Ash009]

How many people have you employed and in what capacity/positions?

[FKS21177]

How many people have you employed and in what capacity/positions?

Thanks Ash009 for ur reply....

We hade one full time employ for 12 months,she resigned.
We paid her about £18k for that period.

Currently we got one part-time employee doind 24hrs per week.

Thanks

[Ash009]

All funds spent on the business like, wages (except director's remunerations), stationery, adverts, office rent e.t.c are counted as business expenses and are classed as investment funds. You will have to spend the whole 50k on the business in order to meet the investment criteria for extension of the visa.

Hope this helps.

[ishfaqsangra]

I think you should be fine as you have spent almost £47000 on set up,marketing,office and staff(as company do need staff for growth and progress which could include different roles) so from my personal perspective if you spend £3000 more you should be fine
Just make sure you need to exclude your own remuneration if you have taken anything from Company's account then you need to put that much again as Directors Loan to balance it.

This is my personal suggestion

[FKS21177]

All funds spent on the business like, wages (except director's remunerations), stationery, adverts, office rent e.t.c are counted as business expenses and are classed as investment funds. You will have to spend the whole 50k on the business in order to meet the investment criteria for extension of the visa.

Hope this helps.

Thanks for your reply ASH009....

i just been to the accountant yesterday and he told me that employee salary does not count towards investment so its abit confusing, hope home office clear this confusion and experts on this forum also update us

thanks again for your time and help

[FKS21177]

I think you should be fine as you have spent almost £47000 on set up,marketing,office and staff(as company do need staff for growth and progress which could include different roles) so from my personal perspective if you spend £3000 more you should be fine
Just make sure you need to exclude your own remuneration if you have taken anything from Company's account then you need to put that much again as Directors Loan to balance it.

This is my personal suggestion

Thanks a lot for ur reply ISHFAGSANGRA.....

hope this is correct what u said then we shud be fine, there is big ambiguity regatding investment.

[Momi]

Why don't you read the policy guidance. It will save a lot of time. EmployeeS salaries count as investment otherwise you can't invest that much money.
Hats off for you accountant though. You found a brilliant star from whole UK.

[Ahmed25]

Why don't you read the policy guidance. It will save a lot of time. EmployeeS salaries count as investment otherwise you can't invest that much money.
Hats off for you accountant though. You found a brilliant star from whole UK.

No Momi, FKS21177 is right. This visa rules are very complicated and that's why all the accountant and solicitors have their own theory. I met with one solicitor and one accountant few weeks ago. Solicitor said have you invested money in first six months of your visa I said no he said game over and regarding the accountant he was not accepting Director's loan as an investment. I know according to guidance both are wrong but I think most of the people are like them in the market.

[ishfaqsangra]

1-From Accountants' point of view A Directors Loan is straightaway Investment,how can he/she say it is not investment?
but we need to spend it all anyway from Home office point of view/requirement.

2-Secondly, if business needs an employee for marketing purpose and we hire someone for marketing (to do marketing using any marketing tool ,door to door,office to office,in person,over the phone etc) for the establishment and growth of the business in that locality why it is not counted as investment?

3-Business not only needs offices and hardware but HR as well Hope it clears a little although ambiguity is always there with the Home Office Guidance

[FKS21177]

Why don't you read the policy guidance. It will save a lot of time. EmployeeS salaries count as investment otherwise you can't invest that much money.
Hats off for you accountant though. You found a brilliant star from whole UK.

@Momi Thanks for your reply....

U r right policy guideline is the best place to look at but unfortunately its not too clear for a person who has no in-depth knowledge of accounting..

just imagine even the accountants are not clear about this and are not on one page regarding this.

i hope you are right and it count towards investment, it will help alot of people incl Me

[FKS21177]

Why don't you read the policy guidance. It will save a lot of time. EmployeeS salaries count as investment otherwise you can't invest that much money.
Hats off for you accountant though. You found a brilliant star from whole UK.

No Momi, FKS21177 is right. This visa rules are very complicated and that's why all the accountant and solicitors have their own theory. I met with one solicitor and one accountant few weeks ago. Solicitor said have you invested money in first six months of your visa I said no he said game over and regarding the accountant he was not accepting Director's loan as an investment. I know according to guidance both are wrong but I think most of the people are like them in the market.

@Ahmed25... Thanks for your reply..

I Agree with you, its so much confusion even among solicitors

[FKS21177]

1-From Accountants' point of view A Directors Loan is straightaway Investment,how can he/she say it is not investment?
but we need to spend it all anyway from Home office point of view/requirement.

2-Secondly, if business needs an employee for marketing purpose and we hire someone for marketing (to do marketing using any marketing tool ,door to door,office to office,in person,over the phone etc) for the establishment and growth of the business in that locality why it is not counted as investment?

3-Business not only needs offices and hardware but HR as well Hope it clears a little although ambiguity is always there with the Home Office Guidance

@ishfagsangra thanks for ur reply...

i think it shud be this way otherwise how can a consultancy company invest 50K when its not needed to, unless they just want us to get rid of 50K regardless its needed or not by business..

i hope more expert opinion will cone on this from Gurus here...

can you possibly list things where we can spend and will be counted investment?

thanks in advance

[whiteroses]

An accountant I approached said the same thing about wages not counting as investment.
Do we still need to provide an accountant's letter regarding how much money was invested? My accountant is willing to comment on investment in the form of loan/share capital, but not on the expenditure as he thinks this cannot be considered investment.

[zshaan21]

http://www.immigrationboards.com/uk-tie ... l#p1251703

[zshaan21]

Hi Guys,

Thanks guys for your valuable comments, it's very help full.However, the accountants, solicitor, and home office are also confused regarding the Investment.As per the accounting point of view Salaries/Wages is not counted as an Investment, It can be only considered as an investment if the business is in loss.

[FKS21177]

Thanks All for your replies, this will definately help alot of us, as most of tier 1 (ent) are about to be extended and the most confusing part is investment in this regards.

Please keep posted here if you have any further info about this.

[amit8910]

Hi Guys,

other problem mejor problem is if you transfer money to business a/c 50k and if you doing sales of near about 30k every year then your 50k director loan will be sit in business a/c only.Few guys saying you dont have to worry about 50K after transfer to business a/c as long as transfer then it's fine.It doesn't metter.

any thoughts on this problem

[amit8910]

please describe if somebody already applied for extension so other applicants can plan accroding that for investment