Tier Entrepreneur Extention Refused

[Khan Friends]

Hello Dear Friends,
I have applied for Tier 1 entrepreneur visa extension under the 50K route. I provided all the required documents but HO has refused my application and have mentioned that we are unable to award points for investment of funds.
They have awarded points for Job creation, Maintenance of funds, English language and being a Director of the company or self employed. I have three employees working for my company so Job creation was covered easily. I am actively running two businesses.
Main reason/point for not awarding the points for investment of funds is that

"I have provided Director's Loan, Accountant Letter, Bank statement, Annual accounts and tax documents but the amount mentioned on the Director Loan does not match the latest unaudited accounts provided".

My last annual unaudited accounts were due and filed a few months before than the date of application and obviously I have made some investment after my accountant filed my last accounts but the investment made after the date of annual accounts is clearly mentioned on the Director's Loan and Business bank statements provided and supported by the accountant letter. As for as I know its clearly mentioned in the Policy guidance that you should provide relevant set of financial accounts which I have provided. I could have made the management accounts for the remaining few months but my accountant and solicitor said as long as we are providing the Business bank statements showing the transfer of funds from my personal account to business account I am able to claim the points because the remaining few months accounts of the company are not due from the Companies House and HMRC.
I have applied for the Admin Review and I am hoping that they will accept my application but I am here to ask you guys for help that what should I do just in case they do not accept my admin review.
Please pray for me and all the other members/friends as I think currently they are refusing applications on minor errors/reasons.
Your comments will be very helpful and appreciable.

[moongesture]

Dear Khan,

The point you have to observe in your refusal is under what section (relevant immigration rule) they have refused your application. Appendix A, Para 46-"specified documents" If the applicant has made the investment in the form of a director’s loan, it must be shown both in the relevant set of financial accounts provided, and through readily identifiable transactions in the applicant’s business bank statements..."

Can you clarify,
a) the unaudited account D/L section was covering full investment i.e 50K or not
b) under which rule they denied your investment 46SD or something else

[Mrchaany]

Dear Friend,

Can you evaluate further your case, means the amount you mentioned on the Director Loan does not match the latest unaudited accounts provided, how it is possible if you accountant provided every letters, can your please tell us what particular things you missed or not provided.

as you know Table 5 of appendix A, Para 46-"specified documents" If the applicant has made the investment in the form of a director’s loan, it must be shown both in the relevant set of financial accounts provided, and through readily identifiable transactions in the applicant’s business bank statements..."

have your accountant aware of the above para 46 or not

[Khan Friends]

Dear Abdhriz,

Thank you for asking.
HO says "From the evidence provided we are not satisfied that the points can be awarded because you have not supplied evidence as specified under Appendix A of the immigration Rules to establish that the business in which you have invested is a UK Business because the Director Loan of (XYZ amount) was not shown in the accounts provided. (The figures on Director Loan does not match with the accounts provided).
Therefore you do not meet paragraph 26-SD(A)(ii) and 46-SD(b) of the immigration Rules".

As I described above in my post accounts filed were till a few months before than I submitted the application. My accountant said that even if we do not make the management accounts for the remaining few months we can still claim the points because if accounts are not due from Companies House and HMRC companies are not liable to make them. My accountant and solicitor already have had few 200K successful applications through Director Loan, Business Bank statements and accountant letter supported with the relevant set of accounts which have been filed to Companies House and HMRC.

[Khan Friends]

Dear Businesstobusiness,

My post above will hopefully make it more clear to you, please ask if you need further information. Thank you for your interest.

[Khan Friends]

Dear Abdhriz,

The accounts provided were not showing full investment of 50K in form of a Director Loan because it was a few months before than the date of application.

[Mrchaany]

zimba88 can you please response to this threat

[solomondid]

Hi Khan friends,

Sorry to hear about your experience, however, no need to worry as I just discussed this with my accountant, in your admin review you just need to prepare remaining months management accounts and send previous year + management account where total should be more than 50k and write a cover letter of explanation. Hope it works for you

[moongesture]

Dear Abdhriz,

Thank you for asking.
HO says "From the evidence provided we are not satisfied that the points can be awarded because you have not supplied evidence as specified under Appendix A of the immigration Rules to establish that the business in which you have invested is a UK Business because the Director Loan of (XYZ amount) was not shown in the accounts provided. (The figures on Director Loan does not match with the accounts provided).
Therefore you do not meet paragraph 26-SD(A)(ii) and 46-SD(b) of the immigration Rules".

As I described above in my post accounts filed were till a few months before than I submitted the application. My accountant said that even if we do not make the management accounts for the remaining few months we can still claim the points because if accounts are not due from Companies House and HMRC companies are not liable to make them. My accountant and solicitor already have had few 200K successful applications through Director Loan, Business Bank statements and accountant letter supported with the relevant set of accounts which have been filed to Companies House and HMRC.

Dear Khan

I believe your accountant and lawyer made some judgmental error while analysing and advising you regarding points you had to claim for investment.
The Un-audited account you submitted did not contain the full investment amount as required via director loan (or share capital).
While you had sent all documents except management account you were unable to satisfy 46-SD. Please remember that your investment will only be validated via bank statement & relevant accounting entries. My suggestion is that rather waiting for AR outcome launch a new application with complete account.

[zimba]

Unfortunately I am inclined to say that HO has made a correct decisions on your application based on the current immigration rules. Full Investment amount needs to be identifiable in your set of company accounts and in your case one piece of evidence (bank statement) contradicts with the other (submitted accounts). Given that your accounting period in which you invested was not over when you applied, you should have submitted management accounts as well to show full investment of 50k in your business. I am also surprised that how come you didn't get the full investment in your annual accounts within 3 years of running a business (late investment?!)
Your chances of getting this decision overturned in AR in my view is slim. The best course of action is to submit a new application with the required management accounts.

PS. Your solicitor made a mistake not to inform you of an obvious requirement and gave you incorrect advice which clearly contradicts the current immigration rules. Your accountant also better NOT give you any immigration advice as that is not his area of expertise.

[suvalike]

Hello Khan Friends

Did you mention individual transaction amounts in the director loan ?

Or

You just mentioned that you are going to advance to the company at least 50K loan

Please clarify ?

In the un-aidted accounts,your accountant did not put any comments about DL that you made ££ amount for that specific year as loan

[suvalike]

Dear Khan,

The point you have to observe in your refusal is under what section (relevant immigration rule) they have refused your application. Appendix A, Para 46-"specified documents" If the applicant has made the investment in the form of a director’s loan, it must be shown both in the relevant set of financial accounts provided, and through readily identifiable transactions in the applicant’s business bank statements..."

Can you clarify,
a) the unaudited account D/L section was covering full investment i.e 50K or not
b) under which rule they denied your investment 46SD or something else

Hi guys

Does our accounts must have the DL column in the accounts...I did not find any column in my accounts. But My accountant put a note under below in the Creditor Point as below:

The total investment i did for each year financial accounts. He just write a note...


Will this be enough....or i must ask him to put the column with individual transactions

[Khan Friends]

Hi Solomondid,

Thank you for your help and advice, I have already applied for seeking admin Review and have explained the best I could (my solicitor has submitted the admin review application on my behalf), I couldn't provide any extra documents as in admin review you can't add any extra documents. I am hoping HO will accept it but as you know the majority of response of admin review is refusal so I am working on documents for fresh application as well.
Thank you.

[Khan Friends]

Dear Abdhriz,

Thank you for your advice, I am preparing all the documents again for fresh application just in case Admin Review is refused. I will wait for the decision of Admin Review as you never know because I have actually made the investment but have not provided the management accounts to fulfil the requirements.

I only have two things in mind.
My total investment mentioned in the third year accounts which is a few thousand £s less than £50 is mentioned on third year accounts for all the previous three years. I will get the management accounts ready by accountant for remaining months but do I have to send first and second year accounts as well even if total investment till the third year is mentioned on third year accounts ?

My business bank statements are with HO, do I have to arrange the duplicate copies or can I mention in cover letter already provided?

[moongesture]

Dear Abdhriz,

Thank you for your advice, I am preparing all the documents again for fresh application just in case Admin Review is refused. I will wait for the decision of Admin Review as you never know because I have actually made the investment but have not provided the management accounts to fulfil the requirements.

I only have two things in mind.
My total investment mentioned in the third year accounts which is a few thousand £s less than £50 is mentioned on third year accounts for all the previous three years. I will get the management accounts ready by accountant for remaining months but do I have to send first and second year accounts as well even if total investment till the third year is mentioned on third year accounts ?

My business bank statements are with HO, do I have to arrange the duplicate copies or can I mention in cover letter already provided?

Dear Khan

Final Accounts which demonstrate final or full investment amount will be sufficient but sending other Un-Audited accounts will provide supplement support.
It is advisable to arrange new bank statements to cover transaction period for investments.
Good Luck.

[Khan Friends]

Dear Zimba,

Thank you for your response, I agree with you on the mistake I have made of not submitting the management accounts. I believed my accountant and solicitor and assumed that solicitor knows better than me and if he did not ask for anything why should I bother the accountant for making extra documents.
I am getting the documents ready for fresh application, all the investment made will be mentioned in the accounts and business bank statements.
Do I need to highlight every transaction of investment from personal to business account or should I just send all the bank statements ?
What about the HMRC documents and bank statements HO already have ? Do I have to arrange copies again or should I just mention in the cover letter documents HO already have?

[zimba]

Do I need to highlight every transaction of investment from personal to business account or should I just send all the bank statements ?
What about the HMRC documents and bank statements HO already have ? Do I have to arrange copies again or should I just mention in the cover letter documents HO already have?

You should highlight the transactions that show you made the investment to your business. Obviously your application failed due to the accounts issue. You do not need to send three year worth of statements to them as there is no point !
I am not sure that HO will return your documents, so apart from originals you better get a new set of documents and submit your application again.

[noajthan]

@robertholdon, to avoid confusion & jumbled responses, I have moved your post to its own thread:
uk-tier-1-entrepreneur-visas/tier-entre ... 03743.html

[suvalike]

Hello Khan Friends

Did you mention individual transaction amounts in the director's loan ?

Or

You just mentioned that you are going to advance to the company at least 50K loan

Please clarify ?

In the un-audited accounts,your accountant did not put any comments about DL that you made ££ amount for that specific year as loan

[Khan Friends]

Dear Suvalike,

I have made a Direcot Loan agreement showing a total of more than 50K loan and not showing individual transactions.
The unaudited accounts were showing the Director's Loan for each year but third year of my company's financial year was a few months before than the date of the application and few investment transactions were after the third year accounts were filed. For those few transactions I did not make management accounts but have mentioned those totalling figure combined with the first three years accounts in Loan agreement, obviously bank statements and accountant letter.

[suvalike]

Dear Suvalike,

I have made a Direcot Loan agreement showing a total of more than 50K loan and not showing individual transactions.
The unaudited accounts were showing the Director's Loan for each year but third year of my company's financial year was a few months before than the date of the application and few investment transactions were after the third year accounts were filed. For those few transactions I did not make management accounts but have mentioned those totalling figure combined with the first three years accounts in Loan agreement, obviously bank statements and accountant letter.

Thanks for clarifying ...I think instead of exact total amount if you could have put that you will be investing at least 50K as director loan into Business ,you could have avoided the refusal....Because at least will fulfill the requirement of 50K and obviously if your submitted accounts total comes up at least 50K too..

[Khan Friends]

Dear Zimba88

I am only waiting for the decision of Admin Review. Only need to ask you few things.
My Third year accounts show the total investment I have made in form of Director Loan. The only missing point was management accounts to show the investment made after third year few months till the date of application which I will include this time if AR is rejected.
If the third year accounts is showing total investment made in three years in form of Director Loan should I still send the first and second year accounts which shows investment for first and second year accordingly ?
Accountant's Compilation Report is the accountant Report in the unaudited accounts ?

[zimba]

Dear Zimba88

I am only waiting for the decision of Admin Review. Only need to ask you few things.
My Third year accounts show the total investment I have made in form of Director Loan. The only missing point was management accounts to show the investment made after third year few months till the date of application which I will include this time if AR is rejected.
If the third year accounts is showing total investment made in three years in form of Director Loan should I still send the first and second year accounts which shows investment for first and second year accordingly ?

You need to show all the accounts during the period you invested in the company. Obviously if you had no loan repayments, your final accounts shows an accumulation of this but you need to show DL was done during the when you first invested, from the first period and onwards.

Accountant's Compilation Report is the accountant Report in the unaudited accounts ?

Yes. Accountant's compilation report is the one that comes with your unaudited accounts.

[Khan Friends]

Zimba88,

Thank you for your advice and help, I will do all the investment documents accordingly.
I did not really want to send the second year accounts because my accountant has revised those due to some mistakes and the total of Director Loan amount is mentioned in third year accounts anyway, or should I send these even revised. Will Revised unaudited accounts be a problem and create any doubts ?

[Khan Friends]

Thank you Abdhriz,
Let's hope I do not need to send/submit these documents again for a fresh application as my Admin Review is pending, but if I need to make a fresh application I will definitely include these documents.
Cheers