Tier 1 extension questions

[fatguyslim]

Hey Zimba, how quickly did you receive your extension visa mate?

[zimba]

Hey Zimba, how quickly did you receive your extension visa mate?

http://www.immigrationboards.com/uk-tie ... l#p1325664

[cappachino]

1. Immigration Rules demand that you show min £200K transferred from your personal account to your business account if you invested this money as a Director's loan. This is because you can claim anything in an unaudited accounts. They need to see he money transaction(s) to your business bank accounts to ensure you invested and you are not just claiming it. If the evidence does not match with the transactions, it is certain to say that you will be refused extension.

There are 2 instances where I am getting an issue.

1.First is where I show that the money comes from my savings account going to my personal account that was used for sole trading business. I have the bank statements but no unaudited accounts for that period.

2. I can show £125k going directly from my account to my limited bank account directly from my personal account. The remaining 75k I can't show coming from my personal account as that was used as the working capital for my business.So to give a simpler image the money used in my sole trader account (under my name) sent money out of the account to buy stock and then received the payments into my limited account. I mean all business go through transitional period so not sure how this can be an issue.

Any advice which evidence should I show and what can I do to make my case stronger?

How about a management account with an accountants letter for the sole proprietor account. There is no requirement for bank account statement to prove the transfer of money.
But accountants letter stating the money has been invested is a must

[fatguyslim]

I am just gonna invest another 75k just to get this visa mate

[cappachino]

I am just gonna invest another 75k just to get this visa mate

But your accounts will still not tally with your bank statement investment transaction.
Your accounts will have that extra investment of 75000 pounds which you will not be able to support with your bank statement.
Won't this be a problem as your accounts need to be accurate and this shows your accounts have discrepency which ukba can consider as deception

[nadeem75]

1. Immigration Rules demand that you show min £200K transferred from your personal account to your business account if you invested this money as a Director's loan. This is because you can claim anything in an unaudited accounts. They need to see he money transaction(s) to your business bank accounts to ensure you invested and you are not just claiming it. If the evidence does not match with the transactions, it is certain to say that you will be refused extension.

2. There are no rules preventing you from claiming points for an employee who is also a shareholder.

3. Given that transitional arrangements apply to you, you can hire 4 people for 6 months during your extension period and qualify for ILR.

Hi Zimba,
Could u help me for following,
Investment question.
First year Me and team partner transferred £99000 from abroad to uk business account. Transferred from joint account so in uk business a/c transaction showing first my name then partner name. After few months team partner resign the company and transfer his share 1000/- to my name. So question how I proof first 99000/- is my only investment. And this 99000/- I use 97000/- director loan and 2000/- share capital.

Question 2. My director loan agreement is 97000/-
But transfer amount is 99000/-showing in bank statement, so how I explain between director loan 97000/- and bank transction 99000/-

Regarding the employee. You wrote employee is different and job destination is different. So my question should I need to update job designation on hmrc or just explain on job sheet which will submit to HO.

Sorry for long enquiry.
Nadeem.

[nadeem75]

please advise any update, your professional advise really appricated

regards
nadeem

[nadeem75]

please advise any update, your professional advise really appricated

regards
nadeem

[zimba]

First year Me and team partner transferred £99000 from abroad to uk business account. Transferred from joint account so in uk business a/c transaction showing first my name then partner name. After few months team partner resign the company and transfer his share 1000/- to my name. So question how I proof first 99000/- is my only investment. And this 99000/- I use 97000/- director loan and 2000/- share capital.

You need to show that 97K was invested a director's loan and you have 2K allocated as shares. These must be shown in your company accounts under your name (97K loan + 2k Shares under your name)

Question 2. My director loan agreement is 97000/-
But transfer amount is 99000/-showing in bank statement, so how I explain between director loan 97000/- and bank transction 99000/-

That is fine as long as you show 97K was invested as loan and 2K as shares allocated. Read the guide on what evidence you need to provide for each.

Regarding the employee. You wrote employee is different and job destination is different. So my question should I need to update job designation on hmrc or just explain on job sheet which will submit to HO.

I do not understand what you are really asking. A job is usually a position/vacancy in your company but an employee is an individual who joins your company in order to fill that position. So for example, a position/job can be filled for half a year by one employee and the other half by another employee.

[nadeem75]

Thanks Zimba.
First part. Ok. I understand my accountant did same thing.
What happen the money move in and showing me and partner name. Who is no more part of team.
So home office will not think that this money half half.


Regarding the employee.
For example one employee is sales man. Work for 6 month.
2nd employee should be also sales man ?
And this position where have to be mentioned? Like in appointment letter or home office submit sheet or hmrc. Or on pay slip.

Regards.

[fatguyslim]

3. Given that transitional arrangements apply to you, you can hire 4 people for 6 months during your extension period and qualify for ILR.

Hey Zimba, I am a bit confused about this transitional arrangements thing. I have read the guidance but cant really get make out if this will work for me or not?

My initial leave was granted in June 2013 so my extension is due in June 2016. For my ILR do I not qualify for having the ability to hire to 2 more settled workers and employ them for 6 months?

In the guidance it says this

Pre 6 April 2014 transitional arrangement
169. If you successfully applied to enter the route before 6 April 2014, and you are making an
extension application or a 5 year settlement application, you may continue to employ:
 one worker for 24 months
 one worker for 6 months and one for 18 months
 4 workers for 6 months each
and score points for job creation.

If I get my extension now then do not qualify for this?

[zimba]

What happen the money move in and showing me and partner name. Who is no more part of team.
So home office will not think that this money half half.

As long as the money invested shows under your name in your accounts, you should be fine.

Regarding the employee.
For example one employee is sales man. Work for 6 month.
2nd employee should be also sales man ?
And this position where have to be mentioned? Like in appointment letter or home office submit sheet or hmrc. Or on pay slip.

Depends on when you entered the route. If you successfully applied before 6 April 2014, then you can create multiple roles and add them up. If not, then yes each role/position has to last for 12 months.
You simply need to mention these roles separately on the form (see the last pages of the guide)

[zimba]

My initial leave was granted in June 2013 so my extension is due in June 2016. For my ILR do I not qualify for having the ability to hire to 2 more settled workers and employ them for 6 months?

In the guidance it says this

Pre 6 April 2014 transitional arrangement
169. If you successfully applied to enter the route before 6 April 2014, and you are making an
extension application or a 5 year settlement application, you may continue to employ:
 one worker for 24 months
 one worker for 6 months and one for 18 months
 4 workers for 6 months each
and score points for job creation.

If I get my extension now then do not qualify for this?

You qualify for this after your extension and when applying for 5 year ILR . This is clearly mentioned above and I highlighted this in red. You can for example hire 4 settled workers for 6 months each and qualify for ILR.

[fatguyslim]

But your accounts will still not tally with your bank statement investment transaction.
Your accounts will have that extra investment of 75000 pounds which you will not be able to support with your bank statement. 
Won't this be a problem as your accounts need to be accurate and this shows your accounts have discrepency which ukba can consider as deception

I have access to another 75k mate and I will invest that in my business too in order to just make this visa process easy for me. I have transaction of 125k going from my personal to limited business account. I will just make another 75k not sure what the issue will be here instead of 200k working capital I will have 275k. Dont know what you mean by deception?

[nadeem75]

What happen the money move in and showing me and partner name. Who is no more part of team.
So home office will not think that this money half half.

As long as the money invested shows under your name in your accounts, you should be fine.

Thanks zimba,
the investment amount move from overseas personal joint account and move in UK bank business joint account.statement showing first my name and /partner name. later 8 months he resign from the company and i remove him from the hmrc and inform to bank as he is not part of director, and that year balance sheet showing only my name as a director loan full amount.
please advise it is ok or i need to do something more, because i have time till feb 2016 for extension.

thanks for your kind support.
nadeem

[zimba]

the investment amount move from overseas personal joint account and move in UK bank business joint account.statement showing first my name and /partner name. later 8 months he resign from the company and i remove him from the hmrc and inform to bank as he is not part of director, and that year balance sheet showing only my name as a director loan full amount.
please advise it is ok or i need to do something more, because i have time till feb 2016 for extension.

thanks for your kind support.
nadeem

As long as the statement showing your name it must be okay given that it is supported by your company accounts. You are fine.

[nadeem75]

Thanks a lot.

[fatguyslim]

Hey Zimba, did you redact all the other info on your statements when you sent them the bank statement showing your investment?

[fatguyslim]

Hey Zimba, I applied for the Visa as you suggested mate and I successfully got my extension on 27.07.2016. I thought I should message you on here to say thanks.

Now I do have more questions buddy regarding my next application. As my initial application was before april 2014 I come under the category "transitional arrangement" I believe. In the guidance note on page 51 section 169 it says this

Pre 6 April 2014 transitional arrangement
169. If you successfully applied to enter the route before 6 April 2014, and you are making an
extension application or a 5 year settlement application, you may continue to employ:
 one worker for 24 months
 one worker for 6 months and one for 18 months
 4 workers for 6 months each
and score points for job creation.

Now what I need to know is that are these the only examples we can choose from? I mean can I not employ 3 employees for 8 months to qualify for my ILR? I believe the objective of this transitional arrangement is for me to complete 24 months right? Please let me know whether 3 employee situation would be acceptable or am I missing something? Thanks

[zimba]

Congratulations on your visa.
The only benefit you get by having transitional arrangements is that you can create a job/position that lasts less than 12 months. Bear in mind that a position can be fulfilled by multiple employees and need not be continuous. Example:

- Marketing manager position (3 months)
- Software engineer position ( 9 months)
- Sales manager position (8 months)
- HR manager position (4 months)

You have created 24 months of employment in 4 positions however NONE of the positions were for 12 months. Under transitional arrangements this is acceptable.

[helpingperson]

fatguyslim

What was your time line?

[fatguyslim]

Congratulations on your visa.
The only benefit you get by having transitional arrangements is that you can create a job/position that lasts less than 12 months. Bear in mind that a position can be fulfilled by multiple employees and need not be continuous. Example:

- Marketing manager position (3 months)
- Software engineer position ( 9 months)
- Sales manager position (8 months)
- HR manager position (4 months)

You have created 24 months of employment in 4 positions however NONE of the positions were for 12 months. Under transitional arrangements this is acceptable.

Thanks Zimba

What I want is to qualify for my next visa as fast as possible. I cannot employ 4 people as I don't need 4 staff members. The best I can do is have 3 employees and qualify for the ILR in 8 months. The kind of business I do I am more than capable of doing on my own so the only reason I am taking on people is to qualify for ILR. Plus I want my main business to have it's headquarters in a different country hence getting this out of the way needs to happen as soon as possible lol. Is having 3 people for 8 months acceptable?

[fatguyslim]

fatguyslim

What was your time line?

Applied on 06.06.2016 received on 27.07.2016

[zimba]

Is having 3 people for 8 months acceptable?

Yes

[fatguyslim]

Is having 3 people for 8 months acceptable?

Yes

Excellent. Thanks!