lump sum funds tier 1 extension

[aleko76]

hi my extension is due in December 2017 therefore i am under the new rules.. i have transferred 170k from my personal account and have rented a takeaway and i am doing renovation and shop fitting jobs.i have already spent 30k on setting up my takeaway.

1-do the funds have to be 200,000 as a lump sum and then start spending or can i start with the 170k and then spend the remaining 30,000 when i am able to but definitely before extension time?

2- i know as a director my salary does not count. can i not pay myself salary or do i have to pay salary to myself?

3- Do i need to register for VAT?


thank you
alfie

[sameerb]

1. You can start investing with any amount.

2. you can pay yourself but I think it can not be considered as investment

3. VAT is applicable if your sales reach £83000 or over.

[JamesBlack]

You definitely need to transfer minimum of 200K from personal to business account.
No restrictions in how many transaction. You can do in 1 or many transactions. Some banks only allow certain limit per day or per transaction.
Only 1 director's loan agreement is enough for all transactions dated prior to the first transaction you make personal to business. For extension application Investment via directors loan can be made any time with in 3 years upon the need of the business, to claim points.
But money should always be available to you readily and at all times.



Thanks

[aleko76]

thanks for your reply ..

1-i do not wish to pay myself salary . is that okay or is it a must that i pay myself?

the reason for that is that the money will not count.


many thanks

alfie

[JamesBlack]

Taking director salary is not ideal
Although no harm

But salary must not come from directors loan
Instead only come from profit

Better if only dividends are taken again business has ro be making significant profits.

No requirement for director to take director salary

As per my understanding