Tier 1 Extension Application - Urgent Advise Needed

[shaz2017]

Hi,
I'm applying for T1 Ent extension. My spouse is also my employee she works as part time. Has her salary got any impact on my 50K investment?
Thanks

Better not pay her salary from your investment or this could be viewed as recycling cash

I may be on a similar situation and I would appreciate if Zimba and other senior guru can contribute on this. I am on Tier 1 Visa and my first extension is due in April 17. Venture Capital has invested £50k into my business and the first part of investment has been made in October 2014 and they completed the full investment of £50k in February 2016. I was in loss in the first year (2014-2015), In the second year, the turnover was £92k recorded and in the third year, I am expecting a minimum turnover of over £100k.

I have created 2 full time jobs for settled workers but my wife also helped me in the business and she was on a minimum salary since November 2014. I understand I pay the salary to my wife and to myself in the first year from the VC investment but in the second/third year business made profit. Please let me know if this was ok and I will not be questioned by HO as I have paid the salaries from the investment not from the revenue.

[zimba]

I cannot make that call as there is no guide or general rule. As I stated above, it is common sense that the money invested cannot be used for your own remuneration or in such a way that is not genuinely invested (goes back to your own pocket)

[shaz2017]

I cannot make that call as there is no guide or general rule. As I stated above, it is common sense that the money invested cannot be used for your own remuneration or in such a way that is not genuinely invested (goes back to your own pocket)

Thank you Zimba for your input, I have checked with my Accountant and he further advised that this is not a Director Loan its a third party investment who has the X% shares in the business and therefore HO should not be any issue either the investment was only used to pay salaries around family but they also see other factors that the business generate revenue over the 3 years. Please advise if you are agreed or further comment will be much appreciated.

Thanks

[ishfaqsangra]

If the business has generated revenues then why cant be your wife's salary from there?(like any other expense), From home office anything can be questioned, the solution is not to avoid questions, the solution is to justify queries/question, if she has made an impact on your business growth through her services, it is not a crime to pay her as per my understandings.

I have not come across a single case on forum where it was rejected because" you paid your spouse from investment(but you never know in future which in that case should also be defend able,if legitimate)

[inaam.cs]

If the business has generated revenues then why cant be your wife's salary from there?(like any other expense), From home office anything can be questioned, the solution is not to avoid questions, the solution is to justify queries/question, if she has made an impact on your business growth through her services, it is not a crime to pay her as per my understandings.

I have not come across a single case on forum where it was rejected because" you paid your spouse from investment(but you never know in future which in that case should also be defend able,if legitimate)

Very good answer, thanks.

[inaam.cs]

Hi,
In order to show an investment i am providing the accountant letter plus my business statement clearly show investment entries with my name and reference as director's loan.
Is it enough or do i need to provide my personal bank statement too?

[ishfaqsangra]

Better if you can,

[shaz2017]

Hi Everyone,

I would like to give a brief about my upcoming extension application which is due in 2 weeks time and I was just wondering if I can get some expert advice specially from senior Members including Zimba88.

My initial application was approved back in 2013 and I received a Tier 1 Entreprener visa for 3yrs 4M. I have been offered an investment from Venture Capital on the basis of letter issued which confirms the availability of funds of £50k for my business.

However, my VC Firm was operating under another XYZ Capital LLP who was regulated by the FSA, this mean my VC was one of their trading name only and they had the permission from FCA to carryout the investments.

What I have heard recently, that my VC who have invested full £50k into my business is no longer regulated by FSA, infact they have cancelled their affiliation with XYZ Capital LLP back in 2015 without notifying us and they were still carry on with the investment. Please note that my VC has fully funded my business and completed their investment in 2016.

This is the situation and I was completely unaware of this until last week and now my extension is set to go now.

I understand that for any VC to invest into the business, HO has a certain guidelines for Venture Capitalists as they must be FSA regulated. I am not sure where do I stand as the affiliation of my VC with XYZ capital firm was cancelled well before they completed the investment. Since the investment has been completed and this reflects in my Business bank account and as well as in my financial accounts. I have created 2 full time jobs over 3 years, the business was in profit and in short, I see that I full fill HO requirement for extension but I am worried about how seriously the HO will consider about not having my VC regulated by FCA at the time they fully injected the investment.

I am happy to provide any additional information just in case if you do not get the message correctly.

I would appreciate any advise and assistance come from senior members.

Thank you

[seasky]

I don't know much about the 50k VC route but I will say this:

1. You don't have a choice but to accept this was your investment and go for extension (unless you have another source to invest 50K next two weeks...)

2. this VC was approved at point of original visa and did invest, not sure that HO can/should not accept it because you don't control them changing their status

[Hadi2008]

Dear All & Respected Gurus,

I am in the process of submitting my Tier 1 Extension which is due in one week time. I have been reading many threads related to my application and it was indeed very helpful.

I would like to verify some of the issues as I see is still outstanding and any expert advice will be much appreciated.

Maintenance

Q1. I have maintenance funds available in my account to support myself and my 3 dependents, however, I see some of the changes in my account as the bank change my statements frequency as follows;

Statement Date: 3rd February (3rd January - Bought Forward - £5,034)
(31st January - £6,134)
Statement Closing Balance - £6,134
No Transactions can be seen between 31st - 3rd

Statement Date: 3rd March (3rd Feb - Bought Forward - £6,134)
(28th Feb - £8,222)
No Transactions can bee seen between 28th - 3rd March
Statement Closing Balance - £8,222

Statement Date: 3rd March (3rd March - Bought Forward - £8,222)
(13th March - £7,872)
Statement Closing Balance - £7,872

Statement Date: 23rd March (13th March - Bought Forward - £7,872)
(23rd March - £7,372)
Statement Closing Balance - £7,372

As see above, my bank has change the statement frequency from monthly to 10 days and what I also see a gap of 3 days as minimum every start of the month, is it normal? However, this is my Cash Minder Account and hardly being used. I need to show maintanace for 90 Consecutive days and I am submitting my application on Friday the 7th April 17. If they issue the next statement after 10 days then the next statement date will be 2nd April and I don't think that it covers 90 days period. Do you think changing 10 days frequency to 15 days will be ok as I can ask my bank to issue the next statement on the 6th April so I will cover for 90 Days?

Q2. Online statements with Bank Stamp, Date and signed will be acceptable or do I also need a letter from the bank confirming the statements are genuine?

Job Creation Evidence

I have created 2 full time posts as follows;

Q1. My employees worked Full Time and the basic pay was as follows; Please note that we paid them annual salary and therefore no hourly rates are mentioned in the payslip. Please advise and kindly confirm the rates are ok?

Employee 1

Nov 14 - Aug 15-------£16,000/Annum-------37.50 hrs/Week----------£8.20/hr (10 Moths Full Time)
Sep 15 - May 16 (Left)-£12,000/Annum-------32 hrs/Week--------------£7.21/hr (9 Months Full Time)

Employee 2

Sep 15 - Present------£18,000/Annum--------37.50 hrs/week-----------£9.23 (19 Months)

Q2. My accountant is currently using Payroll software which does not produce FPS as per the HO requirement as the start date is not mentioned in their FPS's. I have used Money soft to create FPS and also the payslips, is this ok by doing this as long as it matches with the actual HMRC submissions and all the figures matches with P32's?

Q3. Since I have used Money software to generate Payslips and FPS's but in reality these were not submitted to HMRC as these were self generated. Do I require to send RTI Full Payment Submissions too or FPS's and wage slips will be sufficient? Because some people here submitted the these reports.

Thank you for your reading and look forward to your expert advise

[CR001]

Are you posting under two user ID's?
member/shaz2017/

This is NOT permitted on the forum. See Multiple Member IDs (click)

[zimba]

Q1. Do you think changing 10 days frequency to 15 days will be ok as I can ask my bank to issue the next statement on the 6th April so I will cover for 90 Days?

Yes, you should cover full 90 consecutive days

Q2. Online statements with Bank Stamp, Date and signed will be acceptable or do I also need a letter from the bank confirming the statements are genuine?

Yes only if stamped by the bank as correct

Q1. My employees worked Full Time and the basic pay was as follows; Please note that we paid them annual salary and therefore no hourly rates are mentioned in the payslip. Please advise and kindly confirm the rates are ok?

See: uk-tier-1-entrepreneur-visas/confused-a ... l#p1464511

Q2. My accountant is currently using Payroll software which does not produce FPS as per the HO requirement as the start date is not mentioned in their FPS's. I have used Money soft to create FPS and also the payslips, is this ok by doing this as long as it matches with the actual HMRC submissions and all the figures matches with P32's?

Yes. FPS reports are software reports showing the figures submitted to HMRC. They are not actual submissions.

Q3. Since I have used Money software to generate Payslips and FPS's but in reality these were not submitted to HMRC as these were self generated. Do I require to send RTI Full Payment Submissions too or FPS's and wage slips will be sufficient? Because some people here submitted the these reports.

Up to you.

[Hadi2008]

Are you posting under two user ID's?
member/shaz2017/

This is NOT permitted on the forum. See Multiple Member IDs (click)

Hi CR001,

I do have some issues to access my email account for Shaz2017 and therefore I allow Admin to erase my ID as this will be the one used for future communication

Sorry for the inconvenience.

[CR001]

Are you posting under two user ID's?
member/shaz2017/

This is NOT permitted on the forum. See Multiple Member IDs (click)

Hi CR001,

I do have some issues to access my email account for Shaz2017 and therefore I allow Admin to erase my ID as this will be the one used for future communication

Sorry for the inconvenience.

User accounts and posts are NOT deleted/erased. I have merged all your topics and deactivated shaz2017.

[Hadi2008]

Are you posting under two user ID's?
member/shaz2017/

This is NOT permitted on the forum. See Multiple Member IDs (click)

Hi CR001,

I do have some issues to access my email account for Shaz2017 and therefore I allow Admin to erase my ID as this will be the one used for future communication

Sorry for the inconvenience.

User accounts and posts are NOT deleted/erased. I have merged all your topics and deactivated shaz2017.

Thanks

[Hadi2008]

Thank you Zimba for your prompt reply as expected

If RTI submissions are not required by the HO then it wont be submit. The following list of documents will be sent which is as follows;

Job Creation

1. FPS's for 2 full time employee covering full period of their employment (19 Months worked by Employee 1 + 19 Months worked by Employee 2). Both employees worked for 38 months. Can I choose the months and send only 12 months for each employee or to be sent all 38 months of payslips and FPS for the safe side? I will mention the actual start date and Leaving date in the form? is this ok. Please advise
2. Payslips covering full period of their employment
3. Copies of Passports for two Settled Workers with my signatures on it (only Picture page where it says British Citizen)
3. P45 for employee who left in May 2016
4. P46 for 2 employees
5. P32's for 14/15, 15/16, 16/17
6. P11's & P60's for 2 employees
7. Job Creation Letter from Certified Accountant
8. Employees Pay Details for 2 Employees
9. Employment Contracts for 2 Settled workers which also shows the joining dates. Additional letter which was produced to inform our employee the change of salaries. Is this ok to send these contracts with the application?

Please advise if these are all good to go.

Thanks

Q3. Since I have used Money software to generate Payslips and FPS's but in reality these were not submitted to HMRC as these were self generated. Do I require to send RTI Full Payment Submissions too or FPS's and wage slips will be sufficient? Because some people here submitted the these reports.

Up to you.[/quote]

I am assuming that RTI Submissions are not important as such, only FPS and Payslis would be sufficient to prove the two employments and the total PAYES?

[Hadi2008]

Hi Zimba,

Please confirm that I should be ok to use basic version of FPS on Moneysoft. Do you recommend Basic or Compact/Extended Versions? Please advise

[Hadi2008]

I don't know much about the 50k VC route but I will say this:

1. You don't have a choice but to accept this was your investment and go for extension (unless you have another source to invest 50K next two weeks...)

2. this VC was approved at point of original visa and did invest, not sure that HO can/should not accept it because you don't control them changing their status

Thank you seasky for your reply on my previous message and my apologies for not get back to you earlier on this as I have had some issues accessing my account.

I have accepted and for sure I am unable to over turn VC status that they are not regulated by FCA. However, if you can briefly comment on, if HO raise this issue that your investment was made from the same VC you have declared the name in your initial application, but we are not satisfied with the investment as this was not FCA regulated at the time they invest £50k into your business? FYI VC was not regulated by FCA in early 2014 and they start investing in late 2014.

Please comment if appropriate and also if Zimba can contribute on this thread will be much appreciated.

[jafersadeq]

Hi Zimba,

Please confirm that I should be ok to use basic version of FPS on Moneysoft. Do you recommend Basic or Compact/Extended Versions? Please advise

HO wants to see: Employee name, gross payment, net payment, tax paid to HMRC, NI paid to HMRC.
All date in basic layout.

[Hadi2008]

Hi Guruz,

I am very confused and I am unable to found a reasonable answer. I just have 5 days left for my extension. Please help me on this.

Confusing Statement 1.

From page 46, clause 132 of policy guidance stated

"If you provided evidence of the funds as part of your last successful application you do not need to provide that evidence again"

From Page 47 of policy guidance stated that

"If you are claiming points for investing £50,000 awarded by a venture capital firm, seed funding competition or UK government department or devolved government departments in Scotland, Wales or Northern Ireland/intermediary public body, and have not been awarded points in a previous application for having those funds available, you must provide a letter as evidence of the source of those funds. This letter must contain all of the information set out above- but it does not need to have been produced within the 3 months immediately before the date of the application"

In my initial application, I submitted a letter issued by venture capital and confirm the investment of £50k which will be invested into my business after HO issue me a visa. However, my Initial application was refused and they only awarded me points for maintenance and English. My visa got approved after AR and HO grant me the visa. My question is, have I been awarded points in a previous application for having those funds available for my business? If yes then I do not need to provide any letter as evidence of the source of those funds. Please advise?

Confusing statement 2.

"However, if you are claiming points for money previously invested by a venture capital firm, you must supply the additional evidence detailed in the Additional evidence for venture capital funding section"

I am not sure what previously means? My venture capital has invested during my initial period of 3 years not previously/before the visa was issued. Please clarify the above statement?

Confusing Statement 3

"If you have invested by way of share capital the business accounts must show the shareholders, the amount and value of the shares (on the date of purchase) in your name as it appears on your application. If the value of your share capital is not shown in the accounts, then a printout of the company’s register of members from Companies House must be provided"

My VC has invested full £50k and in return they have some shares in my business. My accountant suggested that these funds having a shareholding and this means the investment was made as share capital. If VC have invested in the form of share capital then it means I have to provide all the documents mentioned above and in the application form K3 under section 3, I may have to select two options which would be box 3&4?

Confusion in K4 of the application form

"Were any of these investment funds shown as part of your successful application for your last grant of your leave"

What option shall I go for?

Option 1. Yes all the funds were shown in the previous application

Option 2. Yes some of the funds were shown in the previous application

Option 3. No none of the funds were shown in the previous application

I believe I should select option 1 as all the funds shown in the previous application so I can jump to Part L. Please advise?

Confusing Statement 5

In Section 3, K9 of the application form

"If you were awarded your £50k investment from venture capital and did not provide this evidence with our previous application, you must also provide a letter from an accountant confirming that they were the source of your funds"

I have been awarded £50k investment from VC and in my previous application i have provided the evidence in the form of letter from VC who holds these funds for my business and they will inject the complete investment after the visa will be issued. I am not sure that if I need to provide a letter confirming that they have fully invested. I am sending my Full Account for 15/16 and 16/17 which shows all share holders names with share allocated, the total amount invested by VC with their name, their number of shares, date of purchase, value of shares. Also my business bank statement which reflect VC investment. Don't you think this will be sufficient? Please advise

What I would appreciate if you all seniors and specially Zimba to advise me that I need letter from VC and as well as from my accountant or not as an evidence of investment. These statements are very confusing and I cannot move my head around and unable to decide. I do not want to send any extra documents or repeat document which was provided in my initial application. Any suggestions will be much appreciated.

Your prompt reply will be much appreciated

Many thanks

[Hadi2008]

Hello Seniors/Gurus,

I am submitting my application on this coming Friday and here is the list of my documents and these will be enclosed with our application. Please guide me if any thing I am missing or if it is good to go. Your opinion matters to me and you prompts feedback will be much appreciated. Look forward urgently

A. General Documents
1. Passports of Main Applicant
2. Passports of Three Dependants
3. Main Applicant - Application Form Version 11/2016
4. Dependents – Application Form Version 01/2017
5. Bankers Draft of £1,228 for Each Applicant
6. Printout of Immigration Health Surcharge Payment Confirmation – All Applicants

B. Section K – Evidence of £50,000 Invested in UK Business – 20 Points Claimed

1. Current Appointment Report showing the address of Registered Head Office in the UK
2. Recent Filling History
3. Original Business Bank Statements Showing that the Company has a UK Bank Account
4. Original HMRC Letter of Company Tax Reference Number (UTR)
5. Original HMRC Letter CT41G Company Tax Reference
6. Two Sets of Unaudited Accounts 2015/2016 and 2016/2017 with Accountant Compilation Report. Which shows the Total Investment, Details of Number of Shareholders, the amount and Value of the Shares on the Date of Purchase.
7. Confirmation Statement (CS01) of Capital Allotment of Shares (Company’s Register of Members) – 2016/17
8. Company Tax Returns CT600 Forms 2015/2016 and 2016/2017
9. Original Business Bank Accountant Statements Showing Venture Capital Firm Invested more than £50,000 into the Business. Schedule of Funds Transferred are as follows;

Dates of Funding Amount Invested

Total £50,000

10. Accountant Letter Confirming that Venture Capital Firm were the source of the funds as listed above
11. SH01 Return of Allotment of Shares
12. HMRC Correspondence Letters
13. Director Appointment Details Printout from Companies House
14. Overview of Company Details Printout from Companies House

C. Section L – Evidence of Registered as Director within Six Months – 20 Points Claimed

1. Current Appointment Report with recent Filling History confirms Director Appointment within Six Months of the specified date
2. Certificate of Incorporation Printout from Companies House
3. Original HMRC Letter of Company Tax Reference Number (UTR)
4. Original HMRC Letter CT41G Company Tax Reference
5. HMRC Correspondence Letters

D. Section M – Evidence of Engagement in the Business at the Time of Application – 15 Points Claimed

1. Companies Current Appointment Report
2. Companies House Printout of Filling History Page, confirming that the Company is still active and the Director is Registered since incorporation of the Company
3. Latest 2 Months Original NatWest Business Bank Statements Showing Business Transactions and Payments Activities

E. Section N – Created Two Full Time Equivalent Posts – 20 Points Claimed

1. HMRC Employer Registration Letter Confirming PAYE and Accounts Office References
2. 2 Settled Workers Passport Copies
3. P45 - Job Number 1
4. Letter from Certified Accountant confirming 2 Net Job Creation for 2 Settled workers, including Hours Worked per week and the Age of Employment

F. Documentary Evidence to show you are reporting Pay As You Earn (PAYE) income tax

1. Copies of Real Time-Full Payment Submissions (Total Period of Employments) – Job Number 1 & 2 (Total Payments made to the Settled Workers, showing Monthly Gross/Net Pay, Tax/NIC Deducted as well as the date which they have Started/Left)
2. Duplicate Payslips for Settled Workers (Total Period of Employment) - Job Number 1
3. Duplicate Payslips for Settled Workers (Total Period of Employment) - Job Number 2
4. P32 – Employers Payments to HMRC (Enclosed 2014/2015, 2015/2016, 2016/2017)
5. Copies of P11’s Deductions working sheet – Job Number 1 & 2
6. Copies of P60’s Deductions working sheet – Job Number 1 & 2
7. Employees Contracts

G. Section P – English Language – 10 Points Claimed

1. Original MSc Degree

H. Section Q – Maintenance of Funds (Main Applicant & 3 Dependants) – 10 Points Claimed

1. Personal Bank Statements – £945 for the Main Applicant and £1,890 for Three Dependants (Total £2,835) of Personal Savings are the available funds that has been held for a Consecutive 90 Day Period
Documentary Evidences of Three Dependants

Dependant 1:
• Marriage Certificate
• Copy of Utility Bill (Gas & Electricity)

Dependant 2:
• Birth Certificate
• School Letter

Dependant 3:
• Birth Certificate
• School Letter

I Business/Trading Activity Documentary Evidence

1. HMRC Letter Confirming Director Unique Taxpayer Reference (UTR)
2. Certificate of Registration For VAT
3. Quarterly VAT Submissions Confirmation Receipts
4. Certificate of Employers Liability Insurance
5. Company Profile
6. Company Website Snapsots
7. Domain Name Registration and Owner’s Detail
8. Google Map of Registered Office Address
9. Registered Office Address Tenancy Agreement
10. Jobs Advertising Material
11. Emails – Examples of our Business Activities and Work Flow

[jafersadeq]

Look fine,

Why does the cheque £1228 ? it should be £1204

[jafersadeq]

Oh sorry, they updated the fees 2017