Confusion related to Accelerated Settlement - Turnover basis

[snt]

I have had a long discussion with my solicitor on the matter.

as per my understanding from Tier 1 Entrepreneur policy guideline (04/2017), paragraphs

216. 4).
218.
219.

One is eligible for Accelerated settlement if you have achieved a combined Turnover of £5 million in initial granted leave of 3 Years & 4 months.

Whereas my solicitor is of an opinion that the term used in paragraph 219 is "Gross Income" which ideally is your income before taxes and not the turnover.

I would like to hear your opinion on this. Specially from people who have recently applied under this scheme and have been successful.

cheers!

[seasky]

Your solicitor is correct in the sense that turnover IS gross income ( total sales). How do you define turnover



I do not recall any successful accelerated based on turnover on this forum. There was a recent unsuccessful one. I'll try to search for the case when on PC

[snt]

Your solicitor is correct in the sense that turnover IS gross income ( total sales). How do you define turnover

I do not recall any successful accelerated based on turnover on this forum. There was a recent unsuccessful one. I'll try to search for the case when on PC

According to him Gross Income is not just the total sales BUT total sales - Cost of Goods Sold. see below link for screenshot.

http://bit.ly/2od2oIP

[seasky]

Your solicitor is correct in the sense that turnover IS gross income ( total sales). How do you define turnover

I do not recall any successful accelerated based on turnover on this forum. There was a recent unsuccessful one. I'll try to search for the case when on PC

According to him Gross Income is not just the total sales BUT total sales - Cost of Goods Sold. see below link for screenshot.

http://bit.ly/2od2oIP

I am pretty sure Turnover=sales. I have asked my CFO for HMRC/ICAEW definition and will report back

[snt]

Your solicitor is correct in the sense that turnover IS gross income ( total sales). How do you define turnover

I do not recall any successful accelerated based on turnover on this forum. There was a recent unsuccessful one. I'll try to search for the case when on PC

According to him Gross Income is not just the total sales BUT total sales - Cost of Goods Sold. see below link for screenshot.

http://bit.ly/2od2oIP

I am pretty sure Turnover=sales. I have asked my CFO for HMRC/ICAEW definition and will report back

appreciate your assistance. let's see!

[zimba]

Turnover is the TOTAL SALES of your business, it has NOTHING to do with the costs. The only things that are not included are generally credits taken, loans or any other money you received that is not from the sales of goods/services.

[snt]

Turnover is the TOTAL SALES of your business, it has NOTHING to do with the costs. The only things that are not included are generally credits taken, loans or any other money you received that is not from the sales of goods/services.

thanks Zimba but how to be sure how HO interprets it?

[zimba]

thanks Zimba but how to be sure how HO interprets it?

Let's see what Companies Act 2006 Section 474 says:

“turnover”, in relation to a company, means the amounts derived from the provision of goods and services, after deduction of
(a)trade discounts,
(b)value added tax, and
(c)any other taxes based on the amounts so derived;

[Malikwaheed]

Just want to update you on turnover you are 100% right turnover is equal to sale but in my case they count net sale which is also wrong my total sale was 6.7m but the case worker make only 4.5m.so you need to be very careful I will suggest you apply extension first and then apply ilr otherwise you might get refusal just because of spelling mistake or may be case worker says today weather is not sunny so am refusing your application.

[seasky]

Just want to update you on turnover you are 100% right turnover is equal to sale but in my case they count net sale which is also wrong my total sale was 6.7m but the case worker make only 4.5m.so you need to be very careful I will suggest you apply extension first and then apply ilr otherwise you might get refusal just because of spelling mistake or may be case worker says today weather is not sunny so am refusing your application.

Malik, you never shared we CW did not accept 2.2m of revenue (right or wrong...)? Without that info ur case does not help OP.
Clearly VAT alone does not cover that.

[Malikwaheed]

This is the question I ask them in AR. No reply till today it's exactly 30 days past today my Soliciter received yesterday letter from home office stating they need 14 days more time

[seasky]

Malik,

So in refusal letter they just said they accept £4.5m and not the other £2.2m but without any reason (logical or not....)

Does yhe £6.7m include VAT?

[snt]

thanks Zimba but how to be sure how HO interprets it?

Let's see what Companies Act 2006 Section 474 says:

“turnover”, in relation to a company, means the amounts derived from the provision of goods and services, after deduction of
(a)trade discounts,
(b)value added tax, and
(c)any other taxes based on the amounts so derived;

thanks, that sums up my understanding as well

[snt]

Your solicitor is correct in the sense that turnover IS gross income ( total sales). How do you define turnover

I do not recall any successful accelerated based on turnover on this forum. There was a recent unsuccessful one. I'll try to search for the case when on PC

According to him Gross Income is not just the total sales BUT total sales - Cost of Goods Sold. see below link for screenshot.

http://bit.ly/2od2oIP

I am pretty sure Turnover=sales. I have asked my CFO for HMRC/ICAEW definition and will report back

@ seasky, did you manage to get some clarification on this?

[seasky]

Your solicitor is correct in the sense that turnover IS gross income ( total sales). How do you define turnover

I do not recall any successful accelerated based on turnover on this forum. There was a recent unsuccessful one. I'll try to search for the case when on PC

According to him Gross Income is not just the total sales BUT total sales - Cost of Goods Sold. see below link for screenshot.

http://bit.ly/2od2oIP

I am pretty sure Turnover=sales. I have asked my CFO for HMRC/ICAEW definition and will report back

@ seasky, did you manage to get some clarification on this?

I am sitting with him now and still not getting a great answer (accountants....) some pointers (and this may be relevant to malik)

1. government grants are part of turnover
2. While VAT is clearly not part of turnover, but if you read sections (c) in Zimba's company house input you will see that "any other taxes based on the amounts so derived;" he says that could be the tariffs on car fuel and alcohol (Malik are you selling either of those?), which can be a large percentage of the customers sales (Fuel I know to be 65p per liter and with VAT the actual revenue is quite low....)

[snt]

I am pretty sure Turnover

I am sitting with him now and still not getting a great answer (accountants....) some pointers (and this may be relevant to malik)

1. government grants are part of turnover
2. While VAT is clearly not part of turnover, but if you read sections (c) in Zimba's company house input you will see that "any other taxes based on the amounts so derived;" he says that could be the tariffs on car fuel and alcohol (Malik are you selling either of those?), which can be a large percentage of the customers sales (Fuel I know to be 65p per liter and with VAT the actual revenue is quite low....)

great! so we all agree what turnover is.

now need to look for someone who actually got his/her accelerated ILR on the basis on turnover only. I see some successful cases on forum from 2011-12 but nothing significant after that.

[seasky]

I am pretty sure Turnover

I am sitting with him now and still not getting a great answer (accountants....) some pointers (and this may be relevant to malik)

1. government grants are part of turnover
2. While VAT is clearly not part of turnover, but if you read sections (c) in Zimba's company house input you will see that "any other taxes based on the amounts so derived;" he says that could be the tariffs on car fuel and alcohol (Malik are you selling either of those?), which can be a large percentage of the customers sales (Fuel I know to be 65p per liter and with VAT the actual revenue is quite low....)

great! so we all agree what turnover is.

now need to look for someone who actually got his/her accelerated ILR on the basis on turnover only. I see some successful cases on forum from 2011-12 but nothing significant after that.

This forum it is what it is. I guess there are not many who have accelerated extension and among those who have a much higher percentage use solicitors and not this forum (though anecdotal evidence from this board seems many solicitors cause more pain than value, I have encountered this myself...)

[snt]

This forum it is what it is. I guess there are not many who have accelerated extension and among those who have a much higher percentage use solicitors and not this forum (though anecdotal evidence from this board seems many solicitors cause more pain than value, I have encountered this myself...)

we do have a recent success story posted here. uk-tier-1-entrepreneur-visas/tier-1-50- ... 30927.html

[seasky]

This forum it is what it is. I guess there are not many who have accelerated extension and among those who have a much higher percentage use solicitors and not this forum (though anecdotal evidence from this board seems many solicitors cause more pain than value, I have encountered this myself...)

we do have a recent success story posted here. uk-tier-1-entrepreneur-visas/tier-1-50- ... 30927.html

Great and job well done. Took 11 months, quite an issue, not the way someone who leveraged a £50K investment to £5m profitable turnover should be handled. Either HO had doubts, had little experience in this matter or just generally incompetent