50k investment after extension

[softwareluv]

Hi everyone.

I just have two queries about the 50k investment fund and employment.

1.
I had that 50k in company account for whole period of initial 3 years and now another year of extension period.
Till date I have paid 52k in salaries for employees excluding my salary.

So does it mean that I do not need to maintain that 50k balance in company account anymore?

2.
Also after extension date, I have 2 employees full time who has finished 1 year each. I am thinking of sacking one employee as her performance has gone down.
So my question is, have I already satisfied 2 full time job condition so that i can fire this employee and hire new employee slowly by taking my time? Or will I have to keep these 2 jobs filled in until ILR?

Thanks for your replies in advance.

[marcnath]

Hi everyone.

I just have two queries about the 50k investment fund and employment.

1.
I had that 50k in company account for whole period of initial 3 years and now another year of extension period.
Till date I have paid 52k in salaries for employees excluding my salary.

So does it mean that I do not need to maintain that 50k balance in company account anymore?

2.
Also after extension date, I have 2 employees full time who has finished 1 year each. I am thinking of sacking one employee as her performance has gone down.
So my question is, have I already satisfied 2 full time job condition so that i can fire this employee and hire new employee slowly by taking my time? Or will I have to keep these 2 jobs filled in until ILR?

Thanks for your replies in advance.

1. There is never a need to maintain 50K in your bank account, even before the extension. The requirement was only to have invested it.
2. Immigration rules do not try to dictate how you run your business. There has never been a need to maintain the same employees at any time.

[softwareluv]

I think you got my questions wrong.

1. you do not need to maintain 50k in bank but if you invest 50k, you cannot take it out as director salary or dividend. it can only be used for expenditures and staff salaries. So my question was as I have spend 52k on staff salaries, it means that I have spend all invested 50k properly so I do not need to be worried about what balance left in business account. I just wanted to confirm that is correct to say?

2. I know you do not need to maintain same employee but I think i was just asking indirectly if in 2 years of extension, if we just have 2 employees in first year and no employees in second year, will that be ok as requirement just says we need to maintain 2 employees full time for 1 year. it can be first year or second year. am I correct in saying that?

[marcnath]

I think you got my questions wrong.

1. you do not need to maintain 50k in bank but if you invest 50k, you cannot take it out as director salary or dividend. it can only be used for expenditures and staff salaries. So my question was as I have spend 52k on staff salaries, it means that I have spend all invested 50k properly so I do not need to be worried about what balance left in business account. I just wanted to confirm that is correct to say?

"balance left in business account" is still confusing. But yes, since you have invested 50K and have been awarded points for that investment during your extension, there are no more conditions attached to that investment.

2. I know you do not need to maintain same employee but I think i was just asking indirectly if in 2 years of extension, if we just have 2 employees in first year and no employees in second year, will that be ok as requirement just says we need to maintain 2 employees full time for 1 year. it can be first year or second year. am I correct in saying that?

Yes, you only need to meet the requirement of 2 jobs for 12 months each during the extension period - it does not matter if it is at the start, end or anywhere in between.

[Manu_cal]

I had only 15k as balance when I applied for extension. And I never bothered to calculate how much I paid in salaries also I did withdraw my own salary all throughout. The 50k is considered invested as soon as it goes into the business account. After extension the 1 yr period of employment is refreshed. I guess the majority of the Tier 1 entrepreneur applicants will be doing their 10yr period also so if you fall in that category why bother showing employment and recruiting someone else if you don't need them .

[marcnath]

I had only 15k as balance when I applied for extension. And I never bothered to calculate how much I paid in salaries also I did withdraw my own salary all throughout. The 50k is considered invested as soon as it goes into the business account. After extension the 1 yr period of employment is refreshed. I guess the majority of the Tier 1 entrepreneur applicants will be doing their 10yr period also so if you fall in that category why bother showing employment and recruiting someone else if you don't need them .

Interesting. Did you have enough sales to cover you own salary ?
I agree with your interpretation that once invested, it is recognised. However, there is a section of the rules that can allow HO to decide otherwise. So, interested in knowing if HO is actually using that.

[PeterLove2008]

Hi everyone.

I just have two queries about the 50k investment fund and employment.

1.
I had that 50k in company account for whole period of initial 3 years and now another year of extension period.
Till date I have paid 52k in salaries for employees excluding my salary.

So does it mean that I do not need to maintain that 50k balance in company account anymore?

2.
Also after extension date, I have 2 employees full time who has finished 1 year each. I am thinking of sacking one employee as her performance has gone down.
So my question is, have I already satisfied 2 full time job condition so that i can fire this employee and hire new employee slowly by taking my time? Or will I have to keep these 2 jobs filled in until ILR?

Thanks for your replies in advance.

1. Any director's remuneration is not an investment. For example, if you took total £10,000 salary out of the total investment £52k, then you have only invested £42k. But salary for other employees and other business expenditures will count as investment.
And there is no need to maintain £50k in your business account. Every business should have business expenditures.

2. If you applied your T1E or GE visa before 6April2014, then you are covered, because you can either have 2 employees for 12 months each, or 1 employee for 24 months, this means you can combine them to a total 24 months to qualify for 2 equivalent full time jobs.

Hope it helps.

[natsha]

If you paying any amount to your employee that's your expense and this is call investment but if you took your salary 5000£ that's mean you withdraw 5000£ on share capital or Director loan. You must put this amount back before the extension.

[cutegirl21]

If you paying any amount to your employee that's your expense and this is call investment but if you took your salary 5000£ that's mean you withdraw 5000£ on share capital or Director loan. You must put this amount back before the extension.

Well, I don't fully agree with this sorry. If your company is in a loss all 3 years then yes, of course, you need to put your director salary amount back which you took as director wages if your company was at a loss.

But I took £22k as director wages in 3 years and my company is in my profit in last two years so I just need to put 50k +8k roughly for the first year when my company was in loss 58k no need to put the whole 22k as my company was in profit in last 2 years

I am sure other will aslo agree on this point. As in the last two years director wages took from company revnue not from company investment.

[marcnath]

If you paying any amount to your employee that's your expense and this is call investment but if you took your salary 5000£ that's mean you withdraw 5000£ on share capital or Director loan. You must put this amount back before the extension.

Well, I don't fully agree with this sorry. If your company is in a loss all 3 years then yes, of course, you need to put your director salary amount back which you took as director wages if your company was at a loss.

But I took £22k as director wages in 3 years and my company is in my profit in last two years so I just need to put 50k +8k roughly for the first year when my company was in loss 58k no need to put the whole 22k as my company was in profit in last 2 years

I am sure other will aslo agree on this point. As in the last two years director wages took from company revnue not from company investment.

Actually, you do not even have to be in profit.
All you need is sales. As long as the money you paid yourself is less than the sales, it should be ok.
There are two conditions to be met:
1) Total cash investment > 50K/200K
2) Total cash investment + Sales - Director remuneration > 50K/200K

[marcnath]

My balance is 67K cash in my account. I have put 73k from my personal to a business account in 3 years. My company was in loss in the first year and in now profit in last two years.

marcnath & gurus my question is if i have 65k cash in my account is there any issue in it, one of my friend said it may go in a wrong sense about you as CW might think that I have not invested 50k and whey 65k is still in his account

Was a bit confusing with the quotes. Hope I got your portion correct here.
If you have put 73K as investment and you are on the 50K route, you have met the requirement. HO/UKVI would have no objection to you investing more than needed
You need to have the proper proof for the investment (transfer in bank account from personal to business account). And it does not matter then whether you have more cash in the account - just shows you have a good business going.

[cutegirl21]

My balance is 67K cash in my account. I have put 73k from my personal to a business account in 3 years. My company was in loss in the first year and in now profit in last two years.

marcnath & gurus my question is if i have 65k cash in my account is there any issue in it, one of my friend said it may go in a wrong sense about you as CW might think that I have not invested 50k and whey 65k is still in his account

Was a bit confusing with the quotes. Hope I got your portion correct here.
If you have put 73K as investment and you are on the 50K route, you have met the requirement. HO/UKVI would have no objection to you investing more than needed
You need to have the proper proof for the investment (transfer in bank account from personal to business account). And it does not matter then whether you have more cash in the account - just shows you have a good business going.

Thanks for your clarfication, so I just need to send the proof of both personal and business account which will satisfy investment requirement..??

Do I need to send any invoices of expenses as well. ??? or just bank statements of transferring funds from personal to business account.


So is that right that rules are if I proof that I transfer from personal to business account that will consider as invested???

[marcnath]

My balance is 67K cash in my account. I have put 73k from my personal to a business account in 3 years. My company was in loss in the first year and in now profit in last two years.

marcnath & gurus my question is if i have 65k cash in my account is there any issue in it, one of my friend said it may go in a wrong sense about you as CW might think that I have not invested 50k and whey 65k is still in his account

Was a bit confusing with the quotes. Hope I got your portion correct here.
If you have put 73K as investment and you are on the 50K route, you have met the requirement. HO/UKVI would have no objection to you investing more than needed
You need to have the proper proof for the investment (transfer in bank account from personal to business account). And it does not matter then whether you have more cash in the account - just shows you have a good business going.

Thanks for your clarfication, so I just need to send the proof of both personal and business account which will satisfy investment requirement..??

Do I need to send any invoices of expenses as well. ??? or just bank statements of transferring funds from personal to business account.


So is that right that rules are if I proof that I transfer from personal to business account that will consider as invested???

The guidelines list the evidence needed for showing the investment.
If investment is as share capital:
- Accounts showing your shares and the value of the shares at the time of investment.
If investment is as Director Loan:
- Accounts showing the DL against your name
- DL agreement between you and the company
- Business bank statements to show that you transferred your personal money into the business

[cutegirl21]

My balance is 67K cash in my account. I have put 73k from my personal to a business account in 3 years. My company was in loss in the first year and in now profit in last two years.

marcnath & gurus my question is if i have 65k cash in my account is there any issue in it, one of my friend said it may go in a wrong sense about you as CW might think that I have not invested 50k and whey 65k is still in his account

Was a bit confusing with the quotes. Hope I got your portion correct here.
If you have put 73K as investment and you are on the 50K route, you have met the requirement. HO/UKVI would have no objection to you investing more than needed
You need to have the proper proof for the investment (transfer in bank account from personal to business account). And it does not matter then whether you have more cash in the account - just shows you have a good business going.

Thanks for your clarfication, so I just need to send the proof of both personal and business account which will satisfy investment requirement..??

Do I need to send any invoices of expenses as well. ??? or just bank statements of transferring funds from personal to business account.


So is that right that rules are if I proof that I transfer from personal to business account that will consider as invested???

The guidelines list the evidence needed for showing the investment.
If investment is as share capital:
- Accounts showing your shares and the value of the shares at the time of investment.
If investment is as Director Loan:
- Accounts showing the DL against your name
- DL agreement between you and the company
- Business bank statements to show that you transferred your personal money into the business

Thanks for clarification.

[Manu_cal]

I had only 15k as balance when I applied for extension. And I never bothered to calculate how much I paid in salaries also I did withdraw my own salary all throughout. The 50k is considered invested as soon as it goes into the business account. After extension the 1 yr period of employment is refreshed. I guess the majority of the Tier 1 entrepreneur applicants will be doing their 10yr period also so if you fall in that category why bother showing employment and recruiting someone else if you don't need them .

Interesting. Did you have enough sales to cover you own salary ?
I agree with your interpretation that once invested, it is recognised. However, there is a section of the rules that can allow HO to decide otherwise. So, interested in knowing if HO is actually using that.

Mate you should consider being an immigration consultant. Well you already do a good job . from past 1 yr I am in profit but first 2 yrs had losses. But my priority was to prove the genuiness and satisfy HO so didn't really bothered about loses. I managed to get work from my local council but I had to do that initially at a minimum profit.
I guess it paid off No complex issues , No hassle of interviews.
Keep doing the good work.