Investments

[nagisons]

Hello Everyone,


there are couple of questions which i want to clear before the investment.

Which kind of the payments would be the investment in the business (Like Wages, Salaries, Rents, Business Rates, Equipment, stored Stock, ETC )
How do i declare the investment has been made in the current running business? Means Only invoices and Chartered accountant's Audit accounts.

for employees- Do i need to submit all P11, P46, P45 As these documents are mentioned in the UKBA guideline?
for investment- What kind of documents do i need to be submit at the time of extension - Or which supporting documents would be acceptable?

Would you be so kind to clear these points.

I will appreciate your help.

Regards

[rahulsingh1]

mate, there are tons of threads answering this question. did you read the forum first ?

Answer to your question is,
if you are running a limited company, just transferring the money from your personal bank account to your business bank account is termed investment.
Now that your business owns this money- how it chooses to spend it (Like Wages, Salaries, Rents, Business Rates, Equipment, stored Stock, ETC ), is not the business of HMRC or UKBA.

If you are self employed, and due to virtue of that you have no business bank account, then all of the above will be termed investment.

Proof of investment for limited company is just your un-audited accounts and HMRC company filings. thats it. nothing else is required.

[business genius]

Hi Nagisons

Investment to spend the funds for the establishment of business like capital expenditure.
The wages, stationery, advertising are business running expense and are not investment.
Hope this would be clear to you or you can ask from me further.

[Olasunkanmi]

Hi Nagisons

Investment to spend the funds for the establishment of business like capital expenditure.
The wages, stationery, advertising are business running expense and are not investment.
Hope this would be clear to you or you can ask from me further.

@ business genius, all funds spent on the business like, wages (except director's remunerations), stationery, adverts e.t.c are all counted as business expenses and are classed as investment funds.

[nagisons]

Hi Nagisons

Investment to spend the funds for the establishment of business like capital expenditure.
The wages, stationery, advertising are business running expense and are not investment.
Hope this would be clear to you or you can ask from me further.

@ business genius, all funds spent on the business like, wages (except director's remunerations), stationery, adverts e.t.c are all counted as business expenses and are classed as investment funds.

Hello everyone

Thanks for your reply.

It's more likely to me, if I'm utilising 50k from my business account for business use only. It will be investment automatically.
Or
If Im running business with 50k. it means I can't spend money on stuff (rent furniture business rates wages stock ). I still need money to run a business. At the end of 3 years I can't show or prove this. Unless I spend my whole amount in expenses. and proved this the money been spend in development of business.
To run a business i always need to keep some money in my account. The money was in the running condition.



Maybe I'm confuse.
Please help me to clear my point.

Regards

[business genius]

Hi
Its not big issue
you just get confused, i cant find PM message service otherwise you can contact me I will clear all your concerns.

[kpatel700]

mate, there are tons of threads answering this question. did you read the forum first ?

Answer to your question is,
if you are running a limited company, just transferring the money from your personal bank account to your business bank account is termed investment.
Now that your business owns this money- how it chooses to spend it (Like Wages, Salaries, Rents, Business Rates, Equipment, stored Stock, ETC ), is not the business of HMRC or UKBA.

If you are self employed, and due to virtue of that you have no business bank account, then all of the above will be termed investment.

Proof of investment for limited company is just your un-audited accounts and HMRC company filings. thats it. nothing else is required.

hi rahul,

just to make thing more clear. r u saying if one can transfer £50k from personal acc to business acc and that will count as investment (from home-office point of view to get point for investment in visa application). does one need to produce any supporting document like director's loan agreement or other legal document showing how business got this money from visa application point of view (assuming one has registered company and he is only director and share holder of company ).

can anyone also put some light on this please. much appreciate your reply

[Celina]

Hi ,
Though I am no genius regarding this but I still doubt that by just transferring money from personal to business account for limited company will be termed as an investment . As far as my understanding UKBA wants us to inject money in the economy which will be classified as investment (from their point of view) .
Can Olasunkanmi or any other senior member can please shed some light in this ? it will be really appreciated .

Thanks
Celina.

[rahulsingh1]

ofcourse- you have to do the transfer. but in the company's account, you can show it as a direct investment or as a director's loan.

Depending on what you choose to show(direct inv or directors loan), you will have to create a directors loan agreement supporting that money transfer, which you will have to submit during extension.

[Olasunkanmi]

Whichever way you transfer the 50k funds into your business account, you will have to spend the whole 50k on the business in order to meet the investment criteria. Merely leaving 50k fund in business account is not enough for extension.

[Princess of Ammi]

yes, the money said to be 50,000 or 200,000 whichever appropriate need to have been invested in form of spent as the last post before mine expressed above.

some people even the seniors members of this forum have called whole money or the remaining money after a spent in a business account is the investment in terms of satisfying the condition at the time of visa extension which is totally wrong.

money relevant to visa need to have been spent within the 1st leave validity time (3 years) that enables an applicant to meet one of those conditions at the time of extension, one should not amuse and console himself thinking the money in a business account are or can be classed as invested.
none negotiation.

[kpatel700]

ofcourse- you have to do the transfer. but in the company's account, you can show it as a direct investment or as a director's loan.

Depending on what you choose to show(direct inv or directors loan), you will have to create a directors loan agreement supporting that money transfer, which you will have to submit during extension.

hi rahul, let's say one pick direct investment option for business as 50k fund available. does that mean, one can transfer money from personal acc to business acc without needing any documents( as oppose to director's loan to company, which need legal deed, a little complicated).

Can Olasunkanmi or any other senior member can please shed some light in this ?

all i need a proper answer->>>>> if someone to put his own £50k money (lets say from his personal acc) to business acc and start running business. now i know there is some information on director's loan to company as one option to finance your business, but is there any other option than director's loan to put/invest money in business (/business bank acc)??? and also qualifying for point for £50 fund as tier 1 applicant.