What changes do we make according to new rules !!!

[hham1224]

Transferring 50,000 from personal account to business account means you have invested 50,000. It never means you must have to buy some thing and to show as an investment. Whatever you earn from your business; you put that in your business account, similarly what you spend in your business; you spend it through your business account. Whatever you do, you have to produce a document. If you work through a plan, by the end of 3 years; the documents might end up of worth £110,000 of money Coming IN and OUT of your business including Expenditures, Salaries, Profits, Taxes etc. (50,000 + 20,000 + 20,000+ 20,000) Assuming 20,000 is your earnings per year.

The first step is to get visa. After that, it is same like thousands of HSMP's are doing their businesses.

Hope you got the point.

Well I think you didn't understand my point and I am a Chartered Accountant and being an accountant i don't recommend to put your money in your business account because if your business went busted then you will lose your so called £50,000. In addition to this, if it is not busted/closed/sued than from the corporation tax point of view, it is very easy to put something in your business account at no cost but it is very difficult to take it back without paying any tax liability. So very effective tax planning is necessary. That is way I strongly disagree with UKBA over the £50,000 maintenance till they are fully invested. It is more than what you have thought.

In addition, because the rules are not clear so it you come back to UK than upon arrival, not to mention, Heathrow official will throw red carpets and asking detail questions where the funds are located. The leave can be curtailed.

I dont mean to offend you but this is the truth.

Hope this may help.

[RizKCB]

You are well qualified in accountancy than me. I do not belong to any accountancy back ground neither I have much knowledge. I definitely agree with you. Maybe I wrapped all of your findings without any risk involved and later you have pointed out major risks.

Your point of disagreement with UKBA is valid. I would never like to put 50,000 in UK bank and specially in association to a business. But most of us have no other option. My application is already submitted and visa is already expired.

I think it doesn't matter if we pay taxes to justify our documentation as a price to live here. 'Effective Taxation' which you have pointed out could be the way out. It could be difficult but possible. To keep 50,000 is better than 200,000. Its up to the professionals like you who may find out the best way to cope the situation according to the rules and in favor of applicants as well.

As far as Red Carpet is concerned... anything could happen but never mind, at least I can't live with so many fears and it is not the end of world.

[MNaveedonline]

You are well qualified in accountancy than me. I do not belong to any accountancy back ground neither I have much knowledge. I definitely agree with you. Maybe I wrapped all of your findings without any risk involved and later you have pointed out major risks.

Your point of disagreement with UKBA is valid. I would never like to put 50,000 in UK bank and specially in association to a business. But most of us have no other option. My application is already submitted and visa is already expired.

I think it doesn't matter if we pay taxes to justify our documentation as a price to live here. 'Effective Taxation' which you have pointed out could be the way out. It could be difficult but possible. To keep 50,000 is better than 200,000. Its up to the professionals like you who may find out the best way to cope the situation according to the rules and in favor of applicants as well.

As far as Red Carpet is concerned... anything could happen but never mind, at least I can't live with so many fears and it is not the end of world.

Hi. If my uncle transfer 50,000 pounds in my personal bank account for enterprenuer visa then HM revenue demands tax for this personal account of 50000 pounds. thanks

[RizKCB]

Why will HM Revenue demand tax on 50,000 transferred in your personal account????????

[MNaveedonline]

Why will HM Revenue demand tax on 50,000 transferred in your personal account????????

I am just asking reason, why they do not charge on personal account and if same money transfer into business account so then HM revene will charge tax.

[RizKCB]

I am not an accounting person but my basic knowledge says that a personal bank account can be used for paying bills, saving money, getting salaries etc. Mean to manage your running personal expenses on routine basis. The money in it is assumed to be your personal money unless you do not declare or inform it is taxable or business money.

But the money in Business account is not your personal. It is assumed as business money. It relates to business cash flow and transactions which needs to be justified in order to fulfill company's taxation requirements. You cannot take out money from it for ongoing personal needs.

Some accountancy literate guy can give you better idea.

[alex87]

^^ Your company's account is different from your own personal account. A company is a separate legal entity and therefore, unlike the kind of access you have when it comes to your personal account, you cannot withdraw money from your business account for your own personal needs as that money is not legally your own money once it goes into the business account.

[rehan01]

My recommendation seek first get the visa than seek proper professional advise from Accountant before transferring funds from your personal account into business account.

As investing 50k or 200k into a business is not a joke and proper planning need to be done in regards to investment of money into business and also need to keep the prove evidence of it for extension and have on going access to funds.

regards

[hham1224]

My recommendation seek first get the visa than seek proper professional advise from Accountant before transferring funds from your personal account into business account.

As investing 50k or 200k into a business is not a joke and proper planning need to be done in regards to investment of money into business and also need to keep the prove evidence of it for extension and have on going access to funds.

regards

Well I think you now have the idea how complicated things are, from the tax point of view. In simple language if you put it in your business account (whether you are working as sole trader or through ltd company) the only way you can get it back will be in terms of dividends or salary. So you pay tax and NI by withdrawing same money.

The only exception to this is you just give a director loan/loan to the company or your business. This way you can get it back without hitting any tax charge.

Again, even the director loan would not give you 100% guarantee that you don't pay any tax. When it comes to file to your personal tax return than you may have to declare the amount (if applicable).

Being an accountant, I recommend to seek professional advice as there is very effective tax planning is necessary if you want to put your money in your business.

The above advice is general advice and it varies on the individual circumstances.

I hope this helps.


Kind regards

Hammad

[RizKCB]

Can we include Dividend Income as part of our Investment? Assuming all taxes are paid on it.