Entrepreneur visa extension

[helpingperson]

Hello DNF,

Thanks a lot.

[maak536]

Hi DNF,
congratulations.
My Tier 1 (Entrepreneur- £50k rule) visa extension is due in Aug/Sep this year. My company's year end is 30th June. I have some questions
1. I have transferred £50,000 into company's bank account from my personal account in the first year of my trading. Please correct me if I am wrong, the bank statements (both business account + personal account) should be sufficient to claim the points for Investment of £50k.

2. I employed 3 full time employees and 1 part time. My first employee was on fixed wages of £x,xxx/month (resigned last year). The payslips for this employee does not show number of hours worked because software was set up on annual/monthly basis. Do you think I should include this employee's details to claim the required "job creation" points. My other 2 full time employees have been employed for more than 1 year now, their payslips show number of hours worked and the pay rate.

3. My company provides bookkeeping services. My accountant that has approved my last 2 year's accounts is one of my client as well. Please advise, if this will create problems for me and should I search for another accountant. Accountant has already submitted, company's last 2 year's accounts to companies house and to HMRC.

Thanks for all your help.

[dnf]

Maak 536

1. Personal and business bank statements showing the director loan transactions plus the loan agreement, clearly outlining that the loan is unsecured and in favor of 3rd parties.

2. You should include all the employees - Provide a cover letter, explaining the hours of the the one with no hours on the payslips

3. I see no reason why there should be a problem with you using your accountant who is your client as well. He/she must be fully qualified and a member of ACCA/ICAEW/CIMA plus some otherbodies.

[maak536]

DNF,

Thanks for your reply.
1. I will make sure my DLA letter is as per HO requirements.

2. Do I have to include all of the employees, even part time employees and those who have resigned?

3. Yes, accountant is a registered with ICAEW. I should not be worried even company's bank statements show the sales receipts from that firm with their initials in the details of the transaction.

[dnf]

You don't have to include all the employees but if I was you, I would. This will be a clear indication to Home Office that you are running a genuine business, where of coarse employees leave.

[Ams2013]

Hi Dnf,

As you are the only Qualified Chartered Accountant in this forum, I need you professional advise on below queries please.

1) I have invested £50k by Director loan (DL) and the investment spread over three years i.e Year 1 unaudited accounts shows total DL 25K , Year 2 unaudited accounts shows total DL 35K and Year 3 unaudited accounts shows total DL 50K invested.

My query is should I send Just year 3 accounts where DL show total invested £50K as this will cover the requirement or do I need to send all years (1 , 2 & 3) accounts ?


2) As HO says your accounts must show investment with your name , I asked my Accountant to put my name beside long term liability in balance sheet but he said he can not put my name beside long term liability in Balance sheet due to statutory reporting requirements. He said he has put the explanation of long term loan as DL with my name in notes to the accounts section , is that fine ?

3 ) I have created two settled employment.( I had initial grant pre-April 2014)

Admin Assistant Job A - Full time Job existed for 15 months where Employee 1 worked from Month 1 (Apr )to Month 9 ( Dec) and Employee 2 joined from Month 9 (Dec) to Month 3 ( june ) of the following year both were in same job title Admin Assistant but different hourly pay rate employee 1 was at higher hourly rate than employee 2 and both employees shared month 9 due to the notice period of employee 1.

Sales Assistant Job 2 - Full time Job existed for 14 months where Employee 1 worked from Month 1 (Apr )to Month 2 ( May) of the following year.

Please advise if above 2 Jobs are fine with claiming the points ?

I really appreciate for your time in answering the above queries.

[business genius]

Hi DNF
I have filed last year accounts.the accounts shows the DL as long term and I'm the only director signed the Director report and Balance sheet.But I did not write the detailed description balance sheet note of Directors loan to mention the Director name and loan is unsecured.Now I have to filed 3rd years account.
Do I need to amend that note and file the amended accounts or file the 3rd year accounts and update the DL note in 3rd years accounts.
I don't want to take any risk because I have to file 2 years statutory accounts and one year Management accounts as my company's financial year closing date is 31 March and I m applying for extension in July.
Many thanks in advance.

[noajthan]

@business genius,
Kindly do not hijack other member's post.

You will end up with a convoluted mess of jumbled and confusing replies.
That is if any qualified accountant is available to reply.

[dnf]

It is important that the director loan is clearly mentioned on your name on the financial statements. Usually the loan is shown under liability and also disclosed under related party transaction on the financial statements. However, we are talking about home office here which is why taking extra precautions is the way to go. If you are the only director of the company and do not have your name mentioned on the accounts or related party transactions with respect to director loan than you may be able to argue with Home Office as the director loan on the balance sheet clearly indicates loan from the only director, which is you. However, if the company has more than one director than I would suggest to ensure that your name is clearly mentioned on the balance sheet, besides the director loan and under related party transactions.

Business Genius

You said, you have to file the 3rd year accounts - this mean that they are not filed yet and therefore you can certainly add the note. Dont worry if that note was not included in the previous accounts. If I was you, I would only provide the latest accounts anyway.

AMS 2013

I would suggest to only provide third year accounts, showing a full £50k loan. Your accountant can certainly add your name beside the long term liability on the balance sheet. I am not sure if Home Office will look into notes to accounts so I would prefer to have the name beside the liability on the balance sheet and on the notes.

It is correct that he will not be able to do that when filing those accounts to Companies House. However, management accounts and statutory accounts are 2 different things. Therefore, as long as everything else is the same than he can provide you the financial statements (management accounts) with your name beside the long term liability and file those same financial statements (statutory accounts) to companies house, which will not show your name beside the liability.

Your employment creation seems fine.

[business genius]

Hi DNF
You are right that I can only provide the latest accounts but I invested 50k last year and reflected in last years accounts.
However I know that current year accounts also show the corresponding year figures and I can give the detailed description of Directors loan in current year accounts.
But you know nothing is mentioned in policy guidance or rules for how many years accounts needed for home office.

[dnf]

Business Genius

The main reasons for them to look at the accounts are as follows:

1. Director Loan
2. Company is trading
3. They may ascertain genuine entrepreneurship from the accounts

As all the above conditions would be met than the latest year accounts would suffice. It is up to you if you want to send all 3 years accounts but than Home Office has done mistakes by looking at the wrong periods, which means that if they are looking at your previous year accounts, which does not mention your name besides the director loan than they may wrongly refuse your application.

Your call mate

[noajthan]

This topic is now a meaningless jumble of different questions that are unrelated to the original post from OP dnf.

As previously requested, suggest each person starts their own topic containing their own question.

Members (including member dnf if he wishes) may then reply to those individualised questions as may be appropriate.

[zamanam]

Thanks DNF - I found this thread as one of the most informative thread. Congrats and thanks. Is it possible to appoint you as accountant

Kind regards.