Can I show the employee salary as investment?

[sk10aaa]

Hello,

Currently I'm under PSW visa and planning to apply for Tier 1 Entrepreneur Visa. I have also registered a company.

I need clarification on the below points:
1) Can I employ someone on a permanent / contract roll for my company and show the salary being paid as part of investment?

2) Can I show the money I spent towards company expense (website design payment / accountant payment / hardware purchased etc) as a part of investment?

Lets say I pay 1000 Pounds (before tax) as salary for 6 months. Can I show 6000 Pounds as investment and the rest 44000 in my account while making the application?

Please clarify.

[tsl]

no

[sk10aaa]

Oh... I thought this is also a way of investing to the business.

Then what comes under investment? Can you / someone pls explain?

thanks,

[Legal Advisor]

Hi sk10aaa my lawyer advised, buying an office/property for business comes under investment.

[Legal Advisor]

And quite understandably, if you apply from psw £50000 route, then buying an office worth £50000 pound for business would meet the investment requirement for extension.

[sk10aaa]

Oh.....

On top of it, one has to create 2 full time positions for British Settled people is it?

thanks for the reply.

[maverick_76]

Answer to both your questions is yes. I am not sure why people are giving you incorrect advice. Any business expense is part of investment except your own salary.

[hammad1224]

Oh.....

On top of it, one has to create 2 full time positions for British Settled people is it?

thanks for the reply.

I have disagreement over this. I do not know what UKBA definition of investment is but in practice spending on your staff's training and development is an investment.

According to UK SSAP 13 Accounting for Research and Development, Development is defined as

"Use of scientific or technical knowledge in order to produce new or substantially improved materials, devices, products or services, to install new processes or systems prior to the commencement of commercial production or commercial applications, or to improving substantially those already produced or installed".

Normally investment means in plain English spending on something which has future economic benefits. Spending on the training and development is a future economic benefit.

I have highlighted services if you are in a serviced based businesses.[/i][/u]

[Legal Advisor]

Hi sk10aaa, regarding your query over employment creation;

You can even create only one employment for 24 months and qualify for extension according to Tier 1 (entrepreneur) policy guidance. And these 24 months can even be counted as first two years of your Initial Entrepreneur visa. Who agrees with me?

[rizwan567]

Yes, employee salary is an investment.

[sk10aaa]

Thanks for all your replies.

One more query. sorry for troubling you all again and again.

Assume that I have already invested 6k and showing 44k in my account while making the application.

If / Once my visa got approved, Is it enough if I create 2 full time jobs equivalent to 24 months (irrespective of the salary) or any type of investment equivalent to 44k (since I have already invested 6k before the visa approval), to qualify for extension

thanks

[akhan123]

Hi all,
does any one know how many employements to be created under the 200k category?

[sk10aaa]

@ akhan123,

I'm already asking too many questions and confusing the group here. I request you not to confuse more by adding your set of questions.

please.