Evidence of money already invested not accepted

[syy]

Hi,

My visa application was refused on 30th Jan. I am not sure if it's worth appealing or not. Please help and give me some advice.

Access to Funds:
35K available in HSBC accounts + 19K already invested in business

Evidence I submitted:
1/ Business bank account statements with all the funds held
2/ Unaudited financial statements with a profit and loss account showing the amounts of money already invested (covering all cost of sales and expenditure)
3/ Spreadsheet recording my monthly expenditure and explanation of each cost/expenditure
4/ All receipts and invoices supporting the data on the spreadsheet
5/ Photocopies of my debit cards

Reasons of refusal
From the guideline, "46-SD(ii)(b) Audited or unaudited accounts must show the investment in money made directly by the applicant, in his own name or on his behalf". The accounts I submitted are not acceptable, as they do not show any investment of 19K in my name or made on my behalf. As no evidence has been submitted to show any investment by way of share capital instead of a direct investment, the evidence does not satisfactorily demonstrate your investment.

I don't understand why they do not consider the funds were made in my name while all receipts and invoices have my name on.

I looked online and found a different explanation. "Money made directly by the applicant" means money from the applicant's own pocket, i.e. savings. What I'd have better shown could be transactions from my personal account to the business account. However, the money I have been using is profits generated from the same business in previous years. The transactions are named under my customers/cash/cheques which do not show my name at all. PLEASE TELL ME IF THIS TRUE???

[tanvir1985th]

right as an accountant i will be able to guide u in this situation. sorry to hear yr refusal. u havent made one thing clear here whether u have a company or self employment. im guessing its a company. if its a company the only way u can show investment is by transferring money to business account for which u have to make a loan agreement with the company( by drafting a minute). or if u have taken over a company then by buying the shares( which will be done through solicitor and by paying stamp duty). i guess u didnt do any of them. spending money from yr account or business acc will not satisfy UKBA as they dont know whether its yr money or not. if u have got this business running for few years and generated profit to reinvest then there is nothing wrong with that. but u have to show that profit was withdrawn and reinvested in yr name at least for visa purpose otherwise its gonna be impossible for UKBA to differentiate between yr money and money paid by yr client. lastly the unaudited account u have prepared must be done by a chartered accountant.

so from the above circumstances i can say as u did not fulfil the requirement of UKBA, u might not win the appeal. but i would suggest u still go for the appeal and in the mean time get everything prepared again should u loose the appeal. not only that this time even in the appeal bundle provide the right document to convince the judge saying that u have definitely invested money, its just few documents were missing or not provided. having said so, it is highly unlikely that u will win the appeal but there is a slight chance u might win it. but at least u can run the business for few more months and generate more profit and can get yr documents right this time. thx

[syy]

Hi tanvir1985th,

Thank you for your advice! I am self employed so does this give me more chance to win? I assume money coming to my business account belongs to me and the business, so I can't understand why the investment is not in my name.

The unaudited account that was prepared was done by a chartered accountant, it includes: 1) A trading and profit and loss account, and 2) A balance sheet.

The investment I claimed is the total of cost of sales, expenditure and finance costs for the last 12 months which are basically all running costs and not a start up cost. Did I do the right thing?

[tanvir1985th]

Hi tanvir1985th,

Thank you for your advice! I am self employed so does this give me more chance to win? I assume money coming to my business account belongs to me and the business, so I can't understand why the investment is not in my name.

The unaudited account that was prepared was done by a chartered accountant, it includes: 1) A trading and profit and loss account, and 2) A balance sheet.

The investment I claimed is the total of cost of sales, expenditure and finance costs for the last 12 months which are basically all running costs and not a start up cost. Did I do the right thing?

did u invest money from yr business acc or personal acc? did u give a certificate from yr accountant that u have invested 19K?

[syy]

I spent money from my business account. There is not a specific certificate emphasizing 'I invested 19k' from the accountant. The total 19k comes from 3 separate figures on the balance sheet.

[tanvir1985th]

have u showed statements showing that money went from yr personal acc? does yr business acc have a name or its just yr name? i think yr accountant should have provided a certificate to u mentioning yr investment and where exactly it shows in the balance sheet. coz thats the requirement of the UKBA.

[syy]

I only showed statements from my business account as in my name. My name is SYY (for example). My business account is named as SY Ceramics which is registered under my name. However, I didn't provide statements from my personal account.

I see your point of providing more detailed doc prepared by my accountant. I've booked an appointment with a solicitor in town this Wednesday. If he recommends the same thing, do you think I should go for the appeal by providing some extra documentary from my accountant? How much chance do you think I have?

[tanvir1985th]

must go for appeal whether loose or win to buy time and at the same time prepare better documents this time

[sasim1]

@ Tanvir being an accountant I need your help.
HO withdrew his appeal in November. Only one objection was "no trading activity and the contract you have submitted to show trading is a copy and each page have not been signed".
We are still waiting reconsideration decision. In the meantime ( In December) we sent home office
1 Original contract (We sent copy before with initial application)
2 Original business bank statement showing approx. 5800 balance+business transactions (we did not send business statement at the time of application bcz we opened business account after)
3 Chartered accountant letter confirming 10k investment (40k still in the joint account)
4 Management accounts
5 Accountant's report and client approval certificate
6 Trading and profit and loss account
7 Balance sheet
8 Tangible fixed assets schedule
9 Customer invoices and bank receipts schedule.

After withdrawal we have not sent
-Fresh joint account statement (showing remaining 40k).
-Directors loan agreement.
-Any business invoices
-New CAR
-In his letter Accountant also did not mention investment in the form of directors loan. He just wrote 10k investment. Please find below accountant's exact wording

This is to confirm that we act as accountants for (our company name) since its corporation on june 2013. Mr.....and Mr.... are directors and 100% shareholders of (our company name) and are actively involved in the day to day running of the business. We can confirm that during the period june to november Mr....and Mr.... have invested 10k in the business as shown by the management accounts for the period thereafter.
@ Tanvir as a accountant could you please advise us. Is there any thing should we must send to HO.
Could any body advise us any point please.
Olasunkanmi can you please also comment.
Thanks every one in advance.

[Olasunkanmi]

@ sasim1, how did you transfer the 10k into the business, as in what method did you use to invest the money in the business as the method of transfer/investment will determine what document you need.

[tanvir1985th]

dear sasim surely i will try to help u to the best of my knowledge. i am really convinced with the further documents u have prepared to send to UKBA. as u mentioned that u r director of yr company and invested 10K, I hope u have transferred that money from yr joint acc to business acc. yes u must make a director loan agreement with the company which would be in signed by all the directors on the date u have transferred money with all terms and conditions. I believe thats it job is done and wait for the good news

[sasim1]

@ Olasunkanmi we transferred 10k from our joint account.
@ Tanvir we have made a directors loan agreement but we did not send it to HO.

[Princess of Ammi]

Dear sasim

one thing that you should have been aware of is the compliance on the demand. when a decision is withdrawn by Home office it makes situation very uncertain as to what is going to happen. as you said only one objection they refused you with was taken back off later on it would mean that if they need or needed anything further they would contact you(withdrawal means a satisfaction on the grounds that thy used to refuse you), proving documents when it is not demanded may open more ways for a case worker to raise issue.
I recon you a sit down and wait for them to ask you for things if they need any rather than keep providing stuff that is not needed.

Dear SSY,

I had a similar situation I could lucky manage to arrange 50,000 as available and investment(whatever invested) on top, I still provided()Director loan etc. according to policy that it stipulates in terms of showing invested funds, but never relied on these invested funds to score points because I knew at the very 1st place that its very tricky home office to convince on the invested money.

lodge the appeal that you would have already,meanwhile try and arrange amount totaling up to 50,000 before invested money in case if a negative out come comes out and if you need to reapply
hope above helps

[Olasunkanmi]

@ Olasunkanmi we transferred 10k from our joint account.
@ Tanvir we have made a directors loan agreement but we did not send it to HO.

@ sasim1, since you transferred 10k from your joint account into your business account, then what you need to show is exactly the letter that your accountant wrote as it is a direct cash investment from your joint account which bear your names into your business account. You should also show the business account statement which shows the transfer from the joint account.

But for the purpose of you guys getting your money back from your business if you wish to, then its important that you have a legal director's loan agreement on ground as evidence that you will be needing your money back from the business in the nearest future. This is purely for the purpose of tax and proper accounting and you are not required to submit the loan agreement to HO since you have are claiming direct cash investment for your invested 10k.

[Irfanmz]

Dear tanvir1985thn,

Are you charted accountant? Is there any chance to get your contact details as I have tire 1 entrepreneur visa and looking for accountancy services for my limited company. Will wait for your reply

My email is nini2002pk@yahoo.com

Regards,

irfan

[Irfanmz]

Dear members I have similar question, I have tire 1 entrepreneur visa and it's been one year I am successfully running IT supports businesses. For extension I would require to invest 50k in three years I have already invested 25k in first year but my investment was made directly from my business account I do not yet setup director loan agreement or any thing but I certainty can prove that money in my business account was directly transfered from my personal account. I just wanted to ask if this satisfies home Office requirements of money invested on my behalf or what can I do to show that 25k I have already invested was from me.

And lastly I have spent around 10k to lease for a small business unit for my business does this includes as an investment???? or its business expenditure?

your response will be highly appropriated

Thanks

[tanvir1985th]

dear irfanmz. i am not a chartered acc. in your matter for the purpose of extension u need a chartered acc.

[Irfanmz]

Dear Tanvir, thanks for your reply. is there any chance i can please get some information on following matters??? thanks


"Dear members I have similar question, I have tire 1 entrepreneur visa and it's been one year I am successfully running IT supports businesses. For extension I would require to invest 50k in three years I have already invested 25k in first year but my investment was made directly from my business account I do not yet setup director loan agreement or any thing but I certainty can prove that money in my business account was directly transfered from my personal account. I just wanted to ask if this satisfies home Office requirements of money invested on my behalf or what can I do to show that 25k I have already invested was from me.

And lastly I have spent around 10k to lease for a small business unit for my business does this includes as an investment???? or its business expenditure?"

[tanvir1985th]

dear irfanmz. lease is a long term investment which depreciates every year. so say yr 10K lease is for 10 years for which 1K will be recognized as expense every year and the remaining balance will be long term asset. so yes that will be part of yr investment.

[Irfanmz]

Thank you very much Tanvir for your great advise you are a star, Thanks

could i please ask your advise on this as i mentioned in my last post that for my intial ent t1 leave i transferred 50k from my personal bank account in my business bank account and now all the expenditure ( or investment) i am doing is directly from my business account with invoice (my name on) i was just wondering if this is right?? shell i continue doing this ? Does this fulfil how office requirement of investing money on my behalf?

and last question is all the wages i pay to my employee does this considered as investment ????

sorry for being pain, your kind reply is much appreciated. Thanks

[tanvir1985th]

i would suggest make the invoices in the name of business showing u as director on the invoice. make a director's loan agreement for 50K transfer. wages is not investment, its expense.thx

[Irfanmz]

Thanks Again Tanvir,
how about if I buy 100 %shares for my company for the money I have given to the company, instead of director loan agreement? Could you please mention how director loan agreement going to help me with this??? Thanks Sir!!!!

[tanvir1985th]

If u r the founder director then u can't buy share rather u just issue share and own it. If the company was established by somebody else and u became a director later on, then u can buy share.loan agreement is just a minute signed by all directors saying u r loaning the company for that long, with that much interest etc etc

[Irfanmz]

Thanks Again for this useful information. I am sure every one will benefit from it.

can director loan be signed any time???? As I already have made some investment, Do you have sample copy of it to share please? my email is nini2002pk@yahoo.com

Thanks Sir!

[tanvir1985th]

I don't have any. But u can have from online