Director loan and Business activity

[gt23]

Hi

Few questions-

My company is Consultancy

1) I got my entrepreneur visa in Jan 2014. I am due for extension in Jan 2016. I have £50k which i need to invest. If i invest it now in the form of director loan to my company will i need to further show that my company has used that money for anything or is it ok to have them in my business account? As i am not sure where to use that money at the moment as my company is making profit.

2) Directors loan - Has anyone got a template, how it should be? I have seen few but i am not sure what UKBA requires? Does this needs to authorised by solicitor or an accountant?

3)What is counted as an investment? I have paid rent for my office for last 2 years, Will that be counted as i have still not given directors loan to the company?

4) When i apply for extension, do i need to show what company contracts I have got and other activity in the business in last 3 years.

Thanks

[doodle]

[1]
you need to invest them from your personal account to business account under the transaction " Business Investment" or " Director's Loan"
and there is difference between investment and spending, you need to show the investment of £50K

[2] Director's Loan
you can search on the forum, there are some examples. yes that need to be verified by accountant

[3]
yes it is (if you are paying from your business account and you have a rent agreement)


[4] They are not required for Extension according to policy Guidance

[gt23]

Hi doodle

Thank you for your reply.

1) So, just to confirm if i give director loan to my company of £50k from my personal a/c to Business a/c, My business does not need to spend or use the amount before i apply for my visa? So is director loan enough to show i have invested in the £50k.

2) With office rent it goes through my business account every month. But I spoke to the accountant he stated it is an expense for the business, not an investment. Can i have further clarification on that? These are the amounts i have paid before i have put my director loan in the business account

3) Also, does my business insurance, employees pay count as an investment? These are the amounts i have paid before i have put my director loan in the business account.

Thanks

[Mrchaany]

gt23
You are wrong
Director loan is must before your business investment take place.
Someone can sprend all fund via annual account plus show director loan.
If some one spend with no director loan agreement not acceptable to home office.
Office rent, employee wages, insurance all are investment of business plus show director loan as well.
And if some have not spend funds they can only show director loan agreement only.

How can someone run a company for last three year and not spending their £50000.

[gt23]

Hi

Thank you for your reply.

1) I did not give director loan to company till now because my company was making enough money,, so I was using that money for employees pay, rent and insurance. So if I give directors loan now of £50k that will be counted as investment? So will this be enough for HO or I need to further show where my company has used or are going to spend this directors loan?

2) So all the rent and employees pay i have paid in last 2 years won't be counted as an investment because I didn't give directors loan?

3)Also, do I need to show personal bank account statements to show HO director loan was transfered from my personal account ? It is a joint account with my business partner.

Thanks

[zimba]

1) I got my entrepreneur visa in Jan 2014. I am due for extension in Jan 2016. I have £50k which i need to invest. If i invest it now in the form of director loan to my company will i need to further show that my company has used that money for anything or is it ok to have them in my business account? As i am not sure where to use that money at the moment as my company is making profit.

You need to show that you invested it in the business as required in the guide. You do not need to spend it if you made enough profits.

2) Directors loan - Has anyone got a template, how it should be? I have seen few but i am not sure what UKBA requires? Does this needs to authorised by solicitor or an accountant?

Read the guide. There are certain things that must be mentioned on the loan agreement

3)What is counted as an investment? I have paid rent for my office for last 2 years, Will that be counted as i have still not given directors loan to the company?

Rent paid for office is business expenses and acceptable. Read the guide on what is NOT acceptable

4) When i apply for extension, do i need to show what company contracts I have got and other activity in the business in last 3 years.

No

[n8net]

Zimba, are you implying that if a business is in loss all the investment should be SPENT and not simply in the business bank account ? I think if u hv enough revenue, the money can be in the business bank account ?

[zimba]

Zimba, are you implying that if a business is in loss all the investment should be SPENT and not simply in the business bank account ? I think if u hv enough revenue, the money can be in the business bank account ?

You could be in loss but spend £10 from your investment (e.g profits £21,100, expenses £21,200, investment 50K ..... You will end up with £49,900 in the bank while your company is in loss)
The money can be left in the bank if your business had no need to spend all of it.