Tier 1 Extention PSW Route-How they consider 50K Investment

[patel_amit]

Hello All,

We have a limited Consultancy company and have few healthy contracts running throughout our visa period.

I need guidance in how to show 50K investment in our company account.

Reading through few posts I understand

1) If we have 50K in our joint personal acc. ( both directors joint holders) and we transfer it to our business account as an unsecured director loan it would do or not ?

2) Do we have to show expenses from this funds from our business account as we dont have any plans to hold an office yet.

3) We do have one employment since day 1 of our visa and also trade in medical instruments ( IMEX) via this business, However the amount used for this is from our contract earnings of business and not transferred from our personal accounts to business account. Will this buying amounts considered as investment ?

Feel free to ask any further details.

Each and every advise is appreciated.

Regards

[zimba]

1) If we have 50K in our joint personal acc. ( both directors joint holders) and we transfer it to our business account as an unsecured director loan it would do or not ?

Yes, given you follow the requirements in the guide and submit the documents as they want

2) Do we have to show expenses from this funds from our business account as we dont have any plans to hold an office yet.

I highly suggest to transfer money first as DL and then spend from business account

3) We do have one employment since day 1 of our visa and also trade in medical instruments ( IMEX) via this business, However the amount used for this is from our contract earnings of business and not transferred from our personal accounts to business account. Will this buying amounts considered as investment ?

No, money is considered invested if it is invested as DL or in form of shares. If you have not done this and spent it from your pockets HO will not recognise it as invested

[patel_amit]

1) If we have 50K in our joint personal acc. ( both directors joint holders) and we transfer it to our business account as an unsecured director loan it would do or not ?

Yes, given you follow the requirements in the guide and submit the documents as they want -
So, does this implies that if we take a 50K loan from personal to business accounts this would be enough for investments. We have speand a lot already from our business account - however this money was our business earnings for last 2 years and not loans or share capitals. Basically what we are saying is -

If we a take DL and keep that funds in business accounts. Apply for extension. and spend it when we need them after extension if needed.

2) Do we have to show expenses from this funds from our business account as we dont have any plans to hold an office yet.

I highly suggest to transfer money first as DL and then spend from business account

( Is it mandatory to spend this before applying for extension)

3) We do have one employment since day 1 of our visa and also trade in medical instruments ( IMEX) via this business, However the amount used for this is from our contract earnings of business and not transferred from our personal accounts to business account. Will this buying amounts considered as investment ?

No, money is considered invested if it is invested as DL or in form of shares. If you have not done this and spent it from your pockets HO will not recognise it as invested

The money is spend from our business accounts ( Business earnings ) but no DL or Shares. We earned the amount as Business profit.

Thanks it advice. Appreciate your prompt reply.

[zimba]

If we a take DL and keep that funds in business accounts. Apply for extension. and spend it when we need them after extension if needed.

yes, you need to do this.

Is it mandatory to spend this before applying for extension

No

The money is spend from our business accounts ( Business earnings ) but no DL or Shares. We earned the amount as Business profit.

Irrelevant. You still need to show you invested cash in the business for investment points to be awarded

[patel_amit]

Many thanks for your prompt reply.

King Regards