Investment of funds question

[Emjay87]

If your company was in loss so any directors salary you took is out of the directors loan .

£xxxxx (Director loan ) - £xxxx (Directors salary) = Investment as directors loan . if this is less than 50k or 200k you will need to reinvest this as directors loan or HO will not award any points for investment . Make sure to put all the money back during initial leave before you are due Ext . Money can just stay in company account don't need to spend if not needed by company .

Hello Moderators and Members,

I am seeking clarification on the investment of funds. When we say, the the funds invested must be traceable and can sit in the business account if not required to be spent, does that mean an investment plan should suffice.

I am on 50K category and my extension application is due in the third week of June 2017. I have invested/spent £22,000 over the past 14 months mostly towards company overhead costs and employee's wages as and when needed. I have now transferred 35K more into the Business account and I plan to invest a third of this investment towards paying company expenses due, and into marketing. (Only a month and a half remaining on my leave)

The question is; Can I leave the remaining funds in the business account, not spend it unless required and it will still be counted towards the points for investment - 50K?

P.s I am new to this forum, and I have a great sense of respect for all the member and moderators. if I have chosen the wrong thread or perhaps posted my query wrongly, then please excuse me and let me know what should change.

Kind Regards,
M.Jan

[CR001]

P.s I am new to this forum, and I have a great sense of respect for all the member and moderators. if I have chosen the wrong thread or perhaps posted my query wrongly, then please excuse me and let me know what should change.

I have split your post to its own topic here. It is considered rude to 'tag onto' another members topic and it creates confusion when members respond. Continue with all your questions in this topic/thread.

[zimba]

The question is; Can I leave the remaining funds in the business account, not spend it unless required and it will still be counted towards the points for investment - 50K?

Yes. There is no need to spend it all

[Emjay87]

P.s I am new to this forum, and I have a great sense of respect for all the member and moderators. if I have chosen the wrong thread or perhaps posted my query wrongly, then please excuse me and let me know what should change.

I have split your post to its own topic here. It is considered rude to 'tag onto' another members topic and it creates confusion when members respond. Continue with all your questions in this topic/thread.

Thank You very much CR001. I knew something wasn't right. I will do as instructed henceforth.

I appreciate It.

[Emjay87]

The question is; Can I leave the remaining funds in the business account, not spend it unless required and it will still be counted towards the points for investment - 50K?

Yes. There is no need to spend it all

Hi Zimba88, Thank you for your prompt response.
I have another question with regards to the maintenance of funds (10 points) I made a counting error and turns out that even if I made my application on the last day of my current leave, it will only be 89 days as opposed to 90 days.

Now, I understand that it is a risk that i'll have to take. However, is there another way out, can I use the 28 days grace period somehow. I mean may be delay the application a couple of days past my date of Tier 1 Ent'r visa expiry so that the funds are maintained for 90 days or over.

If that is something one can do, what are the repercussion?

[zimba]

I highly suggest to avoid making an out-of-time application (after the expiry of your visa). That means if you are refused, you get NO CHANCE to apply for another application.
Your maintenance must cover the full 90 days and the date of the last statement must not be more than 31 days from the date of your application. I am not sure there is a way around this.

[Emjay87]

I highly suggest to avoid making an out-of-time application (after the expiry of your visa). That means if you are refused, you get NO CHANCE to apply for another application.
Your maintenance must cover the full 90 days and the date of the last statement must not be more than 31 days from the date of your application. I am not sure there is a way around this.

Hi Zimba88,

Thank you once again. I will take a leap of faith and make my application on the last day of my current leave. As long as the application is posted on the day (last day of the current leave) I should be fine. please advise?

[zimba]

The date of your application is the date of posting

[Emjay87]

The question is; Can I leave the remaining funds in the business account, not spend it unless required and it will still be counted towards the points for investment - 50K?

Yes. There is no need to spend it all

Hi Zimba88,

i hope you are well. Can I get some help with Point 143 of Claiming Points for Attributes - Extension Applications (version 04/2017 Policy Guidance page 45)

Please note: If you are relying on funds invested in a business, any money you have already ‘spent’ for business purposes must be shown as investment in your financial accounts.

what does this mean exactly? does it mean that only the money spent counts as investment?

Please advise.

[marcnath]

I have another question with regards to the maintenance of funds (10 points) I made a counting error and turns out that even if I made my application on the last day of my current leave, it will only be 89 days as opposed to 90 days.

That is a tough one. As Zimba pointed out, not worth taking the risk of submitting beyond the date.

But I hope you do realise that the maintenance funds do not need to be in one account. They do not need to be in an UK account either.

So if you had some funds in any other accounts anywhere on the 90th day before the application date, you can use that. May be a scramble to get the documents but...

[Emjay87]

I have another question with regards to the maintenance of funds (10 points) I made a counting error and turns out that even if I made my application on the last day of my current leave, it will only be 89 days as opposed to 90 days.

That is a tough one. As Zimba pointed out, not worth taking the risk of submitting beyond the date.

But I hope you do realise that the maintenance funds do not need to be in one account. They do not need to be in an UK account either.

So if you had some funds in any other accounts anywhere on the 90th day before the application date, you can use that. May be a scramble to get the documents but...

Hi Marcnath,

Thank you for your input. I understand that two or more accounts can be used in combination to make up for 90 days maintenance. I think a bit of carelessness caught me badly there. Unfortunately, there aren't any other accounts in my name apart from an NRI account which i have been using to bring in the investment.
I will have to make an application on the last Day and hope that UK VI somehow rolls with 89 days statement.
while we are at it, How much is the maintenance exactly?


Also, my question earlier was regarding the Investment of funds. Can you suggest?

Kind regards,
Moin Jan

[marcnath]

Unfortunately, there aren't any other accounts in my name apart from an NRI account which i have been using to bring in the investment.

Moin Jan

You can submit your NRI account statement unless it is in a Bank explicitly listed by HO as not accepted.
I would strongly suggest that you get a letter from your Indian bank - it is simple enough. The letter only has to certify the balance on the one day that you are short of.

[marcnath]

i hope you are well. Can I get some help with Point 143 of Claiming Points for Attributes - Extension Applications (version 04/2017 Policy Guidance page 45)

Please note: If you are relying on funds invested in a business, any money you have already ‘spent’ for business purposes must be shown as investment in your financial accounts.

what does this mean exactly? does it mean that only the money spent counts as investment?

Please advise.

No, it does not mean "only the money spent counts as investment".

This is related to how your books are done up. You can, for example, have listed all your expenses in your Income statement. There are many ways in which that money can show up in your Balance sheet - as accounts payable, for example. Unless that amount is shown in the balance sheet as either shares or directors loan, it will not be counted towards the investment

[Emjay87]

Dear Moderators and Members,

I hope you are all well and working towards your goals with great commitment.
I made my Tier 1 Entrepreneurs (Extension) Application on 17th of June 2017. I received the acknowledgement letter a few days later and submitted my biometric information on 24th of June2017. soon after that, I received an "exceptionally complex" letter from the UK VI stating that my application will take longer to review.
Now I have a question;

Is it okay to relocate as a business (Change the registered business address - trading and correspondence) while the extension application is in process? We have moved to a better location, informed HMRC, changed the address with companies house and we are in the process of making announcements on the website and social media and to our clients.
Do you think that this might create confusion for the Home office while deciding my application at all?

Please advise

Kind Regards,
Moin Jan

[marcnath]

Dear Moderators and Members,

I hope you are all well and working towards your goals with great commitment.
I made my Tier 1 Entrepreneurs (Extension) Application on 17th of June 2017. I received the acknowledgement letter a few days later and submitted my biometric information on 24th of June2017. soon after that, I received an "exceptionally complex" letter from the UK VI stating that my application will take longer to review.
Now I have a question;

Is it okay to relocate as a business (Change the registered business address - trading and correspondence) while the extension application is in process? We have moved to a better location, informed HMRC, changed the address with companies house and we are in the process of making announcements on the website and social media and to our clients.
Do you think that this might create confusion for the Home office while deciding my application at all?

Please advise

Kind Regards,
Moin Jan

It should not matter