Director loan agreement

[nadeem75]

HI All respected members,
i am here tier1 entrepreneur entry clearance £200000 route,
i transferred the investment from my personal account overseas to uk business account in 3 instalments.
i am looking Director loan agreement format and how do legalized.
i consult a immigration lawyers, he said, best and professional way made 3 director loan agreement and dates as amount came in the company account. regarding the legalized, i am sole director so i have to sign on 2 place one as a company behalf and 2nd as a director and for witness solicitor said i will sign on loan agreement.

my 2nd question, salary i paid to employee for example before tax 1036.80 - income tax and ni tax 74.18 balance net pay £962.62 pm. so how HO will calculate hours on before tax salary or after tax.

regards
nad

[ishfaqsangra]

Solicitor is right with regards to directors loan agreement.salary I think will be counter on gross pay

[nadeem75]

Thanks ishfaq,
your reply is really helpfull, please advise if you have any Director loan agreement which is approved by Home office so i can get some help.
regards
nadeem

[ishfaqsangra]

If you follow the guidance and Loan Conditions are clearly mentioned then there should not be any issue.
Approved ? I can not provide as yet to go for extension

[Legal83]

1. your solicitor is absolutely right, draft 3 director loans and on covering letter do mention the total amount of 3 loans, which comes to the total of ?

2. you sign of company behalf, you don't need any solicitor to sign, any one can sign as a witness.

3. to claim 1 full time job, you need 1560 hours in total for 1 year on the basis of 30 hours a week, consult your accountant for all RTI, P11, P60, Payslips and etc, this relates to your accountant to provide you all documents.

[FKS21177]

I an on 50K tier 1 ent and we have moved money from personal to business in bits like 5000 , 8000, 3000, 2000 etc.. ... do we have to make separate director loan agreement for each transfer or can we make only one agreement saying that we will transfer 50K in 3 yrs ?

[Shah286]

Hi nadeem hope you ok. Can i have your contact number i need you help. Thanks
My number is 07429406071

[Tier1newbie]

There needs to be only one Director Loan Agreement which is to be dated after you get your visa and before the first transfer is done to the company's account mentioning that you are going to transfer the money. This money should reflect on your annual accounts and you can attach copies of your bank statement as well to further confirm that the funds indeed have been transferred. Just look at the policy guidance for the format of the agreement and you do not need to get it legalised, if you prepare it on the letter headed paper of the company that should be sufficient.

Contact your accountant and request for p11, annual employee records, employee summary and letter confirming employments created and period worked. You should also put in copies of employee contracts which will have the hours worked per week.

HI All respected members,
i am here tier1 entrepreneur entry clearance £200000 route,
i transferred the investment from my personal account overseas to uk business account in 3 instalments.
i am looking Director loan agreement format and how do legalized.
i consult a immigration lawyers, he said, best and professional way made 3 director loan agreement and dates as amount came in the company account. regarding the legalized, i am sole director so i have to sign on 2 place one as a company behalf and 2nd as a director and for witness solicitor said i will sign on loan agreement.

my 2nd question, salary i paid to employee for example before tax 1036.80 - income tax and ni tax 74.18 balance net pay £962.62 pm. so how HO will calculate hours on before tax salary or after tax.

regards
nad

[Tier1newbie]

No, you just need to have only one agreement which should mention that you are going to transfer the funds. Further proof of transfer will be that it will reflect in your annual accounts and you can even attach copies of bank statements.

I an on 50K tier 1 ent and we have moved money from personal to business in bits like 5000 , 8000, 3000, 2000 etc.. ... do we have to make separate director loan agreement for each transfer or can we make only one agreement saying that we will transfer 50K in 3 yrs ?

[bhaku]

Hello guys,
just a quick question before I send my visa application, if possible plz reply soon.

What date we need to write on the director loan document? is it current date for sign the document or the date we transferred money on the business account?

please help it out guys...

thanks

kind regards,

Bhaku

[irana2015]

Hi,

I believe so far everyone is saying that we should use the date on D ' Loan before the first transfer is done to the company's account.

Regards
IR

[nadeem75]

[quote="Tier1newbie"]There needs to be only one Director Loan Agreement which is to be dated after you get your visa and before the first transfer is done to the company's account mentioning that you are going to transfer the money. This money should reflect on your annual accounts and you can attach copies of your bank statement as well to further confirm that the funds indeed have been transferred. Just look at the policy guidance for the format of the agreement and you do not need to get it legalised, if you prepare it on the letter headed paper of the company that should be sufficient.

Contact your accountant and request for p11, annual employee records, employee summary and letter confirming employments created and period worked. You should also put in copies of employee contracts which will have the hours worked per week.

Hello,
As you wrote above, Director Loan's agreement will be ok on company letter head paper.
However my question is. Loan is giving to company by director.
Director is a separate entity so I believe it would be plan paper is better.

2ndly 1st amount came into company by my personal overseas account 95000/- and my company share worth is 1500/-
So my external ACC certified accountant done in balance sheet's entry in liability side.
Share capital 1500/-
Director's loan 93500/-
Please advise it is ok ?

Regards
Nadeem.

[nadeem75]

Hi respected members,
Please advise, as I am preparing the T1 entrepreneur
extentation, how many letters I need from accountant and what date should be.
Some I know like :
Job creations letter,
Loan by director confirmation letter
Please add remaining.

And question no 2. What is compilation report, and need every year or total 3years when going to apply for extension.
As I know balance sheet,p& l a/c etc. and what format for compilation report. Appreciation for kind support.
Regards
Nadeem.

[zimba]

Hi respected members,
Please advise, as I am preparing the T1 entrepreneur
extentation, how many letters I need from accountant and what date should be.
Some I know like :
Job creations letter,
Loan by director confirmation letter
Please add remaining.

And question no 2. What is compilation report, and need every year or total 3years when going to apply for extension.
As I know balance sheet,p& l a/c etc. and what format for compilation report. Appreciation for kind support.
Regards
Nadeem.

Depends on whether you started a business or joined an existing one. You need to supply extra documents like accountant letter for job creation and previous year FPS submissions for employees ONLY if you invested and joined an existing business. They are clearly described in the guidance so read them !!
FYI Loan agreement has nothing to do with your accountant as it is a legal document between you and your company, often prepared by solicitors.

Compilation report is simply a report that accountants often include in your accounts that declares they prepared the accounts according to the statuary laws on behalf of company directors. They also usually mention that they simply prepared the accounts based on what the directors reported and confirm if an audit was conducted or not. Sample:

Report of the Accountant to the director of {insert the company name} limited (the company)

These financial statements have been prepared in accordance with our terms of engagement and in order to assist you to fulfil your duties under the Companies Acts that relate to preparing the financial statements of the company for the {year/period} ended {xx/xx/xxxx}.
We have prepared these finance statements based on the accounting records, information and explanations provided by you. We do not express any opinion on the financial statements.
On the Balance Sheet you have acknowledged your duties under the prevailing Companies Acts to ensure that the company keeps adequate accounting records and prepares financial statements that give “a true and fair view”.
You have determined that the company is exempt from the statutory requirement for an audit for this accounting {year/period}. Therefore, the financial statements are unaudited.
The financial statements are provided exclusively to the director for the limited purpose mentioned above, and may not be used or relied upon for any other purpose or by any other person, and we shall not be liable for any other usage or reliance.

{signature of the accountant}

[nadeem75]

Hi sir,
Thanks for compilation report.

[FKS21177]

@zimba88 thanks for the compilation report sample, its very helpful.....

If possible can u plz share with us sample of DIRECTOR LOAN and can this loan be interest free ? coz my advisor told me to charge little bit interest on it. we are enterprenuer team

thanks in advance!

[zimba]

@zimba88 thanks for the compilation report sample, its very helpful.....

If possible can u plz share with us sample of DIRECTOR LOAN and can this loan be interest free ? coz my advisor told me to charge little bit interest on it. we are enterprenuer team

thanks in advance!

I do not have access to such a sample given that the loan agreement is a legal document drafted specifically by solicitors between you and your company. I suggest you consult a business lawyer/solicitor to draft this correctly and according to the law.

[rajrea]

Hello,
As you wrote above, Director Loan's agreement will be ok on company letter head paper.
However my question is. Loan is giving to company by director.
Director is a separate entity so I believe it would be plan paper is better.

2ndly 1st amount came into company by my personal overseas account 95000/- and my company share worth is 1500/-
So my external ACC certified accountant done in balance sheet's entry in liability side.
Share capital 1500/-
Director's loan 93500/-
Please advise it is ok ?

Regards
Nadeem.

Hi Nadeem,

I'm also in similar situation I got a Director's loan : £ 62,000
Share Capital : 55,000
So my question is can I show that I've invested a total £117,000 ( £62,000 + £ 55,000) ?
Will it be a problem if I show both ?
Please let me know your thoughts ....Any one please input your thoughts..

Thanks in Advance

[rajrea]

Hi ,

Can anybody please advise for my above comment

[zimba]

Hi ,

Can anybody please advise for my above comment

Yes, You can show investment in either of the forms cash or shares or both. You just have to provide all the evidence they need to show you fully invested 50K/200K

[helpingperson]

No, you just need to have only one agreement which should mention that you are going to transfer the funds. Further proof of transfer will be that it will reflect in your annual accounts and you can even attach copies of bank statements.

I an on 50K tier 1 ent and we have moved money from personal to business in bits like 5000 , 8000, 3000, 2000 etc.. ... do we have to make separate director loan agreement for each transfer or can we make only one agreement saying that we will transfer 50K in 3 yrs ?

Hello

Where in accounts it shows about director loan?

Will that amount match with your transfer from personal to business account which is in annual accounts?

[antobaby]

Hi zimba88,

My visa is up for renewal next year and wanted to ask if you can please share the list of documents you submitted when you sent yours.

Also in terms of director's loan, are there any specifics that HO requires we put in the agreement or not?

Thanks,
Anto

[zimba]

My visa is up for renewal next year and wanted to ask if you can please share the list of documents you submitted when you sent yours.

See: http://www.immigrationboards.com/uk-tie ... l#p1325772

Also in terms of director's loan, are there any specifics that HO requires we put in the agreement or not?

Yes, Have you read the guide ??