Third Party Funds - From Abroad

[hina_pirzada]

Dear Members,

Most of us used third party evidence of funding at the time of initial application. After that there is any requirement the Third Party can transfer funds from abroad to your personal bank account and then you transfer in your business account.

For example if third party ask someone to transfer money from UK personal account of my personal account and then I transfer in business account which shows my name so there is any issue will be raised by HO.

In policy guidance page 44, stated that
132. You must show that either the full amount of £200,000 or £50,000 if appropriate, in cash has been invested in business in the UK.

In the above point they ask the prove of investment which can be easily meet by providing Business Bank Statement , Accounts Report and relevant documents.

If someone only provide Business Bank Statement which shows the money transfer in the account by his / her name so there is any issue or HO ask to provide personal bank statement where the money was transferred.

Can senior members please reply on my query.

[dnf]

There is a requirement to clearly identify the funds being transffered from the personal account and credited into the business account.Both statements (business and personal) need to show the funds bu highlighting them during the application. If the third party transfers funds directly to the business account than you will not be able to show them being transffered from your personal account.

The concept behind this is that you need to show that you are providing director loan to the business. If the third party transfers directly to the business account than this will not class as director loan but a third party loan.

I would therefore suggest to get the third party funds to your personal account first so that you could transferthe funds to the business account.

[hina_pirzada]

Hi Dnf,

Thank you for your reply. My third party base in abroad. He is paying me through one of his friend who base in UK

His friend credit the amount in my account what I need then I transfer in Business account from my personal.

For Example the third party name is Mr ABC and the funds transfer in my bank account Mr DEF so it will consider or not.


Please reply

[dnf]

Requirement is £50k of director loan from your personal account to business, which will be done as the third party is transferring to your personal account. I would not do anything else.

If you want to go an extra mile than get a letter from your overseas third party that in order to save the bank charges and exchange rate, your third party has instructed his representative (insert name of the person in UK) to transfer the agreed funds into your account.

Home Office has no jurisdiction over what a third party does as long as the funds are genuine/legal and are in your account- period

[hina_pirzada]

Thank you dnf.

One more thing if you would like to clear. How the cash amount be identifiable. I have deposit two separate amounts as cash in my business account £ 2500 and £4000. The reference appear on my bank statement is

Business Invest 2500.00

So can I draft director loan for the cash amount as well

Please reply.

Thanks

[dnf]

Yes, you can draft director loan for cash amount as well but home office may raise a query saying that the cash amount was not readily identifiable that it came from you, which is why, I would ensure that I cover myself.