Directors remuneration and reinvestment over £50000

[ishfaqsangra]

I am a little bit confused about how much should I put extra as directors loan to compensate for directors remeunaration(salary)..
I got Enterprenuer April 2014.so lets take into account all remeunaration and salary after that.
From April 2014 till April 2016 my total salary is(p60s) is around £8000.In both these years the company has been in losses so I am understanding this as been taken from investment amount(invested as DL).
Company is now making profit since October 15(I m taking into account the quarterly cashflows) and it will be around £25000 although company accounts ending period is 31st October.
Additionally,I took £2500 from April 2016 till today.
Please advise how much should I reinvest as DL either £8000 when company was in losses and It is considered from investment or I should reinvest £8000+£2500 as company has not yet submitted accounts although quarterly cash flows indicates potential profit of around £25000?
Apologies for lengthy post but to explain the circumstances I thought to detail it as much as possible.
Thanks and regards.

[zimba]

It makes no sense to invest money in the company as director's loan and then take it out as salary and pay taxes on it. However If your salary came from the turnover then you are fine, otherwise you need to put all the money you spent on your remuneration (salary and taxes) back as you simply spent the investment on yourself

[ishfaqsangra]

Investment is as Directors Loan but cash also comes into the business and without salary the survival is difficult

If you read my post again ,please I have explained all the salary taken out and business losses for first 2 years.(in both years the turn over has been around 30,000 from sales/services but no profit)

As per my understanding, if you have taken salary and your business is not profitable then it is simply being considered from investment that's why I ask a suggestion should I reinvest those 8000
Now since the business is profitable(as perQuarterly cash flows) the extra £2500 taken should not be reinvested that's s what I think.

Please read my post again ,all details are there, and input your valuable suggestion

[zimba]

It has nothing to do with profits and it is not difficult to understand.
If your company losses are more than the amount of investment, then effectively you spent the whole amount.
As long as (Your salary < turnover - investment) you should be fine even if your company is in loss

[ishfaqsangra]

Now there is another worry for me.
From different posts on forum , I am with the impression that As long as I have transferred all investment from my personal account to business account and I am running my business and spent on marketing,assets, salaries,taxes etc I should be fine(even if all is not fully spent).

My third year is in profit expected:20,000(turn over of around 60,000)
In my first 2 years my total losses are :26359
Net Business account is: £42,000

Where am I stand now? (I can not through money for the sake of investment)

[ishfaqsangra]

Any suggestions please
Overall expenses are 74000 for both years.

[babaty2k02]

Any suggestions please
Overall expenses are 74000 for both years.

What of if you include your salary as part of the other employee salary, hence there will be only a line under salary, instead of

Director's Salary xxxxx
Employee Salary xxxxx..

Just a suggestion, as you're worried about Director's salary amount showing in the accounts

[noajthan]

Any suggestions please
Overall expenses are 74000 for both years.

What of if you include your salary as part of the other employee salary, hence there will be only a line under salary, instead of

Director's Salary xxxxx
Employee Salary xxxxx..

Just a suggestion, as you're worried about Director's salary amount showing in the accounts

Caseworker will still be checking up on correct and appropriate investment having been made; all compliant with visa requirements.

[ishfaqsangra]

Investment made is correct and those 74000 expenses are all relevant and correct as we moved from 17000 turnover in first year to around 60000 in 3rd year from 1 contract to 5 current contracts.
Many on the forum discussed and suggested that as long as they are transferred and being invested it should be fine.
Multiple posts on the forum concluded this.
Can I assume that the expenses of 74000 were from investment and cash in fron sales/services is in business account....

[babaty2k02]

Investment made is correct and those 74000 expenses are all relevant and correct as we moved from 17000 turnover in first year to around 60000 in 3rd year from 1 contract to 5 current contracts.
Many on the forum discussed and suggested that as long as they are transferred and being invested it should be fine.
Multiple posts on the forum concluded this.
Can I assume that the expenses of 74000 were from investment and cash in fron sales/services is in business account....

Personally, I think what the case worker will be looking for in order to award points under investment is the evidence to show required funds have been transfered/invested, from personal accounts to business account, in form of DL (or as required), and shown in the sections of the accounts.
The amount of expenses, sales, turnover, number of contracts, profit/loss etc, etc, might not be required to award points for INVESTMENT.

[ishfaqsangra]

In that case I should spend what is required and technically shohld be fine...
Any further advice anyone to buy a company car etc...just for the sake of investmwnt?

[babaty2k02]

In that case I should spend what is required and technically shohld be fine...
Any further advice anyone to buy a company car etc...just for the sake of investmwnt?

...Please note, my comments above is not definite. its just my personal view. Let the gurus in the group comment on it before making decision on it.

Thanks

[ishfaqsangra]

I understand thanks but this is the impression from multiple posts and few got extension as well