Query Regarding Tier 1E extension

[cutegirl21]

Hi All,

I am a sole director on a 50K route. My extension is due in three months. I have been taking a salary from my account in the last three years £670 per month for (34 months). roughly it means I took roughly £24K. My visa is expiring in two months. My company was in a loss in the first year and then in the last 2 years, the company is in profit. I have already transferred £55k from my personal account into a business already in the first 2 years.

My question is do I need to transfer all of this director salary of about £24k on the top £55k as I have heard that home office will consider that this director wage was a withdrawn as director reimbursement.

So is that right that I should transfer £55k(already transferred) + £24k (now) = £74K Total (£50K requirement +£24k back which I took as director salary.

Best Regards

[marcnath]

The general assumption is that the investment should not be used to pay your remuneration. It is a little unclear in the rules but it can be interpreted that way, so it is safer to follow that assumption.
If you company has had revenue, then you can claim that the salary is paid from revenue and not investment. If that is the case, it should be ok.
So, in general you should meet the two cases:
1) Cash investment > 50K (you meet this)
2) Cash investment + sales - salary > 50K (since you invested 55K and took a salary of 24K, if your revenue has been more than 19K, you should be ok)

[cutegirl21]

Hi All Members,

I have transferred director loan in the first 2 years from my personal account to a business account. I have put some money in the form of chq and some as an online transaction. I have a picture of chq and deposit slips of my personal to a business account. My question is that do I need a full month of bank statement in the period when I transfer the money or just particular that day transaction confirming that transaction from the bank statement.

Do I need any letter from my business bank account confirming this transaction through chq?

Do I need any other letter from a business account like sole signatory letter? do i need any other letter from banks in the application of extension?.

Regards

[cutegirl21]

The general assumption is that the investment should not be used to pay your remuneration. It is a little unclear in the rules but it can be interpreted that way, so it is safer to follow that assumption.
If you company has had revenue, then you can claim that the salary is paid from revenue and not investment. If that is the case, it should be ok.
So, in general you should meet the two cases:
1) Cash investment > 50K (you meet this)
2) Cash investment + sales - salary > 50K (since you invested 55K and took a salary of 24K, if your revenue has been more than 19K, you should be ok)

1. My company was as this

First year in a loss of £8k
Second Year (£52k sales - £40k expense = £12k profit)
Third Year ( £65k sales - £64k expenses= £1k profit)

I have put 55k cash from personal to business, someone told me that put (55 (24-5) = £19k more from my personal to my business.

Is that right doi need to put more money.??

Regards

[marcnath]

Based on the numbers you have put, your salary is more than covered by the sales (not clear what the sales was in year 1).

Basically, in case HO ever asks, you are saying you used the money from your customers to pay your salary i.e your investment was not used for your salary.

Though I don't expect them to even ask given that the sales is so much higher than the money you have taken out.

So, you should not need to put any more money in.

[cutegirl21]

Based on the numbers you have put, your salary is more than covered by the sales (not clear what the sales was in year 1).

Basically, in case HO ever asks, you are saying you used the money from your customers to pay your salary i.e your investment was not used for your salary.

Though I don't expect them to even ask given that the sales is so much higher than the money you have taken out.

So, you should not need to put any more money in.

Thanks for the clarification.

[cutegirl21]

Hi Zimba88,

can you please give your second kind opinion as well for more clarification and authentication about this query.


First Year (£25k sales - £32k expense = £8k loss)
Second Year (£52k sales - £40k expense = £12k profit)
Third Year ( £65k sales - £64k expenses= £1k profit)

I took 24k director wages in 3 years. I have put 55k cash from personal to business, someone told me that put (55 (24-5) = £19k more from my personal to my business.

Is that right do i need to put more money.??

Regards

[cutegirl21]

Hi Respected Members,

I have 3 questions to ask can a member or experts please kindly guide.

Q1. I have four full-time employees (1xbritish citizen, 1 EEA national 2x on visa not settled employee)
Do I need to send the passport, visa copy of all 4 employees or for just 2 employees of which I am claiming points?


Q2. What documents need to send for the employee in this list.
1. Passport Copy
2. Visa Copy (If its there)
3. NI Number copy
4. Proof Address.

Q3. If my employee is an EEA national will their National Card only will be fine as I asked my employee he said that he a Portugal national and he only have National Card he doesn't have a passport do I need his passport as well with the application or just National Card will be fine.

Regards

[zimba]

All your questions merged here. Please continue in this thread only

[cutegirl21]

Thanks zimba sorry I am new to this site, I will keep in mind for future. Zimba can you please kindly clarify my three questions mentioned in this thread:?.

1. Director Wages.
2. Bank Statement
3. Employee

Regards

[cutegirl21]

Hi Gurus,

Any suggestions?

[zimba]

1. Director Wages.

The logic is that such salary should not be paid from your investments. I say first deduct the salary from the turnover and then you should be able to cover all your expenses from the remianing (investments + anything left from the turnover).

Q1. I have four full-time employees (1xbritish citizen, 1 EEA national 2x on visa not settled employee)
Do I need to send the passport, visa copy of all 4 employees or for just 2 employees of which I am claiming points?

Just people you are claiming points for

Q2. What documents need to send for the employee in this list.

The GUIDE is VERY clear on this. Stick to exactly what the asked

Q3. If my employee is an EEA national will their National Card only will be fine as I asked my employee he said that he a Portugal national and he only have National Card he doesn't have a passport do I need his passport as well with the application or just National Card will be fine.

The rules only accept the passport not the national card

[cutegirl21]

1. Director Wages.

The logic is that such salary should not be paid from your investments. I say first deduct the salary from the turnover and then you should be able to cover all your expenses from the remianing (investments + anything left from the turnover).

Q1. I have four full-time employees (1xbritish citizen, 1 EEA national 2x on visa not settled employee)
Do I need to send the passport, visa copy of all 4 employees or for just 2 employees of which I am claiming points?

Just people you are claiming points for

Q2. What documents need to send for the employee in this list.

The GUIDE is VERY clear on this. Stick to exactly what the asked

Q3. If my employee is an EEA national will their National Card only will be fine as I asked my employee he said that he a Portugal national and he only have National Card he doesn't have a passport do I need his passport as well with the application or just National Card will be fine.

The rules only accept the passport not the national card

Hi Zimba so I have one employee he left my company 3 months ago he only gave National Card to me instead of Passport and he claimed that he never have the passport and always work and travel on this ID. I did not bother at that time, is there a risk now of rejection of my application due to this. I have his National Portugal Card, NI Number Copy Proof of Address.

[zimba]

It might be accepted but the rules only mention the passport.

[raj.m]

It might be accepted but the rules only mention the passport.

Hi Zimba88,

I have a similar situation. However, this is what I found in the guide.

"If the employee is an EEA national, the biometric data page of a passport containing
their photograph and personal details, or a UK registration certificate/permanent
residence document;"

Is permanent residence document not same as their national card?

Thanks

[cutegirl21]

Is permanent residence document not same as their national card?

Hi raj I believe here permanent residence document means when EEA national got indefinite leave of UK after they stay in the UK for 5 years not an EEA National Identity Card. But I believe gurus and zimba can clarify this confusion better.

Regards

[marcnath]

Is permanent residence document not same as their national card?

Hi raj I believe here permanent residence document means when EEA national got indefinite leave of UK after they stay in the UK for 5 years not an EEA National Identity Card. But I believe gurus and zimba can clarify this confusion better.

Regards

Yes, that is correct. Permanent residence card is issued by UK authorities and is the equivalent of ILR for non-EEA citizens. National ID card is issued by the home country.

@cutegirl21 - I suggest you write something in the cover letter about not having the UK residence card. Quote the reference to the UK right to work checks (which don't need the residence card) and https://www.gov.uk/apply-for-a-uk-residence-card, which also states that they don't need a residence card. You can also argue that the requirement for the residence card is a relatively new one (it came only in the 2017 guidance), so you did not require the residence card based on the rules in place at your Visa grant