TIER 1 ENTREPRENEUR VISA EXTENSION REFUSED 27th Nov 2017 - Need guidance

[marcnath]

Sorry to hear about that.
1. Yes, you can submit a new application - do that within 14 days.
2. You can't be on the payroll any more
3. Unless they specifically said 14 working days, assume it is calendar days.

[BK14]

Thank you for the feedback,

I have some questions below:

I did seek an advice from an experienced solicitor though he will consult a barrister for the plan of action. I, however, would like to go through a fresh application but now I know what the home office is looking for in my case since they have clearly indicated the missing paperwork.

I am still slightly confused about this investment issue, I initially applied for TIER 1 with Funds available from venture capital but on my extension application I did not submit the paperwork because of that one clause in policy guidance, HO explains that my name should have been there rather showing investment through my company so what does technically this means?

Do I need to redo the accounts if so what additional wordings etc I need to add in, the investment is over £71,000, also how do I get a copy of the CAR I did try to look on companies house but what exactly is CAR how does it look like?

Last but not least, do I really need to go through a solicitor? since I can see what HO needs and I can certainly provide that.

Best Regards

[marcnath]

Did you argue in your AR that you are not required to provide that documentation ? Did you quote the clause in Immigration rules ? In the response, did HO refer to specific clauses in the immigration rules.
If you can, please provide the full and exact text of the refusal letter.
I am assuming they are referring to 46-SD(a)(iv). And it is still not clear why you need the additional documents.
CAR can be got from http://wck2.companieshouse.gov.uk//wcfr ... ompanyInfo
You normally wouldn't need a solicitor but if the rules interpretation seems to be a problem then solicitors are the only ones who can do it more clearly.

[BK14]

Marcnath,

Thank you for your feedback, firstly I did argue the clause however long story short I will type in the refusal ground shortly for all to read. Also, the CAR link you provided did not work?

[BK14]

Please see the following AR refusal response from HOME OFFICE:

Further Information:

IF YOU HAVE ANY REASON TO STAY IN THE UK THAT YOU HAVE NOT ALREADY TOLD US ABOUT, YOU MUST TELL US NOW OR AT THE LATEST WITHIN 14 DAYS OF RECEIVING THIS LETTER USING THE APPLICATION FORM ON OUR WEBSITE: GOV.UK/UKVI. YOU SHOULD SEEK LEGAL ADVISE AS SOON AS POSSIBLE IF YOU ARE INTENDING TO STAY IN THE UK.

You claim that the decision to refuse your application was incorrect because it applied the Immigration Rules incorrectly and failed to apply the Secretary of State's relevant published policy and guidance.

However, the administrative review of your case has confirmed that the application was considered in accordance with the correct rules policies and guidance and correctly assessed against those rules policies and guidance. You applied for leave to remain as TIER 1 Entrepreneur Migrant and the application was therefore assessed under PART 6A and Appendix A of the Immigration Rules. Under those rules, you were required to demonstrate that you have invested money in a UK business, that you registered as a company director within six months of your last grant of leave, that you were engaged in Business activity at the time of your current application and that you can evidence the creating of at least two full-time jobs for at least twelve months. As stated in the original refusal decision letter, you failed to satisfy the requirement. Therefore we have maintained the original decision.

Within your administrative review application, you have made the extensive argument that you were not required to submit further evidence of investment into a UK business, as you had been awarded the required points for this attribute in your initial application of 29 August 2013. In support of this claim, you cite paragraph 46-SD(a)(iv) of appendix A and paragraph 139 to 142 of the Secretary of State's published guidance.

In the first instance, the points awarded in your initial application were only for having access to the funds, not for having invested those funds into a UK business. The rule that you have cited applies where money has been accepted as having been already invested into a business prior to application for entry in the tier 1 visa route. Therefore, for the above reason, this is not applicable to your case.

You also claimed that your unaudited accounts clearly shows the investment in your business. Upon review, we find that the audited company accounts that you have provided for XYZ company do not show investment into the business directly by your in your name or by someone on your behalf but in your name, as required by paragraph 46-SD(B)(1) of Appendix A of the immigration rules. You have failed to provide evidence that you invested at least £50,000 into a UK business. Therefore the decision not to award points for this attribute is correct.

Regarding points not awarded for being registered as a company director within six months of your last grant of leave and being engaged in business activity at the time of your application. You claim that a copy of the current appointment report from Companies House was attached to your latest company accounts and that the caseworker had overlooked this evidence when accessing your application.

However, upon review of the documentation that you have provided, we find that no current appointment report has been supplied. The evidence of the information referred to above are specified documents under Appendix A of the immigration rules. Therefore you were required to submit the original documents in support of your application. You are reminded that the onus is on your to provide all the specified evidence in support of your application.

Regarding points not awarded for the job creation requirement, you have provided a detailed explanation as to why there was a number of months missing from the RTI information you provided. Moreover, you claim that the original caseworker was incorrect not to apply the Secretary of State's evidential flexibility (EF) policy to verify the missing specified information from other documents you had provided.


We acknowledge there may have been mitigating circumstances for the missing RTI information, however, as there are other reasons for refusal of your application, the original caseworker was correct in applying the EF policy to verify the missing RTE information, as its inclusion would not have changed the outcome of the decision, PARAGRAPH 245AA(d)applies.

Therefore, for the above reasons and decision to refuse your appliction for leave to remain as a TIER 1 Entrepreneur Migrant is maintained.


My questions are as follows:

1. By the above details do you think a fresh application is likely to cross the line?

2. Currently the accounts show an investment of around £71,000, however, I have spoken to my accountant with regards to changing and his exact wordings our ' You can submit a voluntary confirmation statement to Companies House and that would reaffirm the information they already have, however, you cannot change the accounts as these are prescribed in law by Companies House and Financial Reporting Standards. Your accounts were prepared under FRS 105, which is the applicable accounting standard. Let me know and I will write a letter on your behalf'.

3. Do I need to immediately remove myself from the payroll?

4. I am only stuck with the accounts/investment issues since the initial application was through a venture capital firm which is now been dusted and finished and I have absolutely no contact with VC so, therefore, I can not provide HO as a single document.

5. I already have all the relevant paperwork which I submitted with my extension application which has now been returned to me, so I do not have to do a lot of hard work. So, if I apply with the missing documents, such as CAR, RTI and (Changed investment) will this go through?

6. I highly doubt that I will have a slight chance to win in JR so therefore that is out of the question.

7. Do I need to resubmit the IHS fee again? HO has confirmed this will be refunded within 6 weeks.

8. In last what happened to my 10 year period if I now apply with a fresh application?


Best Regards

[marcnath]

Not sure why that link is not working.

Try typing this directly to your browser - http://wck2.companieshouse.gov.uk

[marcnath]

Within your administrative review application, you have made the extensive argument that you were not required to submit further evidence of investment into a UK business, as you had been awarded the required points for this attribute in your initial application of 29 August 2013. In support of this claim, you cite paragraph 46-SD(a)(iv) of appendix A and paragraph 139 to 142 of the Secretary of State's published guidance.

If this was the argument you used, it was wrong. You still needed to provide evidence of investment as was explained to you. You did not need to provide the "Additional evidence for Venture Capital investment" which is what this clause refers to.

1. By the above details do you think a fresh application is likely to cross the line?

Yes, a fresh application should succeed if you correct the documents.

2. Currently the accounts show an investment of around £71,000, however, I have spoken to my accountant with regards to changing and his exact wordings our ' You can submit a voluntary confirmation statement to Companies House and that would reaffirm the information they already have, however, you cannot change the accounts as these are prescribed in law by Companies House and Financial Reporting Standards. Your accounts were prepared under FRS 105, which is the applicable accounting standard. Let me know and I will write a letter on your behalf'.

A letter is insufficient. You don't have to change the accounts in any material manner. You only need the notes to be amended. If the accountant is unwilling to do that, you can have him prepare a new set of accounts for the latest period (or part period), which you can submit with the new application.

3. Do I need to immediately remove myself from the payroll?

Yes

4. I am only stuck with the accounts/investment issues since the initial application was through a venture capital firm which is now been dusted and finished and I have absolutely no contact with VC so, therefore, I can not provide HO as a single document.

Interesting that a VC puts money in and just disappears. Are they set up do charity ? I would love to have the VC detail (seriously) as I am involved in another start-up that could use some money.
Anyway, you don't need any documents from the VC.
Was the investment made by Share Capital ? All you need is the words "on behalf of BK14" in the notes to the Accounts.

5. I already have all the relevant paperwork which I submitted with my extension application which has now been returned to me, so I do not have to do a lot of hard work. So, if I apply with the missing documents, such as CAR, RTI and (Changed investment) will this go through?

I don't see why you can't get the points if you resubmit. But without access to the documents themselves, it is impossible to say.

7. Do I need to resubmit the IHS fee again? HO has confirmed this will be refunded within 6 weeks.

Yes, and you also need the maintenance funds.

8. In last what happened to my 10 year period if I now apply with a fresh application?

If your fresh application is approved, then the overstay period will be ignored. If it is rejected again, then your 10 year is also not valid as you are an overstayer now.

[BK14]

Hello Marcnath,

Thank you for your valued feedback, my response below:


If this was the argument you used, it was wrong. You still needed to provide evidence of investment as was explained to you. You did not need to provide the "Additional evidence for Venture Capital investment" which is what this clause refers to.

OK SO MY ARGUMENT WAS TOTALLY WRONG? ALL I NEED IS TO SHOW MY NAME WITHIN ACCOUNTS AS INVESTMENT ET, BUT WOULD THEY NOT REQUIRE ME TO HOW BANK STATEMENTS SHOWING THE FUNDS INPUT. IF THEY WOULD LIKE TO SEE THEN THE FUNDS DID NOT DIRECTLY CAME FROM MY ACCOUNT INFACT A 3rd PARTY BASED IN EUROPE.

1. By the above details do you think a fresh application is likely to cross the line?
Yes, a fresh application should succeed if you correct the documents.

OK SO THAT IS GOOD.

2. Currently the accounts show an investment of around £71,000, however, I have spoken to my accountant with regards to changing and his exact wordings our ' You can submit a voluntary confirmation statement to Companies House and that would reaffirm the information they already have, however, you cannot change the accounts as these are prescribed in law by Companies House and Financial Reporting Standards. Your accounts were prepared under FRS 105, which is the applicable accounting standard. Let me know and I will write a letter on your behalf'.
A letter is insufficient. You don't have to change the accounts in any material manner. You only need the notes to be amended. If the accountant is unwilling to do that, you can have him prepare a new set of accounts for the latest period (or part period), which you can submit with the new application.
OK, SO A LETTER FROM THE ACCOUNT IS SUFFICIENT ENOUGH? BUT WHAT SHOULD BE THE WORDS EXACTLY? IS THIS LIKE DIRECTOR LOAN?

3. Do I need to immediately remove myself from the payroll?
Yes, OK I WILL REQUEST HIM TO REMOVE ME BUT WHAT ABOUT BEING MYSELF A DIRECTOR STILL?

4. I am only stuck with the accounts/investment issues since the initial application was through a venture capital firm which is now been dusted and finished and I have absolutely no contact with VC so, therefore, I can not provide HO as a single document.
Interesting that a VC puts money in and just disappears. Are they set up do charity ? I would love to have the VC detail (seriously) as I am involved in another start-up that could use some money.
Anyway, you don't need any documents from the VC.
Was the investment made by Share Capital ? All you need is the words "on behalf of BK14" in the notes to the Accounts.

THE ACTUAL ISSUE IS, THE VC FIRM WAS PROVIDED BY THE SOLICITOR I USED AND SINCE I KNOW THE GUY WELL ENOUGH (THE SOLICITOR) HE REQUESTED ME TO TRANSFER MY OWN FUNDS FROM TO THE VC AND VC FIRM WILL THEN TRANSFER BACK TO YOUR ACCOUNT WHICH THEY DID BY CHARGING A CERTAIN FEE.

5. I already have all the relevant paperwork which I submitted with my extension application which has now been returned to me, so I do not have to do a lot of hard work. So, if I apply with the missing documents, such as CAR, RTI and (Changed investment) will this go through?
I don't see why you can't get the points if you resubmit. But without access to the documents themselves, it is impossible to say.
AGREED

7. Do I need to resubmit the IHS fee again? HO has confirmed this will be refunded within 6 weeks.
Yes, and you also need the maintenance funds.
I DO HAVE MAINTENANCE FUNDS, SO THE PREVIOUS REFUND WILL COME THROUGH HOWEVER I NEED TO REPAY AGAIN?

8. In last what happened to my 10 year period if I now apply with a fresh application?
If your fresh application is approved, then the overstay period will be ignored. If it is rejected again, then your 10 year is also not valid as you are an overstayer now.
OK SO THAT IS A BIT OF A RELIEF.

LAST QUESTION:

Do I also need to write back to AR team to let them know I have applied for a fresh application? or I just simply apply. Also, will they pickup the old rejection material with my fresh application or they will simply ignore everything and work on my new application?


Best Regards

[marcnath]

If this was the argument you used, it was wrong. You still needed to provide evidence of investment as was explained to you. You did not need to provide the "Additional evidence for Venture Capital investment" which is what this clause refers to.

OK SO MY ARGUMENT WAS TOTALLY WRONG? ALL I NEED IS TO SHOW MY NAME WITHIN ACCOUNTS AS INVESTMENT ET, BUT WOULD THEY NOT REQUIRE ME TO HOW BANK STATEMENTS SHOWING THE FUNDS INPUT. IF THEY WOULD LIKE TO SEE THEN THE FUNDS DID NOT DIRECTLY CAME FROM MY ACCOUNT INFACT A 3rd PARTY BASED IN EUROPE.

Whether you need bank statements depends on whether it was Share Capital or Director Loan.

2. Currently the accounts show an investment of around £71,000, however, I have spoken to my accountant with regards to changing and his exact wordings our ' You can submit a voluntary confirmation statement to Companies House and that would reaffirm the information they already have, however, you cannot change the accounts as these are prescribed in law by Companies House and Financial Reporting Standards. Your accounts were prepared under FRS 105, which is the applicable accounting standard. Let me know and I will write a letter on your behalf'.
A letter is insufficient. You don't have to change the accounts in any material manner. You only need the notes to be amended. If the accountant is unwilling to do that, you can have him prepare a new set of accounts for the latest period (or part period), which you can submit with the new application.
OK, SO A LETTER FROM THE ACCOUNT IS SUFFICIENT ENOUGH? BUT WHAT SHOULD BE THE WORDS EXACTLY? IS THIS LIKE DIRECTOR LOAN?

I said a letter from accountant is INSUFFICIENT. You need a new set of accounts.

3. Do I need to immediately remove myself from the payroll?
Yes, OK I WILL REQUEST HIM TO REMOVE ME BUT WHAT ABOUT BEING MYSELF A DIRECTOR STILL?

You can remain a Director.

4. I am only stuck with the accounts/investment issues since the initial application was through a venture capital firm which is now been dusted and finished and I have absolutely no contact with VC so, therefore, I can not provide HO as a single document.
Interesting that a VC puts money in and just disappears. Are they set up do charity ? I would love to have the VC detail (seriously) as I am involved in another start-up that could use some money.
Anyway, you don't need any documents from the VC.
Was the investment made by Share Capital ? All you need is the words "on behalf of BK14" in the notes to the Accounts.

THE ACTUAL ISSUE IS, THE VC FIRM WAS PROVIDED BY THE SOLICITOR I USED AND SINCE I KNOW THE GUY WELL ENOUGH (THE SOLICITOR) HE REQUESTED ME TO TRANSFER MY OWN FUNDS FROM TO THE VC AND VC FIRM WILL THEN TRANSFER BACK TO YOUR ACCOUNT WHICH THEY DID BY CHARGING A CERTAIN FEE.

Ok. I did not even realise this was going on (I am naive). So this clearly explains some other VC cases in this forum and why HO has tightened the requirements.

In my personal opinion, what you have done - giving your money to VC to then invest back - is fraudulent. You need to hope that HO does not dig into it and discover this.

I am also confused by what your accounts actually show - does this VC company have any shares in your business ?

7. Do I need to resubmit the IHS fee again? HO has confirmed this will be refunded within 6 weeks.
Yes, and you also need the maintenance funds.
I DO HAVE MAINTENANCE FUNDS, SO THE PREVIOUS REFUND WILL COME THROUGH HOWEVER I NEED TO REPAY AGAIN?

Yes

Do I also need to write back to AR team to let them know I have applied for a fresh application? or I just simply apply. Also, will they pickup the old rejection material with my fresh application or they will simply ignore everything and work on my new application?[/b]

You don't need to write to the AR team. The CW should be starting with the fresh application as though it is a new one. However, they will have access to all the history so I would not be surprised if they look at it. But the actual award of points will be based on the new one only.

[BK14]

Hi Marcnath,

Thank you for your valued feedback, please see my response in RED:

Whether you need bank statements depends on whether it was Share Capital or Director Loan.
Well, nowhere in my set of accounts we mentioned as director loan, it was share capital. (Sorry I am not good at accounts but the set of accounts did says that I own 75% or more capital shares)



I said a letter from an accountant is INSUFFICIENT. You need a new set of accounts.
The accountant has already said he can not change accounts so what do I do now?




Ok. I did not even realise this was going on (I am naive). So this clearly explains some other VC cases in this forum and why HO has tightened the requirements.

In my personal opinion, what you have done - giving your money to VC to then invest back - is fraudulent. You need to hope that HO does not dig into it and discover this.

I am also confused by what your accounts actually show - does this VC company have any shares in your business?
There are NO shares of Venture Capital in my Business.


Question: I am about to fill out a new application form and when it says are you applying within your current leave what do I need to do there? since I have 14 days but not sure what do I need to fill out in the application?

[marcnath]

Ok. This is now very confusing. And you don't seem to have got the basics right. I am not sure I am going to be able to help much more - it possibly is best that you get some professional help. Maybe the solicitor that helped you with the initial Visa.

Thank you for your valued feedback, please see my response in RED:

Whether you need bank statements depends on whether it was Share Capital or Director Loan.
Well, nowhere in my set of accounts we mentioned as director loan, it was share capital. (Sorry I am not good at accounts but the set of accounts did says that I own 75% or more capital shares)

There is a very specific requirement to show the share capital investment in the accounts. That is very clear in the Guidance. You have to show the value of the shares issued to you on the date of the issue and your name needs to be there.

I said a letter from an accountant is INSUFFICIENT. You need a new set of accounts.
The accountant has already said he can not change accounts so what do I do now?

As I said before, if the accountant is not willing to update the NOTES section of the previous accounts, you can ask him to prepare a new set of accounts. Until when was the last accounts prepared ? You can ask you accountant to prepare a set of accounts starting from that until end of December, for example. Then it is not changing accounts, but generating a new one.

I am also confused by what your accounts actually show - does this VC company have any shares in your business?
There are NO shares of Venture Capital in my Business.

So, on paper, you showed funds available from a VC Then the VC invested in your company but the VC was not given any shares for that investment ? How is that money shown in your accounts ?
I think you are lucky that most CWs may not have a knowledge of basic accounting or even if they have, they would not use it for evaluation. This, to me, is a very clear indication of something fishy going on. But, since CWs generally would follow the process mechanically, you may get away with it.

Question: I am about to fill out a new application form and when it says are you applying within your current leave what do I need to do there? since I have 14 days but not sure what do I need to fill out in the application?

Clearly, you are not applying within the your current leave. So you answer no and give the explanation that they ask for.

[BK14]

Hi Marcnath,

Thank you for your feedback, please see my response:


With regards to the shares/accounts is there a private message service where I could forward and you can kindly look?

Set of accounts from the date of finish to the end of December, that makes sense provided I fully understand what exactly I need to specifically mention.

With regards to VC funding, there is nothing fishy, though as I said I am not good at accounts so therefore I have a zero knowledge but the money came through to my Business account and over the years it was invested, I understand you wanted to see the source shown in the accounts but all I see our figures.

[marcnath]

As a new member, you don't have PM rights.

As to what is needed in the accounts, it is on Pg 47 of the guidance

(4) If you have invested by way of share capital, the business accounts must show the shareholders, the amount and value of the shares (on the date of purchase) in your name as it appears on your application.

Your accountant should be able to add it if you give this requirement.

[BK14]

Hi Marcnath,

Thank you, the share is 100% and the accounts do show my name as I own 100% share and is set to £100.

[marcnath]

Hi Marcnath,

Thank you, the share is 100% and the accounts do show my name as I own 100% share and is set to £100.

So, where is the 70K you invested shown in the accounts if the Share Capital is only £100 ?

[BK14]

Hi Marcnath,

Will below help, I simply copy-pasted as I can not upload here.


INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
2017 2016
£ £
Turnover 157,057 103,549
Cost of raw materials and consumables (32,670) (24,405)
Staff cost (52,965) (30,590)
Depreciation and other amounts written off assets (3,100) (2,788)
Other charges (35,168) (36,985)
Tax (2,708) -
Profit 30,446 8,781


2017 2016
£ £
Fixed assets 41,349 15,354
Current assets 60,194 39,068
Creditors: amounts falling due within one year (85,470) (59,745)
Net current liabilities (25,276) (20,677)
Total assets less current liabilities 16,073 (5,323)
Creditors: amounts falling due after more than one year (15,984) (3,034)
Net assets/(net liabilities) 89 (8,357)
Capital and reserves 89 (8,357)
For the year ending 30 June 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006
relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the
Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records
and the preparation of accounts.
These accounts have been prepared in accordance with the micro-entity provisions of the Companies Act 2006 and FRS 105, The
Financial Reporting Standard applicable to the Micro-entities Regime.
Approved by the board on 8 October 2017

My Name
Director


FOR THE YEAR ENDED 30 JUNE 2017
This schedule does not form part of the statutory accounts.
2017 2016
£ £
Turnover
Sales 157,057 103,549
Cost of raw materials and consumables
Purchases 32,670 24,405
Staff costs
Wages and salaries 40,423 15,013
Directors' salaries 11,125 10,700
Temporary staff and recruitment - 2,764
Travel and subsistence 2 38
Motor expenses 1,415 2,052
Entertaining - 23
52,965 30,590
Depreciation and other amounts written off assets
Depreciation 1,700 1,388
Amortisation of goodwill 1,400 1,400
3,100 2,788
Other
Rent 15,100 12,000
Rates 4,597 5,556
Light and heat 1,141 1,595
Use of home 4,800 4,800
Telephone and fax 825 1,404
Stationery and printing 635 1,095
Bank charges 671 278
Insurance 1,144 573
Equipment expensed 63 158
Equipment hire 618 279
Software 169 300
Repairs and maintenance 266 1,163
Sundry expenses 92 658
Accountancy fees 1,463 1,324
Management fees 2,000 1,738
Advertising and PR 976 572
Other legal and professional - 100
Subcontractor costs 272 3,056
Bank loans and overdrafts 336 336
35,168 36,985

[BK14]

Hi Marcnath,

I am filling out the application for my dependant and currently stuck on Page 23, I do not understand what exactly applies to me here:

Section K - About your Immigration History
In this section you will be asked to provide information about your current and previous immigration
status in the UK, including previous applications that you have made.
K1; What is your current immigration status?
• I have leave to enter / remain for a limited period - Go to K4
• I am an EU national / family member of an EU national - Go to K4
• I am exempt from immigration control - Go to K4
• I have leave which has been extended by section 3C of the Immigration Rules – Go to K4
• I had leave to enter / remain for a limited period, which has now expired - Go to K2
• I am applying following the refusal of a previous application for leave which was made intime
or for which the Secretary of State considered there was a good reason why it could not
be made in-time – Go to K2
• I am applying after the expiry date of the time limit for making an in-time application for
administrative review or appeal in relation to the refusal of a previous application for leave –
Go to K2
• I am applying following an administrative review or appeal being concluded, withdrawn
abandoned or lapsing - Go to K2
• None of the above - go to K4
K2; Are you applying within 14 days of;
• Your leave to enter or remain expiring?
Yes – Go to K2A
No – If you wish to apply to continue your stay in the UK, you should leave the UK and
reapply for a visa from overseas
K2A; Is there a good reason beyond your/your representative’s control why the application
could not be made in time?
Yes – Go to K2B
No – If you wish to apply to continue your stay in the UK, you should leave the UK and
reapply for a visa from overseas.
K2B; Are you applying within 14 days of;
• the refusal of a previous application for leave which was made in-time or for which the
Secretary of State considered there was a good reason why it could not be made in-time, or
• the expiry of any leave extended by section 3 of the Immigration Act 1971, or
• the expiry date of the time limit for making an in-time application for administrative review or
appeal in relation to the refusal of a previous application for leave, or
• an administrative review or appeal being concluded, withdrawn abandoned or lapsing?
Yes – Go to K3
No – If you wish to apply to continue your stay in the UK, you should leave the UK and
reapply for a visa from overseas.

[marcnath]

Hi Marcnath,

I am filling out the application for my dependant and currently stuck on Page 23, I do not understand what exactly applies to me here:

Section K - About your Immigration History
In this section you will be asked to provide information about your current and previous immigration
status in the UK, including previous applications that you have made.
K1; What is your current immigration status?
• I have leave to enter / remain for a limited period - Go to K4
• I am an EU national / family member of an EU national - Go to K4
• I am exempt from immigration control - Go to K4
• I have leave which has been extended by section 3C of the Immigration Rules – Go to K4
• I had leave to enter / remain for a limited period, which has now expired - Go to K2
• I am applying following the refusal of a previous application for leave which was made intime
or for which the Secretary of State considered there was a good reason why it could not
be made in-time – Go to K2
• I am applying after the expiry date of the time limit for making an in-time application for
administrative review or appeal in relation to the refusal of a previous application for leave –
Go to K2
• I am applying following an administrative review or appeal being concluded, withdrawn
abandoned or lapsing - Go to K2
• None of the above - go to K4
K2; Are you applying within 14 days of;
• Your leave to enter or remain expiring?
Yes – Go to K2A
No – If you wish to apply to continue your stay in the UK, you should leave the UK and
reapply for a visa from overseas
K2A; Is there a good reason beyond your/your representative’s control why the application
could not be made in time?
Yes – Go to K2B
No – If you wish to apply to continue your stay in the UK, you should leave the UK and
reapply for a visa from overseas.
K2B; Are you applying within 14 days of;
• the refusal of a previous application for leave which was made in-time or for which the
Secretary of State considered there was a good reason why it could not be made in-time, or
• the expiry of any leave extended by section 3 of the Immigration Act 1971, or
• the expiry date of the time limit for making an in-time application for administrative review or
appeal in relation to the refusal of a previous application for leave, or
• an administrative review or appeal being concluded, withdrawn abandoned or lapsing?
Yes – Go to K3
No – If you wish to apply to continue your stay in the UK, you should leave the UK and
reapply for a visa from overseas.

[marcnath]

Thanks for posting the accounts.
But it still did not answer my question - where is the 70K shown ?
You should be knowing your own accounts - otherwise you are going to be in trouble if you are interviewed.
The closest I can see to the 70K is Creditors within one year, which then indicates it is a Director's loan. That is the opposite of what you said. And anyway that is a guess without more information.

[BK14]

Hi Marcnath,

Could you please let me know how far back the accounts needs to be prepared? I have cross checked with 2-3 different accountants and they have all confirmed the set of accounts were fine but they were wrongly presented to HO with restricted information, therefore, your application was bound to be refused.

So, I am now preparing the accounts differently with much more information for i.e. directors loan, investment amount etc, however, I need to know do I need to go back to the date I started the Business or 2016 - 2017 will be fine plus the management accounts up until Dec 2017?


Best Regards

[marcnath]

All you need is one set of accounts- does not matter which one. So either 2016-2017 or the management accounts to Dec is sufficient

[BK14]

Hi Marcnath,

Thank you, so basically last 1 year is fine with added management accounts to date?. Also, now I am showing the investment by Director Loan and I can show the statement of the funds transferred but those funds came directly to my Business Account rather personal and with Director Loan I believe it should come from Personal to Business?

So, what do I need to do here? Also, I have not instructed my Accountant to remove me from my Payroll so I will advise him now to remove me immediately.

[BK14]

Hi Marcnath,

I would really appreciate if you can shed some light whether I can apply with Director loan or I need to put some different notes within the accounts? Since the money invested was from directly from a Business account.

The funds deposited were in Business account rather personal.

[marcnath]

The requirement for investment by DL is:

If you have made the investment in the form of a director’s loan, it must be shown in both the relevant set of financial accounts provided and through readily identifiable transactions in the applicant’s business bank statement(s). The statement(s) must clearly show the transfer of this money from you to your business

The underlined parts are key. It does not have to come from a personal account, but your name need to be against the transaction in your bank statement.

But you may be lucky with the latest changes. If you apply after 11th Jan, the new rule is effective and that says:
where the investment was made after 19 November 2015,the investment must be shown through readily identifiable transactions in ......
So, bank statement are not needed for investments made before 19/11/2015.

Read the full guidance - the requirement is very clear in the guidance as to what else is needed.

There is another aspect about your case that I am not sure about. You showed funds available from the VC but now you will be showing all the investment as coming from you (because your accounts don't show the VC at all). I can't see anything in the rules that prevents that but I could be wrong. But you don't have any options - if I am wrong, you don't have any alternatives anyway.

[BK14]

Hi Marcnath,

Thank you for your valued feedbacks, yes initial application was based on VC funds available however afterwards I had to inject my own funds which came from abroad directly into my Business account and thereafter I made payments for i.e. Franchise fee etc.

The only confusion I had is, I switched from Student to TIER 1 and I believe migrants on PSW were allowed to have their own funding etc but not the students at that time. I spoke to another chap who is an accountant and have helped his clients in such cases however he said you can not show a director loan because that money was from Business rather personal so therefore Business account do belongs to you but it would not have your name.

I am only stuck with this accounts issue, rest I have gathered all the relevant documents just this accounts are the issue now.