Employee Breakdown Question

[jonser]

Hi All,
My Entrepreneur Visa will expire on Dec 2, 2018 and I am confused as to whether I would meet the employee requirement. I intend to Apply at the end of November, 2018. It is a bit complicated so please bear with me.

See employee breakdown below:

Employee A (13 hours per week) Started 02/07/16 – Ended 01/01/17
Employee B (17 hours per week) Started 02/07/16 – Ended 30/09/16

I intend to claim 3 months for this 1 role.

Employee C (16 hours per week) Started 20/02/17
Employee D (14 hours per week) Started 27/03/17 – Ended 30/06/17
I intend to claim 3 months for this 1 role

Employee E (14 hours per week) Started 10/07/17 – Ended 20/10/17
Employee C remained but contract increased to 24 hours per week from 01/06/17
I intend to claim 3 months for this 1 role.

This means I have 9 months so far for 1 job.

I then increased Employee C’s contract to 32 hours per week on 25/09/17 and she has been in the position till date and hired a new person on a 30 hour/week contract on 24/02/18 so it becomes

Employee C (32 hours a week) Started 25/09/17 – 6 months so far
Employee F (30 hours a week) Started 24/02/18 – 2 months so far
By End of May, Employees A, B, C, D, E and F combined would make one job and Employee C (32 hours per week contract) would clock 1 year by End of September, making it the second job.

Could you please let me know if I am on the right track? Can I claim for Employee C’s role in this way?
Thank you for your anticipated response.

[marcnath]

This is complex.
I assume you applied post 6 April 2014, but can you confirm that - it makes a big difference.
Also, what are the jobs/job titles of these employees ?

[jonser]

Thank you for your reply. I applied post 6 April, 2014. The job title is Retail Associate but I believe I can always alter it if necessary.

[marcnath]

I don't think this is going to be good news for you.
Post April 2014, you need two jobs of 12 months each.
Trying to use the same employee (C) in two different jobs is theoretically possible but I suspect HO will look very closely into it. You probably would have to show what changed in the job and how this employee qualified for different jobs. If you are using Retail Assistant for both jobs, that will just not be possible.
You can also combine two part time jobs to make up 1 FT job, provide each of those lasted 12 months. So, you best approach would be to do that.
Job 1 - Employee C (Sept 17 to Sept 18 FT)
Job 2 - Part-time
Employee B (17 hours per week) Started 02/07/16 – Ended 30/09/16 - 3 months
Employee D (14 hours per week) Started 27/03/17 – Ended 30/06/17 - 3 months
Employee E (14 hours per week) Started 10/07/17 – Ended 20/10/17 - 3 months
New part-time employee to be hired (>= 17 hrs) - 3 months

Job 3 - Part-time to be combined with Job 2
Employee A (13 hours per week) Started 02/07/16 – Ended 01/01/17 - 6 months
Employee F (30 hours a week) Started 24/02/18 – 2 months so far - >6 months (show a slightly higher hourly rate to reduce it below 30 hrs/week and make it part-time, as long as it more than 16 hrs/wk)

That is possibly your best bet, but there may be other combinations.

[jonser]

Hi Marcnath,
Thank you so much for your reply. I read and understood it and will put it in motion. However, I had another thought which I was wondering if it could work.

Job 1 - Employee C: Sept 2017 - September 18 1 full time job

Job 2 -
Employee A (13 hours per week) Started 02/07/16 – Ended 01/01/17
Employee B (17 hours per week) Started 02/07/16 – Ended 30/09/16

3 months

And then continue with Employee F (30 hours a week) Started 24/02/18 till End of Nov 2018 (9 months I reckon)

What do you think?

[marcnath]

Hi Marcnath,
Thank you so much for your reply. I read and understood it and will put it in motion. However, I had another thought which I was wondering if it could work.

Job 1 - Employee C: Sept 2017 - September 18 1 full time job

Job 2 -
Employee A (13 hours per week) Started 02/07/16 – Ended 01/01/17
Employee B (17 hours per week) Started 02/07/16 – Ended 30/09/16

3 months

And then continue with Employee F (30 hours a week) Started 24/02/18 till End of Nov 2018 (9 months I reckon)

What do you think?

Yes, in my opinion, that should also work.

However, there was a recent rejection when someone tried to combine 1 FT and 2 PT in a single job. (uk-tier-1-entrepreneur-visas/tier-1-ent ... 54181.html)
We will have to see what the outcome of the AR is to understand if it will be overturned.
But you can see the arguments there.

[marcnath]

Hi Marcnath,
Thank you so much for your reply. I read and understood it and will put it in motion. However, I had another thought which I was wondering if it could work.

Job 1 - Employee C: Sept 2017 - September 18 1 full time job

Job 2 -
Employee A (13 hours per week) Started 02/07/16 – Ended 01/01/17
Employee B (17 hours per week) Started 02/07/16 – Ended 30/09/16

3 months

And then continue with Employee F (30 hours a week) Started 24/02/18 till End of Nov 2018 (9 months I reckon)

What do you think?

Yes, in my opinion, that should also work.

If you are doing this, I would suggest you add an additional table listing weeks in columns, the three employees in rows and show that you have a total of 52 weeks with each column total >= 30 hours.

Note that there was a recent rejection when someone tried to combine 1 FT and 2 PT in a single job. (uk-tier-1-entrepreneur-visas/tier-1-ent ... 54181.html)
We will have to see what the outcome of the AR is to understand if it will be overturned.
But you can see the arguments there.

[jonser]

Thank you once again. One last question please,
If Employee A was on dependant Visa as at when he was in my employ (02/07/16 – Ended 01/01/17) but has now got his ILR. Can I still use him or do you reckon he would be rejected if I add his ILR to my application in Dec 2018.

[marcnath]

Thank you once again. One last question please,
If Employee A was on dependant Visa as at when he was in my employ (02/07/16 – Ended 01/01/17) but has now got his ILR. Can I still use him or do you reckon he would be rejected if I add his ILR to my application in Dec 2018.

You can only claim job creation for the period after ILR

[jonser]

Thank you once again. One last question please,
If Employee A was on dependant Visa as at when he was in my employ (02/07/16 – Ended 01/01/17) but has now got his ILR. Can I still use him or do you reckon he would be rejected if I add his ILR to my application in Dec 2018.

You can only claim job creation for the period after ILR

Thanks a lot for all your help. I really appreciate it.

[marcnath]

Hi All,
I am applying for my extension at the end of the year and I am starting to make sure everything is in place. For my initial application, I transferred £200,000 (£180,000 into my business savings account and £20,000 into my business current account) as Director Loan and provided proof of this. During the initial 2 year period of my entrepreneur, I raised the share capital of the business to £100,000 (It was initially £20,000 when the company was formed) and I have continued to purchase inventory, sell and reinvest the proceeds into buying more inventory. Is there any other thing I need to do prior to my extension to cover the £200,000 investment part? I have worked very hard over the past two years and Idon't wan't to get caught out because of a minor oversight.

Thanks in advance for your answers

To be clear, you did provide the annual accounts, director loan agreement and other documents at the initial application ? And you did claim points for investment already made ? I assume you did not provide any third party funding letter at that time.
This is critical as that means you don't need to provide any evidence for investment again during the extension and can claim those points on the basis of investment approved earlier. So, anything you did after that would not matter.

[jonser]

Hi All,
I am applying for my extension at the end of the year and I am starting to make sure everything is in place. For my initial application, I transferred £200,000 (£180,000 into my business savings account and £20,000 into my business current account) as Director Loan and provided proof of this. During the initial 2 year period of my entrepreneur, I raised the share capital of the business to £100,000 (It was initially £20,000 when the company was formed) and I have continued to purchase inventory, sell and reinvest the proceeds into buying more inventory. Is there any other thing I need to do prior to my extension to cover the £200,000 investment part? I have worked very hard over the past two years and Idon't wan't to get caught out because of a minor oversight.

Thanks in advance for your answers

To be clear, you did provide the annual accounts, director loan agreement and other documents at the initial application ? And you did claim points for investment already made ? I assume you did not provide any third party funding letter at that time.
This is critical as that means you don't need to provide any evidence for investment again during the extension and can claim those points on the basis of investment approved earlier. So, anything you did after that would not matter.

Hi Marcnath,
Yes, I provided annual accounts, Director Loan agreement, 3rd Party Funding Letter from company to myself, Legal representative letter confirming 3rd Party Funding from my company to myself showing that the money was available for use to run the business (this was a bit of an overkill but I included it because I had already transferred the money into my business accounts) and other documents in my initial application.

[jonser]

Hi All,
I am applying for my extension at the end of the year and I am starting to make sure everything is in place. For my initial application, I transferred £200,000 (£180,000 into my business savings account and £20,000 into my business current account) as Director Loan and provided proof of this. During the initial 2 year period of my entrepreneur, I raised the share capital of the business to £100,000 (It was initially £20,000 when the company was formed) and I have continued to purchase inventory, sell and reinvest the proceeds into buying more inventory. Is there any other thing I need to do prior to my extension to cover the £200,000 investment part? I have worked very hard over the past two years and Idon't wan't to get caught out because of a minor oversight.

Thanks in advance for your answers

To be clear, you did provide the annual accounts, director loan agreement and other documents at the initial application ? And you did claim points for investment already made ? I assume you did not provide any third party funding letter at that time.
This is critical as that means you don't need to provide any evidence for investment again during the extension and can claim those points on the basis of investment approved earlier. So, anything you did after that would not matter.

Hi Marcnath,
Yes, I provided annual accounts, Director Loan agreement, 3rd Party Funding Letter from company to myself, Legal representative letter confirming 3rd Party Funding from my company to myself showing that the money was available for use to run the business (this was a bit of an overkill but I included it because I had already transferred the money into my business accounts) and other documents in my initial application.

I think back then they were used to claim access to funds.

[marcnath]

Hi All,
I am applying for my extension at the end of the year and I am starting to make sure everything is in place. For my initial application, I transferred £200,000 (£180,000 into my business savings account and £20,000 into my business current account) as Director Loan and provided proof of this. During the initial 2 year period of my entrepreneur, I raised the share capital of the business to £100,000 (It was initially £20,000 when the company was formed) and I have continued to purchase inventory, sell and reinvest the proceeds into buying more inventory. Is there any other thing I need to do prior to my extension to cover the £200,000 investment part? I have worked very hard over the past two years and Idon't wan't to get caught out because of a minor oversight.

Thanks in advance for your answers

To be clear, you did provide the annual accounts, director loan agreement and other documents at the initial application ? And you did claim points for investment already made ? I assume you did not provide any third party funding letter at that time.
This is critical as that means you don't need to provide any evidence for investment again during the extension and can claim those points on the basis of investment approved earlier. So, anything you did after that would not matter.

Hi Marcnath,
Yes, I provided annual accounts, Director Loan agreement, 3rd Party Funding Letter from company to myself, Legal representative letter confirming 3rd Party Funding from my company to myself showing that the money was available for use to run the business (this was a bit of an overkill but I included it because I had already transferred the money into my business accounts) and other documents in my initial application.

ok. So you only showed access to funds rather than investment and need to provide all investment documents now.

They seem to have tighter scrutiny now, so the critical thing is to ensure your documentation is up to date. Primarily the Annual Accounts which should show the investment with your name mentioned.
Though not needed under the revised rules (since your investment probably were all done before Nov 2015), it would be good to have evidence of transfer of personal money to the company.
But otherwise, you should be ok.

[jonser]

Here is a post I made back then stating all the documents I submitted

uk-tier-1-entrepreneur-visas/tier-2-to- ... 99239.html

[marcnath]

OK. You could have continued the same thread

Anyway, it is clear you went for access to funds rather than taking the opportunity to show money invested.

[jonser]

OK. You could have continued the same thread

Anyway, it is clear you went for access to funds rather than taking the opportunity to show money invested.

Oh dear, I had no idea I could claim for investment by just having the money in the accounts and not actually spending it on the business. Could you please clarify what exactly needs to be reflected on my End of Year Company accounts to show proof of investment? Sorry for the too many questions. I just don't want to make any mistakes.

[marcnath]

OK. You could have continued the same thread

Anyway, it is clear you went for access to funds rather than taking the opportunity to show money invested.

Oh dear, I had no idea I could claim for investment by just having the money in the accounts and not actually spending it on the business. Could you please clarify what exactly needs to be reflected on my End of Year Company accounts to show proof of investment? Sorry for the too many questions. I just don't want to make any mistakes.

Your name needs to be there in the Annual Accounts against the Director's loan or Shareholding. It looks like you may have invested at least part of it as share capital. If so, it is important that the value of the shares when you invested is also shown. And the names and shareholdings of any other shareholders are also in the Annual Accounts that you submit.

[jonser]

Thank you so much for your guidance. I will ensure that this gets done.

[jonser]

Hi All,
I am about 3 weeks away from applying to extend my T1 Entrepreneur visa and I would like to know if it is okay to submit just this year's End of year accounts for my company or does it have to be for the last 3 years?

If it has to be for the last 3 years, could you please confirm if it is okay to submit the 3 separate accounts or just one by one accountant. I ask this because year 1 accounts was done by a different accountant while the accounts for years 2 and 3 were done by my current accountant. Is it okay if I combine the 3 separate accounts if I have to provide accounts for 3 years?

Thanks for your anticipated response.

[marcnath]

Hi All,
I am about 3 weeks away from applying to extend my T1 Entrepreneur visa and I would like to know if it is okay to submit just this year's End of year accounts for my company or does it have to be for the last 3 years?

If it has to be for the last 3 years, could you please confirm if it is okay to submit the 3 separate accounts or just one by one accountant. I ask this because year 1 accounts was done by a different accountant while the accounts for years 2 and 3 were done by my current accountant. Is it okay if I combine the 3 separate accounts if I have to provide accounts for 3 years?

Thanks for your anticipated response.

You only need one set of accounts - it can be any year as long as the full investment is shown in the one you submit.

[jonser]

Great thanks. I converted the directors loan from year 1 to share capital in year 3. Which account would I need to submit in this case?

[marcnath]

Great thanks. I converted the directors loan from year 1 to share capital in year 3. Which account would I need to submit in this case?

I repeat - it is ANY set of accounts that show your investment.

The supporting documents needed is different whether it is DL or shares. So, your evidence will change based on your choice.

Investment by shares has less documentation needed.

[jonser]

Thank you

[jonser]

Hi All,
I am going to be applying to extend my Entrepreneur Visa by next week. My accountant has prepared end of year accounts for the accounting period ending 30 Sept 2018 and in it he has indicated that I invested 200,000 by way of Share Capital and I am the only Shareholder which is great.

I am now looking at the detailed Profit and Loss Section of the account and he put in a line entry with Director's salary as £450. Do you think this will cause problems by the case worker looking into this and deducting the £450 from the share capital value?

Also,
The FPS shows that I have been receiving salary of about £900 per month. Is this a problem?

Thanks for your anticipated reply and all your help so far.