Director's Loan agreement and Fund transfer

[tier1entrepreneur-A]

Hi Team,

My company full time employees working 30hrs or more per week, so each month pay is different than the other (based on working hours), but working hours per week always 30hrs or more,

On each payslip (monthly) it include how many hours they work per month and hourly rate (i.e. 140 hours @ £8.50, or 120 hours @ £9.0)

My question is:
They almost work 6 hours on each working day or more Monday to Friday(total per week equal 30hrs or more), so for example Feb 2020 will be 120hrs (or more) per month, while in Jan 2020 they worked 138hrs (or more) per month (FEB 2020),

Does the above can make any confusion to CW, as the working hours vary between 120hrs and 142hrs? (i.e. not 130hrs as a fixed working hours per month)

Thanks in advance.

Any advice on this?,
I expect the answer, but I need a confirmation.

[marcnath]

Hi Team,

My company full time employees working 30hrs or more per week, so each month pay is different than the other (based on working hours), but working hours per week always 30hrs or more,

On each payslip (monthly) it include how many hours they work per month and hourly rate (i.e. 140 hours @ £8.50, or 120 hours @ £9.0)

My question is:
They almost work 6 hours on each working day or more Monday to Friday(total per week equal 30hrs or more), so for example Feb 2020 will be 120hrs (or more) per month, while in Jan 2020 they worked 138hrs (or more) per month (FEB 2020),

Does the above can make any confusion to CW, as the working hours vary between 120hrs and 142hrs? (i.e. not 130hrs as a fixed working hours per month)

Thanks in advance.

No, it does not

[tier1entrepreneur-A]

Hi Team,

My company full time employees working 30hrs or more per week, so each month pay is different than the other (based on working hours), but working hours per week always 30hrs or more,

On each payslip (monthly) it include how many hours they work per month and hourly rate (i.e. 140 hours @ £8.50, or 120 hours @ £9.0)

My question is:
They almost work 6 hours on each working day or more Monday to Friday(total per week equal 30hrs or more), so for example Feb 2020 will be 120hrs (or more) per month, while in Jan 2020 they worked 138hrs (or more) per month (FEB 2020),

Does the above can make any confusion to CW, as the working hours vary between 120hrs and 142hrs? (i.e. not 130hrs as a fixed working hours per month)

Thanks in advance.

No, it does not

Excellent, thanks marcnath.

[tier1entrepreneur-A]

Hi Team,

I just would like to check the following business activities will be acceptable by HO or not,

Q1:
My company will act like an agency to supply services to other recruitment agencies for freelancer jobs, and at the end of the month my company will send invoice for those agencies for the services completed by my subcontractors (almost from overseas and will not counted for job creation), and then my company will pay for those freelancers based on the contract between us (i.e keep 20% for my company and pay them 80%, based on their invoices),

Does the above will be acceptable by HO?

Note: the above will not be for job creation requirement, but it just the business activity.

Q2:
At some point I may use my current employee (PAYE) to do services for other clients (daily rate), and I will invoice those clients based on daily rate for those employee on those working days, and my employee will get paid monthly (PAYE), does this will be acceptable by HO?

I just would like to confirm that the two cases Q1 and Q2 will not break the rules at any point (tier 1 visa rules)

Thanks in advance.

[marcnath]

Hi Team,

I just would like to check the following business activities will be acceptable by HO or not,

Q1:
My company will act like an agency to supply services to other recruitment agencies for freelancer jobs, and at the end of the month my company will send invoice for those agencies for the services completed by my subcontractors (almost from overseas and will not counted for job creation), and then my company will pay for those freelancers based on the contract between us (i.e keep 20% for my company and pay them 80%, based on their invoices),

Does the above will be acceptable by HO?

Note: the above will not be for job creation requirement, but it just the business activity.

Q2:
At some point I may use my current employee (PAYE) to do services for other clients (daily rate), and I will invoice those clients based on daily rate for those employee on those working days, and my employee will get paid monthly (PAYE), does this will be acceptable by HO?

I just would like to confirm that the two cases Q1 and Q2 will not break the rules at any point (tier 1 visa rules)

Thanks in advance.

Can't see an issue with the first one from an immigration point of view,
The second one is more tricky as it looks like the Job itself is not in your company. I can't see how HO would know from the documents you submit it your application. But if they do find out then they can object

[tier1entrepreneur-A]

Hi Team,

I just would like to check the following business activities will be acceptable by HO or not,

Q1:
My company will act like an agency to supply services to other recruitment agencies for freelancer jobs, and at the end of the month my company will send invoice for those agencies for the services completed by my subcontractors (almost from overseas and will not counted for job creation), and then my company will pay for those freelancers based on the contract between us (i.e keep 20% for my company and pay them 80%, based on their invoices),

Does the above will be acceptable by HO?

Note: the above will not be for job creation requirement, but it just the business activity.

Q2:
At some point I may use my current employee (PAYE) to do services for other clients (daily rate), and I will invoice those clients based on daily rate for those employee on those working days, and my employee will get paid monthly (PAYE), does this will be acceptable by HO?

I just would like to confirm that the two cases Q1 and Q2 will not break the rules at any point (tier 1 visa rules)

Thanks in advance.

Can't see an issue with the first one from an immigration point of view,
The second one is more tricky as it looks like the Job itself is not in your company. I can't see how HO would know from the documents you submit it your application. But if they do find out then they can object

Thanks marcnath for your comment, much appreciated.

[tier1entrepreneur-AA]

Hi Team,

This year accounts will be submitted with my ILR application as the Directors loan have been invested during last year,

The wording below is part of my business accounts that the accountant will submit to HMRC, my question is, does any part of this introduction not filling/against the Home office requirements,

____________________________________________________ start
"Accountants' report to the director of XXXX Ltd

(XXXXX accountant company name and address)

You consider that the company is exempt from an audit for the year ended 31 January 2020. You
have acknowledged, on the balance sheet, your responsibilities for complying with the requirements
of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
These responsibilities include preparing accounts that give a true and fair view of the state of affairs
of the company at the end of the financial year and of its profit or loss for the financial year.
In accordance with your instructions, we have prepared the accounts which comprise the Profit and
Loss Account and the Balance Sheet from the accounting records of the company and on the basis
of information and explanations you have given to us.
We have not carried out an audit or any other review, and consequently we do not express any opinion on these accounts.

(XXXXX accountant company name, address and date)"

____________________________________________________ End

Does any wording on the above need to be adjusted (for Home office requirement)

Note: I prepare the bookkeeping internally, and the accountant company provides and ongoing advice, business end of year accounts & Director tax return.

The accountant have sent to be the business accounts documents for reviewing and sign, and then she will submit it to HMRC and companies House.

As this accounts will be submitted with my ILR/extension application end of this year (to prove the investment), I would like to make sure that the wording above is suitable.

Looking forward to hearing from you your valuable advice.

Thanks in advance.

[marcnath]

That seems to be the standard wording. There are no specifications for this.

[tier1entrepreneur-AA]

That seems to be the standard wording. There are no specifications for this.

Excellent, thanks marcnath for your confirmation, much appreciated.

[tier1entrepreneur-AA]

Hi team,

I have joined a company which already exist, and an employee has joined after my joining date, I'm preparing the required documents for extension/ILR application,

Note: he joined the business after my joining date.

I'm preparing the following for him to be counted as job created, and would like your advice if I need to add or remove any of these:

#1- Companies house document confirming my joining date.
#2- RTI/FPS/Period summary showing the employee joining date (which will be on the first month he have joined the company)
#3- 12 Payslips (including total working hours and hourly rate),
#4-RTI/FPS: for each month of the qualified 12 month period.
#5-Confirmation that no employees (in my case) have been on the company payroll before my joining date, so I need an official document to prove that (i.e. HMRC employer register document or something similar).
#6-Letter from the accountant:
As per the Home office guide, I need a letter from the accountant fulfill the requirements below:
----------------------
If they took over or joined an existing business, they must also provide a letter from
an accountant, to verify the job creation. The accountant’s letter must contain:
• the name and contact details of business
• the status of the applicant in the business
• the number of posts created in the business.
• dates of the employment created
• registration or permission of the accountant to operate in UK
• the date the accountant created the letter on behalf of the applicant
• If the business did not employ workers before the applicant took over or joined
it, confirmation of this
• a statement from the accountant to confirm the content of the letter to the Home
Office
The accountant must not be the applicant (if they are working in their business as an
accountant) and must have a valid licence to practise or practising certificate.
----------------------
#7- Other directors passport copy (in my case they are British)
#8-Employee passport copy (in my case he is British).

Could you please check the above, and highlight if i need to remove or add any document from the list above?,
Does the accountant letter (#6) can replace any of the other documents?

Another point, an employee have basic salary rate monthly of £1600, without anything mentioned on his payslip apart from basic salary (no number of hours or hourly rate mentioned), do I need to produce new payslips to show the number of hours and hourly rate?

Thanks in advance.

[marcnath]

Hi team,

I have joined a company which already exist, and an employee has joined after my joining date, I'm preparing the required documents for extension/ILR application,

Note: he joined the business after my joining date.

I'm preparing the following for him to be counted as job created, and would like your advice if I need to add or remove any of these:

#1- Companies house document confirming my joining date.
#2- RTI/FPS/Period summary showing the employee joining date (which will be on the first month he have joined the company)
#3- 12 Payslips (including total working hours and hourly rate),
#4-RTI/FPS: for each month of the qualified 12 month period.
#5-Confirmation that no employees (in my case) have been on the company payroll before my joining date, so I need an official document to prove that (i.e. HMRC employer register document or something similar).==> There is no such thing as an employer register that I know of. If the company was registered for PAYE, there would be an RTI/FPS even if there were no employees. If the company was not registered for PAYE, then the registration document should help.
#6-Letter from the accountant:
As per the Home office guide, I need a letter from the accountant fulfill the requirements below:
----------------------
If they took over or joined an existing business, they must also provide a letter from
an accountant, to verify the job creation. The accountant’s letter must contain:
• the name and contact details of business
• the status of the applicant in the business
• the number of posts created in the business.
• dates of the employment created
• registration or permission of the accountant to operate in UK
• the date the accountant created the letter on behalf of the applicant
• If the business did not employ workers before the applicant took over or joined
it, confirmation of this
• a statement from the accountant to confirm the content of the letter to the Home
Office
The accountant must not be the applicant (if they are working in their business as an
accountant) and must have a valid licence to practise or practising certificate.
----------------------
#7- Other directors passport copy (in my case they are British)==> There is no requirement for this
#8-Employee passport copy (in my case he is British).

Could you please check the above, and highlight if i need to remove or add any document from the list above?,
Does the accountant letter (#6) can replace any of the other documents? ==> No

Another point, an employee have basic salary rate monthly of £1600, without anything mentioned on his payslip apart from basic salary (no number of hours or hourly rate mentioned), do I need to produce new payslips to show the number of hours and hourly rate? ==> No

Thanks in advance.

[tier1entrepreneur-AA]

Hi team,

I have joined a company which already exist, and an employee has joined after my joining date, I'm preparing the required documents for extension/ILR application,

Note: he joined the business after my joining date.

I'm preparing the following for him to be counted as job created, and would like your advice if I need to add or remove any of these:

#1- Companies house document confirming my joining date.
#2- RTI/FPS/Period summary showing the employee joining date (which will be on the first month he have joined the company)
#3- 12 Payslips (including total working hours and hourly rate),
#4-RTI/FPS: for each month of the qualified 12 month period.
#5-Confirmation that no employees (in my case) have been on the company payroll before my joining date, so I need an official document to prove that (i.e. HMRC employer register document or something similar).==> There is no such thing as an employer register that I know of. If the company was registered for PAYE, there would be an RTI/FPS even if there were no employees. If the company was not registered for PAYE, then the registration document should help.
#6-Letter from the accountant:
As per the Home office guide, I need a letter from the accountant fulfill the requirements below:
----------------------
If they took over or joined an existing business, they must also provide a letter from
an accountant, to verify the job creation. The accountant’s letter must contain:
• the name and contact details of business
• the status of the applicant in the business
• the number of posts created in the business.
• dates of the employment created
• registration or permission of the accountant to operate in UK
• the date the accountant created the letter on behalf of the applicant
• If the business did not employ workers before the applicant took over or joined
it, confirmation of this
• a statement from the accountant to confirm the content of the letter to the Home
Office
The accountant must not be the applicant (if they are working in their business as an
accountant) and must have a valid licence to practise or practising certificate.
----------------------
#7- Other directors passport copy (in my case they are British)==> There is no requirement for this
#8-Employee passport copy (in my case he is British).

Could you please check the above, and highlight if i need to remove or add any document from the list above?,
Does the accountant letter (#6) can replace any of the other documents? ==> No

Another point, an employee have basic salary rate monthly of £1600, without anything mentioned on his payslip apart from basic salary (no number of hours or hourly rate mentioned), do I need to produce new payslips to show the number of hours and hourly rate? ==> No

Thanks in advance.

Thanks marcnath for your valuable advice, it's much appreciated,

Wrt the last point:
Another point, an employee have basic salary rate monthly of £1600, without anything mentioned on his payslip apart from basic salary (no number of hours or hourly rate mentioned), do I need to produce new payslips to show the number of hours and hourly rate? ==> No

Does this will mean that I will add a hourly rate on the application with out have it mentioned on the payslips?
(i.e. Full time, Hourly rate= £10, and HO will have to calculate how many hours in each month to confirm that its a full time job (30hrs or more per week))

Could you please explain more this point.

Thanks in advance.

[marcnath]

Correct - you have explained it well yourself

[tier1entrepreneur-AA]

Correct - you have explained it well yourself

Excellent.

Thanks marcnath for your confirmation.

Have a good day.

[tier1entrepreneur-AA]

Dear Team,

With the government business support scheme to pay 80% of the employee wages, I'm wondering how we will fill the visa application form for the working hours,hourly rate, and gross pay, How HO will do the calculations based on the gross pay which will be 80% of the normal salary.

working hours on the payslip and FPS can remain based on 30hrs per week??

For March as an example:
Working hours need to be 132hrs to fulfill the 30hrs per week requirement, what we should fill if they Furlough, my understanding that the employees shouldn't do any work if they are Furloughed by their employer.
Hourly rate remain £9
Payslip amount = ?? (zero or 80% of the wages)

How payment can be zero or 80% of the wages and it still classified as FT (30hours per week) while HO make the calculations based on hourly rate and gross payment?, as this will be the values on the visa application and supported by payslips and FPS?

Thanks in advance.

[zimba]

Dear Team,

With the government business support scheme to pay 80% of the employee wages, I'm wondering how we will fill the visa application form for the working hours,hourly rate, and gross pay, How HO will do the calculations based on the gross pay which will be 80% of the normal salary.

working hours on the payslip and FPS can remain based on 30hrs per week??

For March as an example:
Working hours need to be 132hrs to fulfill the 30hrs per week requirement, what we should fill if they Furlough, my understanding that the employees shouldn't do any work if they are Furloughed by their employer.
Hourly rate remain £9
Payslip amount = ?? (zero or 80% of the wages)

How payment can be zero or 80% of the wages and it still classified as FT (30hours per week) while HO make the calculations based on hourly rate and gross payment?, as this will be the values on the visa application and supported by payslips and FPS?

Thanks in advance.

STICK to the dedicated topic on this issue !!!!!! It is unhelpful to have the same discussion all over the forum in every post

uk-tier-1-entrepreneur-visas/impact-due ... 99365.html

[marcnath]

Dear Team,

With the government business support scheme to pay 80% of the employee wages, I'm wondering how we will fill the visa application form for the working hours,hourly rate, and gross pay, How HO will do the calculations based on the gross pay which will be 80% of the normal salary.

working hours on the payslip and FPS can remain based on 30hrs per week??

For March as an example:
Working hours need to be 132hrs to fulfill the 30hrs per week requirement, what we should fill if they Furlough, my understanding that the employees shouldn't do any work if they are Furloughed by their employer.
Hourly rate remain £9
Payslip amount = ?? (zero or 80% of the wages)

How payment can be zero or 80% of the wages and it still classified as FT (30hours per week) while HO make the calculations based on hourly rate and gross payment?, as this will be the values on the visa application and supported by payslips and FPS?

Thanks in advance.

The government pays 80% of the wages. That does not limit you to paying 0 or 80%.

[tier1entrepreneur-AA]

STICK to the dedicated topic on this issue !!!!!! It is unhelpful to have the same discussion all over the forum in every post

uk-tier-1-entrepreneur-visas/impact-due ... 99365.html

Thanks Zimba, all noted.

[tier1entrepreneur-AA]

Dear Team,

With the government business support scheme to pay 80% of the employee wages, I'm wondering how we will fill the visa application form for the working hours,hourly rate, and gross pay, How HO will do the calculations based on the gross pay which will be 80% of the normal salary.

working hours on the payslip and FPS can remain based on 30hrs per week??

For March as an example:
Working hours need to be 132hrs to fulfill the 30hrs per week requirement, what we should fill if they Furlough, my understanding that the employees shouldn't do any work if they are Furloughed by their employer.
Hourly rate remain £9
Payslip amount = ?? (zero or 80% of the wages)

How payment can be zero or 80% of the wages and it still classified as FT (30hours per week) while HO make the calculations based on hourly rate and gross payment?, as this will be the values on the visa application and supported by payslips and FPS?

Thanks in advance.

The government pays 80% of the wages. That does not limit you to paying 0 or 80%.

Thanks marcnath,

I would like to understand if mentioning "furlough" in the employees payslip or FPS will have any bad effect with HO during ILR application, as these months payslips/FPS I will use to count toward job creation,

I will be able to top up the wages to be 100% as usual, so HO can make the calculations based on the 100%, but the accountant said that she will not mention the hourly rate on the payslips, and will only mention "furlough" instead of salary on both payslips and FPS.

I don't want at my last period for my ILR application to be affected by this situation, so I would like to confirm that by receiving this support to cover employees wadges (80%) will not affect payslips/FPS/ Job creation requirements by HO.

Thanks in advance for your support.

[marcnath]

There has never been a requirement to have hourly wages on the payslip.

Receiving the support has no impact on your application.

[tier1entrepreneur-AA]

There has never been a requirement to have hourly wages on the payslip.

Receiving the support has no impact on your application.

Thanks marcnath,

[tier1entrepreneur-AA]

Hi Team,

Following my question above,

The employee who I intend to furlough will be used as part of job creation requirement filling, so I will need to submit the payslips and FPS for those months,

The accountant told me that no working hours will be listed on the Payslips and it will be typed as "furlough" instead of "salary".She have said in details:
"The FPS would show the contracted hours still, and the pay would show as ‘Furlough’ rather than salary.
Payslips will not show hourly rate, it will instead show as ‘Furlough’ and if you do top up then this would be classed as ‘Top up to furlough’. The furlough and top up are both taxable, NICable and Pensionable so they will come under Gross Taxable Pay etc. on the payslip, but it will not show the hours as furlough is not classed as earned income. This is of particular importance when it comes to making a reclaim as we will have to produce reports separating the pay."

How I will be able to fill the visa application for ILR?

Payslip
It will have no working hours, zero working hours and it will be written furlough pay.

FPS
Will include furlough instead of salary

Gross pay will be less than the requirement for FT employment (i.e. Gross pay divided by hourly rate=working hours per month)

For example:
If the working hours for April = 22*6=132hrs, and hourly rate = £9, so in normal case the gross pay = 132 X 9 = £1188
Salary payment = £1188 for April 2020.
Working hours 132hrs
Hourly rate = £9

Furlough case:
Furlough pay = 80% X £1188= £950.4 - working hours = zero, hourly rate ??

I just wondering how I will be able to fill my application on Job creation section for this employee? and If this can make the HO not counting those months on the qualified 12 month period required to fulfill my job creation requirement.

My business need the government support (Job Retention Scheme) for the business employee, but in the same time I don't want to do anything that may affect my ILR application (Job creation).

Another option could be that I could top up the remain 20% from the employee salary in sort of "Top up to furlough"

So in the example above payslip will include:
Furlough = £950.4
Top up to furlough = £1188- £950.4 = £237.6
So the total gross pay for this month remains = £1188 so home office can do calculations as normal, in this case should I split those months with different filling or keep all the 12 months period as it is (hourly rate = £9)

Looking forward for your valuable advice on how I should deal with this.

Thanks in advance.

[tier1entrepreneur-AA]

Hi Team,

Following my question above,

The employee who I intend to furlough will be used as part of job creation requirement filling, so I will need to submit the payslips and FPS for those months,

The accountant told me that no working hours will be listed on the Payslips and it will be typed as "furlough" instead of "salary".She have said in details:
"The FPS would show the contracted hours still, and the pay would show as ‘Furlough’ rather than salary.
Payslips will not show hourly rate, it will instead show as ‘Furlough’ and if you do top up then this would be classed as ‘Top up to furlough’. The furlough and top up are both taxable, NICable and Pensionable so they will come under Gross Taxable Pay etc. on the payslip, but it will not show the hours as furlough is not classed as earned income. This is of particular importance when it comes to making a reclaim as we will have to produce reports separating the pay."

How I will be able to fill the visa application for ILR?

Payslip
It will have no working hours, zero working hours and it will be written furlough pay.

FPS
Will include furlough instead of salary

Gross pay will be less than the requirement for FT employment (i.e. Gross pay divided by hourly rate=working hours per month)

For example:
If the working hours for April = 22*6=132hrs, and hourly rate = £9, so in normal case the gross pay = 132 X 9 = £1188
Salary payment = £1188 for April 2020.
Working hours 132hrs
Hourly rate = £9

Furlough case:
Furlough pay = 80% X £1188= £950.4 - working hours = zero, hourly rate ??

I just wondering how I will be able to fill my application on Job creation section for this employee? and If this can make the HO not counting those months on the qualified 12 month period required to fulfill my job creation requirement.

My business need the government support (Job Retention Scheme) for the business employee, but in the same time I don't want to do anything that may affect my ILR application (Job creation).

Another option could be that I could top up the remain 20% from the employee salary in sort of "Top up to furlough"

So in the example above payslip will include:
Furlough = £950.4
Top up to furlough = £1188- £950.4 = £237.6
So the total gross pay for this month remains = £1188 so home office can do calculations as normal, in this case should I split those months with different filling or keep all the 12 months period as it is (hourly rate = £9)

Looking forward for your valuable advice on how I should deal with this.

Thanks in advance.

It's now have been answered by the Home Office:

Home Office said:

"If you are on a Tier 1 Entrepreneur visa and your business has been disrupted
You no longer need to employ at least 2 people for 12 consecutive months each. The 12 month period you are required to employ someone for can be made up of multiple employees across different months.

Time when your employees were furloughed will not count towards the 12 month period.

If have not been able to employ staff for 12 months in total by the time your visa expires, you will be allowed to temporarily extend your stay to give you time to meet the requirement."

Source link:

https://www.gov.uk/guidance/coronavirus ... -residents

[CR001]

This was already updated by Marcnath yesterday in teh COVID-19 specific topic at the top of the sub forum page!!

uk-tier-1-entrepreneur-visas/covid-19-h ... l#p1892933

[tier1entrepreneur-AA]

This was already updated by Marcnath yesterday in teh COVID-19 specific topic at the top of the sub forum page!!

uk-tier-1-entrepreneur-visas/covid-19-h ... l#p1892933

Thanks CR001,

I have missed Marcnath update yesterday, this is why I have posted my question, and one I found HO update, I posted it on the form.

Small point:
HO has mentioned "You no longer need to employ at least 2 people for 12 consecutive months each. The 12 month period you are required to employ someone for can be made up of multiple employees across different months"

1- What does this mean "can be made up of multiple employees across different months"?

2- Does the job originally need to be 12 consecutive months without any gab period if the business doesn't require a job for few months?

Thanks in advance.