Help please! Funding 50K!

[uncharted227]

Hello, apology if the question has been asked already... though I think I did not find an answer here

The situation is, I am applying for the T1 visa (entrepreneur).
My consultant asked in to put 50K in the business account so I transferred 50k from my personal account to my business account in middle of June.

However, today, he asked me to transfer the money back to my personal account, because he just saw a guy get rejected because he has all the 50k in the business account.

So my question is, should I follow his instruction? Doesnt it look suspicious to transfer large amount of money from you business account three days before submission?


Also, could anyone elaborate on this for me:




56. The amount of money invested should not:
• include the value of any residential accommodation or property development, or property management; or
• be in the form of a director’s loan, unless it is unsecured and is subordinated in favour of the third-party creditors.





thanks!!!!!

[Darvesh]

there so many so called consultant everywhere.....
if u wud have read policy guidelines urself then u wudnt be having prob today.?

according to ukba the access funds(50k/200k) must be in personal account and money in business account will not considered as investment/access money.

[Tripletrouble]

It does not matter for how long you had the money in your personal account as long as you have all the money needed. Just put the money in your personal account and get a fresh statement.

[Tripletrouble]

This is from the policy guidance. I guess you have make a decision. After reading this if you are the director, then then can be in the business account.

Genuine Entrepreneur Test
28.On 31 January 2013 the Immigration Rules changed to tackle abuse on this route, while
leaving genuine entrepreneurs unaffected.
The changes are:
• Where we have concerns, we may ask you to demonstrate that the funds you
have used to apply remain available to you beyond the date of your application. The
funds must continue to be available to you until they are spent by your business or
businesses. ‘Available to you’ means that the funds must be:
(1) in your own possession; or
(2) in the financial accounts of a UK incorporated business of which you
are the director; or
(3) available from the third party or parties named in your application (if
applicable).
• If you are applying on or after 31 January, the declaration from your third party
funds donor must confirm that the funds will remain available to you until they are
transferred to you or to your business.

[entrepreneur123]

you cannot just transfer 50k back in your personal account, i know many guys are or already done it, but it will create some serious problem for them in future if investigated by hmrc. Its now company money not your own money. You need to pay tax on it and e.g get through dividends. best thing is to keep money in business account and apply throgh invested funds, you need to show accountant certificate and unaudited accounts etc read policy guidance for further documentation you will need

Hello, apology if the question has been asked already... though I think I did not find an answer here

The situation is, I am applying for the T1 visa (entrepreneur).
My consultant asked in to put 50K in the business account so I transferred 50k from my personal account to my business account in middle of June.

However, today, he asked me to transfer the money back to my personal account, because he just saw a guy get rejected because he has all the 50k in the business account.

So my question is, should I follow his instruction? Doesnt it look suspicious to transfer large amount of money from you business account three days before submission?


Also, could anyone elaborate on this for me:




56. The amount of money invested should not:
• include the value of any residential accommodation or property development, or property management; or
• be in the form of a director’s loan, unless it is unsecured and is subordinated in favour of the third-party creditors.





thanks!!!!!

[uncharted227]

there so many so called consultant everywhere.....
if u wud have read policy guidelines urself then u wudnt be having prob today.?

according to ukba the access funds(50k/200k) must be in personal account and money in business account will not considered as investment/access money.

yes, such a bad call to consult them!

[uncharted227]

you really make me nervous! I just did that as I dont have much time letf!

you cannot just transfer 50k back in your personal account, i know many guys are or already done it, but it will create some serious problem for them in future if investigated by hmrc. Its now company money not your own money. You need to pay tax on it and e.g get through dividends. best thing is to keep money in business account and apply throgh invested funds, you need to show accountant certificate and unaudited accounts etc read policy guidance for further documentation you will need

Hello, apology if the question has been asked already... though I think I did not find an answer here

The situation is, I am applying for the T1 visa (entrepreneur).
My consultant asked in to put 50K in the business account so I transferred 50k from my personal account to my business account in middle of June.

However, today, he asked me to transfer the money back to my personal account, because he just saw a guy get rejected because he has all the 50k in the business account.

So my question is, should I follow his instruction? Doesnt it look suspicious to transfer large amount of money from you business account three days before submission?


Also, could anyone elaborate on this for me:




56. The amount of money invested should not:
• include the value of any residential accommodation or property development, or property management; or
• be in the form of a director’s loan, unless it is unsecured and is subordinated in favour of the third-party creditors.





thanks!!!!!

[KickAss]

entrepreneur123
Once the money is transferred to company account that money is provided as a loan to the company's director from investor. This means applicant(Investor) has given the director of a company (In this case same person) a loan of 50K to invest in business. Its then directors responsibility to use that 50K and make profit. Once the company makes a profit, it can repay the director loan by returning the same amount or added taxes (based on terms and condition) to the investor. That 50K is already taxed money when investor earned it. so no one will pay tax on that money coz for director its a loan and for investor its already taxed.
However, when company makes profit , they pay all taxes like CT n VAT.

you cannot just transfer 50k back in your personal account, i know many guys are or already done it, but it will create some serious problem for them in future if investigated by hmrc. Its now company money not your own money. You need to pay tax on it and e.g get through dividends. best thing is to keep money in business account and apply throgh invested funds, you need to show accountant certificate and unaudited accounts etc read policy guidance for further documentation you will need

Hello, apology if the question has been asked already... though I think I did not find an answer here

The situation is, I am applying for the T1 visa (entrepreneur).
My consultant asked in to put 50K in the business account so I transferred 50k from my personal account to my business account in middle of June.

However, today, he asked me to transfer the money back to my personal account, because he just saw a guy get rejected because he has all the 50k in the business account.

So my question is, should I follow his instruction? Doesnt it look suspicious to transfer large amount of money from you business account three days before submission?


Also, could anyone elaborate on this for me:




56. The amount of money invested should not:
• include the value of any residential accommodation or property development, or property management; or
• be in the form of a director’s loan, unless it is unsecured and is subordinated in favour of the third-party creditors.





thanks!!!!!

[uncharted227]

thanks for the post,

are you saying I can transfer the money bk without causing any problem?

I do have a few transactions, but all very small, I heard that the company do not have to pay tax if it is under a certain level

entrepreneur123
Once the money is transferred to company account that money is provided as a loan to the company's director from investor. This means applicant(Investor) has given the director of a company (In this case same person) a loan of 50K to invest in business. Its then directors responsibility to use that 50K and make profit. Once the company makes a profit, it can repay the director loan by returning the same amount or added taxes (based on terms and condition) to the investor. That 50K is already taxed money when investor earned it. so no one will pay tax on that money coz for director its a loan and for investor its already taxed.
However, when company makes profit , they pay all taxes like CT n VAT.

you cannot just transfer 50k back in your personal account, i know many guys are or already done it, but it will create some serious problem for them in future if investigated by hmrc. Its now company money not your own money. You need to pay tax on it and e.g get through dividends. best thing is to keep money in business account and apply throgh invested funds, you need to show accountant certificate and unaudited accounts etc read policy guidance for further documentation you will need

Hello, apology if the question has been asked already... though I think I did not find an answer here

The situation is, I am applying for the T1 visa (entrepreneur).
My consultant asked in to put 50K in the business account so I transferred 50k from my personal account to my business account in middle of June.

However, today, he asked me to transfer the money back to my personal account, because he just saw a guy get rejected because he has all the 50k in the business account.

So my question is, should I follow his instruction? Doesnt it look suspicious to transfer large amount of money from you business account three days before submission?


Also, could anyone elaborate on this for me:




56. The amount of money invested should not:
• include the value of any residential accommodation or property development, or property management; or
• be in the form of a director’s loan, unless it is unsecured and is subordinated in favour of the third-party creditors.





thanks!!!!!

[KickAss]

My knowledge as an accountant is fairly limited.
So I wont be able to help you much.
Logically, for this transaction you can say "A loan was allocated to the director but then the agreement was called off".
But seriously mate ! you need an accountant.
I have hired an umbrella company to handle my limited company and I do what my accountant from that company says.
I cannot take any names as that is against this forum policy, but you can Google and select the best you thing on the reviews.
For this transaction, if I were you I might take the risk of doing this. but it can be painful in future. As entrepreneur123 said, Taking money Out form a company just like when you feel is not the correct way and is not recommended. but for this transaction, it might be worth taking risk else it will go on money already invested route and you will require 1000 more documents.

P.S :- This is just my personal opinion, Final decision must be taken by you after consulting an accountant.

[Ent813]

Hi kickass, I just sent you a PM

[uncharted227]

thanks for your input!

my lawyer iterated that it was ok to do it, not sure if it is because he has to say it or he is really confident about it

he said I was the sole director so I can do it, and it would have no effect when I apply for the extension

My knowledge as an accountant is fairly limited.
So I wont be able to help you much.
Logically, for this transaction you can say "A loan was allocated to the director but then the agreement was called off".
But seriously mate ! you need an accountant.
I have hired an umbrella company to handle my limited company and I do what my accountant from that company says.
I cannot take any names as that is against this forum policy, but you can Google and select the best you thing on the reviews.
For this transaction, if I were you I might take the risk of doing this. but it can be painful in future. As entrepreneur123 said, Taking money Out form a company just like when you feel is not the correct way and is not recommended. but for this transaction, it might be worth taking risk else it will go on money already invested route and you will require 1000 more documents.

P.S :- This is just my personal opinion, Final decision must be taken by you after consulting an accountant.