Investing - pay for employees?

[sky_rise]

Hi guys,

I have to invest £50k within the 3 years period.

If I simply transfer money from personal current account into the business bank account, and then will pay salary to my 2 staff members I employed - will it count towards part of investing required amount? if I pay all 50k in Salaries?

Office rent I understand does not count towards invesment?

Many thanks

SR

[sky_rise]

By the way, can we pay any hourly wage?
For example, if minimum salary in SOC code states, say, £24,000pa, can I pay 18,000 to satisfy?

[Olasunkanmi]

@ sky_rise,

I have to invest £50k within the 3 years period.

If I simply transfer money from personal current account into the business bank account, and then will pay salary to my 2 staff members I employed - will it count towards part of investing required amount? if I pay all 50k in Salaries?

It depend if you have invested the money in developing your business and thus expecting profit over a long time rather than immediately. For example if your staff work for you and you are getting regular income from the work they do for you, then the income should be use to pay salary and not the 50k funds directly.

But in a situation where for example you plan to develop a software for a period of 3years before starting to sell the software, then in this situation you can pay staff salary, rents, business expenses from the 50k funds.

Home Office have actually developed the tier1 entrepreneur visa for people who plan to invest their money for a long time but due to the fact that there are some who will have to apply for the visa to get few years to meet long residency, then there will always be some exemptions to the main requirements (loop holes).

[Olasunkanmi]

@ sky_rise,

By the way, can we pay any hourly wage?
For example, if minimum salary in SOC code states, say, £24,000pa, can I pay 18,000 to satisfy?

Minimum wages in SOC code is there because HO want employers who hire staffs from abroad to pay that minimum wage in order to sponsor someone for visa.

But in your own situation you can pay any amount but not below the minimum wages.