Source of origin of funds as personal loan taken in UK

[dino17]

While applying for tier 1 entrepreneur initially in 2014 I took a personal Loan from 3 institutions in uk totalling upto 21000 pounds to show the 50 k amount.I got 25000 pounds from my overseas bank account. I have settled two loans as of now and iam paying monthly instalments for the 3rd loan still.

I had my interview yesterday and had this question about origin of source of funds for which I told the actual fact that portion of my investment amount was from overseas account from my parents and portion of it was arranged through the personal loans taken in UK.

Now iam fearing whether showing the investment amount taken through a personal Loan as told to the compliance officer will have any adverse effect on my application?

2.I have been asked to send my contracts.Can I avoid sending those contracts i have made with clients for data protection reasons?will it become a factor for rejection reason if in case I don't submit my contracts.

3 Also I have been asked to send the proof of origin of funds and iam not sure if I submit my personal bank statement transactions showing the transfer of money to my business account alone is ok or should I am so send the transactions of the loan amounts which got credited to my personal account. Anyway I have already told during the interview that portionof the 50 k investment being a single director was arranged through the personal loans taken in UK.

Too many things to ask at a time.Apologies for the same.Would be helpful if seniors like zimba and macranath can answer these questions of mine.

Huge thanks.

[marcnath]

Now iam fearing whether showing the investment amount taken through a personal Loan as told to the compliance officer will have any adverse effect on my application?

No reason why it should.

2.I have been asked to send my contracts.Can I avoid sending those contracts i have made with clients for data protection reasons?will it become a factor for rejection reason if in case I don't submit my contracts.

Did you agree to send it ? If so, better for you to do so. Data protection is probably not applicable as this is a request from a government department. If there are some truly personal data in the contract, I think it would be acceptable if you redact those.

3 Also I have been asked to send the proof of origin of funds and iam not sure if I submit my personal bank statement transactions showing the transfer of money to my business account alone is ok or should I am so send the transactions of the loan amounts which got credited to my personal account. Anyway I have already told during the interview that portionof the 50 k investment being a single director was arranged through the personal loans taken in UK.

Origin of funds would mean your loan contracts/agreements/transactions.

[Momi]

While applying for tier 1 entrepreneur initially in 2014 I took a personal Loan from 3 institutions in uk totalling upto 21000 pounds to show the 50 k amount.I got 25000 pounds from my overseas bank account. I have settled two loans as of now and iam paying monthly instalments for the 3rd loan still.

I had my interview yesterday and had this question about origin of source of funds for which I told the actual fact that portion of my investment amount was from overseas account from my parents and portion of it was arranged through the personal loans taken in UK.

Now iam fearing whether showing the investment amount taken through a personal Loan as told to the compliance officer will have any adverse effect on my application?

2.I have been asked to send my contracts.Can I avoid sending those contracts i have made with clients for data protection reasons?will it become a factor for rejection reason if in case I don't submit my contracts.

3 Also I have been asked to send the proof of origin of funds and iam not sure if I submit my personal bank statement transactions showing the transfer of money to my business account alone is ok or should I am so send the transactions of the loan amounts which got credited to my personal account. Anyway I have already told during the interview that portionof the 50 k investment being a single director was arranged through the personal loans taken in UK.

Too many things to ask at a time.Apologies for the same.Would be helpful if seniors like zimba and macranath can answer these questions of mine.

Huge thanks.

Ask yourself that people borrow money from banks and start business or not?
It's a normal practice.
There ain't any chance that you will be refused on personal loan.
You should provide them whatever they asked.

[dino17]

Now iam fearing whether showing the investment amount taken through a personal Loan as told to the compliance officer will have any adverse effect on my application?

No reason why it should.

2.I have been asked to send my contracts.Can I avoid sending those contracts i have made with clients for data protection reasons?will it become a factor for rejection reason if in case I don't submit my contracts.

Did you agree to send it ? If so, better for you to do so. Data protection is probably not applicable as this is a request from a government department. If there are some truly personal data in the contract, I think it would be acceptable if you redact those.

3 Also I have been asked to send the proof of origin of funds and iam not sure if I submit my personal bank statement transactions showing the transfer of money to my business account alone is ok or should I am so send the transactions of the loan amounts which got credited to my personal account. Anyway I have already told during the interview that portionof the 50 k investment being a single director was arranged through the personal loans taken in UK.

Origin of funds would mean your loan contracts/agreements/transactions.

Hi thanks for the quick reply....I just listened to the officer when he asked that contracts should be sent ....but indirectly I told asked him whether I can avoid sending documents for data protection reasons.for which he mentioned if there are any personal data then fine........but I didn't specifically mention about whether I will send it or not as that might have projected me in a weak situation and created doubt.The main reason iam asking whether I can avoid sending the contract documentation is that iam doing IT consultancy in Quality management and iam not sure how will they classify my contract as it's as we all know still a grey area. Not sure whether they will deem it as Contract of Services or Contract for services. My contract says Contractor Agreement for the supply of testing services. I Have been mentioned the substitution clause in my contract but still I doubt whether they will treat it as a disguised employment.The client I have the contract with is not an employment business nor a recruiting agency. But they are a Testing services providing company to a diverse list of clients.My issue is if I send the contract and they deem it to be inside IR 35 or disguised employment...it may curtail my visa.Are there anyone on the forum who had previously submitted contracts being in IT consultancy business particularly in testing field and still got approval?will I better off if I don't send it?They(compliance officers during interview) ask contracts with some people and for others they don't ask or tell them it's optional to send contracts during their interviews. Any inputs please....

[marcnath]

In general, HO has the right to ask for any additional documents and not producing them is a ground for refusal.
I can't comment on your situation on contract of services, but if that is not what you are doing, you should be able to defend that. Yes, HO may make wrong assessments but I personally believe that if you are in the right, you will be able to fight it even if it is going to cost money, time and stress.
Having said that, I think HO would need to provide you a written request before they can act on the basis on non production of documents.
So, up to you to decide how you want to proceed.

[zimba]

Under Tier 1E rules you cannot have IR35 contracts as they are akin to employment. So you will be in breach of Tier 1E rules and therefore your visa application could be refused. This issue has been discussed many times on the forum. You must consult solicitors before getting a contract to ensure your contact terms will NOT make your work classified as 'disguised employment'

[dino17]

Under Tier 1E rules you cannot have IR35 contracts as they are akin to employment. So you will be in breach of Tier 1E rules and therefore your visa application could be refused. This issue has been discussed many times on the forum. You must consult solicitors before getting a contract to ensure your contact terms will NOT make your work classified as 'disguised employment'

Hi Zimba....thanks for the reply. Iam not sure whether my contract is inside or outside IR35....it's still a grey area and the case worker might misinterpret if I do send my contract as this ir35 is a new thing.....so I want to know if I shall not send the contract instead as there is a client confidentiality clause mentioned in all my contracts. Can HO reject my application on the sole reason that I didn't give them the contract?

[marcnath]

Under Tier 1E rules you cannot have IR35 contracts as they are akin to employment. So you will be in breach of Tier 1E rules and therefore your visa application could be refused. This issue has been discussed many times on the forum. You must consult solicitors before getting a contract to ensure your contact terms will NOT make your work classified as 'disguised employment'

Hi Zimba....thanks for the reply. Iam not sure whether my contract is inside or outside IR35....it's still a grey area and the case worker might misinterpret if I do send my contract as this ir35 is a new thing.....so I want to know if I shall not send the contract instead as there is a client confidentiality clause mentioned in all my contracts. Can HO reject my application on the sole reason that I didn't give them the contract?

The immigration rules for T1E do not specifically mention IR35 - it is much more loosely defined and they have a good set of criteria listed in the guidance that helps you evaluate if you have a contract for service or it is akin to employment.

Personally, I think I would know if I am in breach. Don't keep trying to second guess HO. You should know whether you provide a service or just labour and if it is the former, you should not overly worry about it. You can clearly set out in an accompanying letter why you believe the contract is one of service and not supply of labour. Use the bullet points in the guidance and show how you comply to any or each of those.

[Evicra]

Hi Zimba....thanks for the reply. Iam not sure whether my contract is inside or outside IR35....it's still a grey area and the case worker might misinterpret if I do send my contract as this ir35 is a new thing.....so I want to know if I shall not send the contract instead as there is a client confidentiality clause mentioned in all my contracts. Can HO reject my application on the sole reason that I didn't give them the contract?

i would suggest get a written expert advice from some accountancy firm or legal advisory serice after showing them your contracts . if they class it out of IR35 then send it to them if not then leave it .
there is one other touch stone to it. what do you feel inside?. it is or its not. YOU KNOW IT BETTER than any expert. wish you best.

[dino17]

Thanks everyone for your time

[bizman]

It is a simple situation. You are a consultant and as such will definitely have a contract for job done for your client. If they are paying you salary and deducting PAYE, NI etc then you have a problem but if you pay your tax through self assessment then I see no problem here