Repayment of Directors Loan in 2.5 Months

[northernladuk]

Maybe!

I doubt it has anything to do with the salary paid though, we assist our clients with their Visa applications every day and, despite the many inconsistencies we see in the requirements, the salary level is not one of them.

Yeah, I had a quick look and can't see that number stipulated anywhere. Accountant error?

[KickAss]

Wow. I am confused. So you currently here on a Tier 1 Entrepreneur Visa and you have been working as a perm and now as a contractor under that visa?

Where is the 17k from 2012/2013 year?

Yes, As soon as I switched to T1E I cannot take any permanent job.

[northernladuk]

Yes, As soon as I switched to T1E I cannot take any permanent job.

But surely you can't take a contracting one either? You should be investing your 50k and taking on 2 members of staff. Being a contractor isn't being an entrepreneur.

So the Visa abuse starts.

[KickAss]

I cannot see why those circumstances would result in a salary of £12,000 being paid.

Did your accountant not explain the reasons behind their recommendation?

No, I am going to give him a call and ask him .
I guess I should ask him why its 1005.88
It surely has nothing to do with Visa coz applying for visa was not in picture when he did that.

[KickAss]

But surely you can't take a contracting one either? You should be investing your 50k and taking on 2 members of staff. Being a contractor isn't being an entrepreneur.

So the Visa abuse starts.

No!!!!!!!!!!!!!!!!!

2 member of staff is the extension criteria and its not that you just open company and sit as director in a AC cabin !
Its all about creating more jobs. I have to in future employ 2 UK citizens as a permanent employee in 3 years and that is the extension criteria. Nothing to do with initial application.
And I can work as a contractor coz UKBA ask for active contract them self.
Plz stop thinking that I am abusing this visa !!!!
I am quite tired of you guys accusing me all day that I am doing it wrong.
I bloody studied that policy guidelines over 10 times over a span of 5-6 months and I exactly know what I did !!!

[eek]

No!!!!!!!!!!!!!!!!!

2 member of staff is the extension criteria and its not that you just open company and sit as director in a AC cabin !
Its all about creating more jobs. I have to in future employ 2 UK citizens as a permanent employee in 3 years and that is the extension criteria. Nothing to do with initial application.
And I can work as a contractor coz UKBA ask for active contract them self.
Plz stop thinking that I am abusing this visa !!!!
I am quite tired of you guys accusing me all day that I am doing it wrong.
I bloody studied that policy guidelines over 10 times over a span of 5-6 months and I exactly know what I did !!!

Did you not think this may not be the site to ask your questions?

If you carefully read through you posts you will see that you look like someone trying to pull a fast one to remain in this country.

Surely if you are already in the UK you should be using the extension criteria with the 2 members of staff requirement?

[northernladuk]

No!!!!!!!!!!!!!!!!!

2 member of staff is the extension criteria and its not that you just open company and sit as director in a AC cabin !
Its all about creating more jobs. I have to in future employ 2 UK citizens as a permanent employee in 3 years and that is the extension criteria. Nothing to do with initial application.
And I can work as a contractor coz UKBA ask for active contract them self.
Plz stop thinking that I am abusing this visa !!!!
I am quite tired of you guys accusing me all day that I am doing it wrong.
I bloody studied that policy guidelines over 10 times over a span of 5-6 months and I exactly know what I did !!!

Maybe it is perception then. T1E opens up a path for someone to come in to the country to open a new business and provide some growth to the economy by employing people and creating a business.

What it does not do is open up the ability for you to come in, work for yourself under a scheme HMRC isn't pleased with in the best of situations and add nothing to the economy take roles off existing contractors.

If you have no intention investing in a business with employees and just work for yourself then it is visa abuse plain and simple.

You can't for one minute think this board is going to agree with what you are doing.

[mudskipper]

Not sure if you missed it, but I think Martin answered your original question about repaying the loan in post 7

[d000hg]

Ah, so another post explaining how to exploit Entrepreneur visa. Just why the government is so lax about these things I dont know. Arent you supposed to invest 50K in the UK and show that you are an Entrepreneur ? If so, taking a loan out to show 50K funds to get visa and then be on your merry way working as IT contractor undercutting the rest of us, sounds like a loophole exploitation to me.

Would be interesting to know if this was 50k profit and not money set aside for CT and VAT which I suspect it is. If that is the case you are screwing your business to screw your visa. Nice, we will all be pleased to help you out with that situation....

Whereas those of us exploiting the law to avoid paying any NI or higher rate tax but still get state pension and massive contributions to private pension are above reprieve?

I know when CT is due but that doesn't mean you can use it all. It accumulates per month and isn't your money to include in your calculations. Same for the flat rate. Your profit would be what is in the bank minus the vat and CT that has been accumulated to date.

The "CT and VAT isn't your money" line isn't actually true though, is it? It makes very good sense for accounting to know you need to set it aside, but it is still the company's money and then HMRC issue a bill which the company has to pay. The company has to meet a bill from HMRC, you have to do the same for personal tax but with the possible exception of VAT you are NOT holding HMRC's money for them.

[northernladuk]

The "CT and VAT isn't your money" line isn't actually true though, is it? It makes very good sense for accounting to know you need to set it aside, but it is still the company's money and then HMRC issue a bill which the company has to pay. The company has to meet a bill from HMRC, you have to do the same for personal tax but with the possible exception of VAT you are NOT holding HMRC's money for them.

True enough but it is just too complicated to explain in posts so it is the right thing to say for all intents and purposes. At the end of month 10 where you can still make the 20K to cover the bill you could say all the money is yours yes but part way through that month you suddenly find yourself not being able to cover your tax bill on paper (and then added complication of not having enough to actually pay it etc). Just not good advice to consider it yours and not factor it IMO. Technically you are right though I guess.