Repayment of Directors Loan in 2.5 Months

[northernladuk]

No i am on flat rate vat n I am on a profit of 57k.
Ct is due after 18 months n its due in feb 2014

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.

[KickAss]

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.

Ok here is the snap shot of my company accounts
Income Expenses Operating
£73,490 £15,596 £57,894

£11,579 Corp. Tax
£17,000 Dividends (I haven't taken this out)

[northernladuk]

I do hope that the process for the visa is clever enough to spot people proving the finances are place with money that isn't theirs. Being able to get one with a loan is a joke.

[kevpuk]

I do hope that the process for the visa is clever enough to spot people proving the finances are place with money that isn't theirs. Being able to get one with a loan is a joke.

+1 ^^

All sounds like madness to me - there is not 50k there to take......and even if there were, it is not the point the visa application is seeking out.

[KickAss]

I do hope that the process for the visa is clever enough to spot people proving the finances are place with money that isn't theirs. Being able to get one with a loan is a joke.

For starting any business, People can take loan, I did the same by taking it from my Company. I am paying the loan back to the company after 2.5 months. I still don't get what is wrong in that.
Many entrepreneurs take loan for business and pay it back.

I am here to get your help please. Obviously, This is my initial application, If I don't genuinely invest money in business, then I wont be getting any further extension. So I have to and I will do it.

I had a word with my accountant and he suggested that Although its not recommended but nothing can stop me in doing that. People do that to get mortgages too. What's important is that I should not use any of HMRC's money , Which I didnt when I took that loan + Plus I must pay it back to company before the financial year ends.
So Please I humbly request me to provide your valuable opinion on this.
I neither want to do anything illigal nor exploiting any loopholes.
At worse, I can declare that 50K as divident (17K is from FY 2012-2013) + 12K this year's salary + 20K divident for FY 2013-2014 + 22.5 % Tax on 13K
I appreciate your help and as I said before I want to do every thing legally.
Thanks

[fullyautomatix]

I do hope that the process for the visa is clever enough to spot people proving the finances are place with money that isn't theirs. Being able to get one with a loan is a joke.

Exactly, this looks like a serious exploitation of loophole to get into the country and do IT contracting on the guide of being an Entrepreneur when in fact they are here to grab a job. From what I can see, visa is issued to someone who wants to pour 50K into a venture here in UK and in this instance it isnt happening.

[KickAss]

Exactly, this looks like a serious exploitation of loophole to get into the country and do IT contracting on the guide of being an Entrepreneur when in fact they are here to grab a job. From what I can see, visa is issued to someone who wants to pour 50K into a venture here in UK and in this instance it isnt happening.

Mate !
If I declare that 50K as divident (17K is from FY 2012-2013) + 12K this year's salary + 20K divident for FY 2013-2014 + 22.5 % Tax on 13K.

Then all that 50K is my personal income and then I am investing it into business.
So if I quote your worlds, " visa is issued to someone who wants to pour 50K into a venture here in UK", I am doing exactly the same.

[KickAss]

I am getting a very negative vibe from Guru's on this forum against contractors on Tier 1 Entrepreneur's visa.
I am here to make sure I haven't done anything wrong and If I have then I want to correct it.
So please stop saying that is seems wrong or its not correct.
Please provide rules and guidelines which clearly state what I have done this wrong in XYZ way and How I should correct my mistake if any.

[northernladuk]

Ok lets look at another angle. The requirements are....

(a) You have access to not less than £200,000, or
(b) You have access to not less than £50,000 from:
(i) one or more registered venture capitalist firms regulated by the Financial
Conduct Authority,
(ii) one or more UK Entrepreneurial seed funding competitions which is listed
as endorsed on the UK Trade & Investment website, or
(iii) one or more UK Government Departments or Devolved Government
Departments in Scotland, Wales or Northern Ireland, and made available by
the Department(s) for the specific purpose of establishing or expanding a UK
business, or

You are classing the £50k as your money so that would have to be part of the £200k. It does not meet the criteria for the £50k.

There is a whole section in the guidance but item 39 is pretty clear...

Section b: £50,000 funding
36.You or the entrepreneurial team must have access to £50,000 or more from:
(i) one or more registered venture capital firms regulated by the FCA;
(ii) one or more UK entrepreneurial seed funding competitions which is listed as endorsed on
the UKTI website; or
(iii) one or more UK Government Departments or Devolved Government Departments in
Scotland, Wales or Northern Ireland, which is made available by the Department(s) for the
specific purpose of establishing or expanding a UK business.
37.You must supply documentary evidence as specified in the Immigration Rules and in the
‘Documents we require’ section below. This will include a letter from each venture capital
firm, seed funding competition, or UK Government Department or Devolved Government
Department in Scotland, Wales or Northern Ireland, allowing you to use the funds, and
evidence of the funds.
38.Funds from more than one of these sources may be combined to total the required £50,000.
39.You may not mix your personal or other third party funds with the funding from the venture
capital firms, seed funding competitions and/or UK Government Departments/Devolved
Government Departments towards the £50,000. If you wish to mix the funding you will need to
invest £200,000 into the UK business.

Taken from

http://www.ukba.homeoffice.gov.uk/si...rguidance1.pdf

Unless I have missed something what you have done isn't enough anyway.

[stek]

The funds are not 'free to spend' since you have shuffled them back into your ltd.

Very common Bob trick much abused in student visa apps now plugged, looks like this one will need plugging too.