Repayment of Directors Loan in 2.5 Months

[KickAss]

Many Thanks for replying back northernladuk
I applied on Cat D (PSW) where as rules you mentioned are for Cat B.
Apologies, I should have told this on the first place.
For Cat D, this is the point

50.You can include money made available by other people (known as ‘a third party or parties’) but
you must also provide a declaration that the money is available to you or the business that you
are running, from each contributor of funds, together with confirmation that the declarations are
valid. If you are relying on money held by your husband, wife or partner, they will be regarded
as a third party.

So instead of getting declaration that third party will provide me money in future, I reduced the complication by getting money on the first place.

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


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...



Taken from

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

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

[northernladuk]

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.

OP really needs to read his paperwork better. It appears funds from a LTD are allowed as is a directors loan so despite him getting his 200k and 50k mixed up he might have been able to do this but... again he hasn't met the criteria...

Director’s loan
If you have made the investment in the form of a director’s loan, it must be shown in the relevant
set of accounts provided, and you must also provide a legal agreement, between you (in the
name that appears on the application) and the company.
This agreement should show:
• the terms of the loan;
• any interest that is payable;
• the period of the loan; and
• that the loan is unsecured and subordinated in favour of third-party creditors.
If it is not clear from the information provided that the loan is unsecured and subordinated in
favour of third-party creditors, we will not accept the loan for the award of points.

So whipping in and out as evidence is clearly not acceptable.

[stek]

OP really needs to read his paperwork better. It appears funds from a LTD are allowed as is a directors loan so despite him getting his 200k and 50k mixed up he might have been able to do this but... again he hasn't met the criteria...



So whipping in and out as evidence is clearly not acceptable.

IMO OP is absolutely buggered here. Might as well throw application in the bin.

OP already got the visa.

[KickAss]

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.

Every loan I take is my personal money and its 'free to spend'.
But if it still sounds abusing loop hole , I declare that as a Dividend by paying 3K tax then all that 50K will be my personal money and hence 'free to spend'

[northernladuk]

Many Thanks for replying back northernladuk
I applied on Cat D (PSW) where as rules you mentioned are for Cat B.
Apologies, I should have told this on the first place.
For Cat D, this is the point

Meh... thought I was doing pretty well there... I will

[KickAss]

Meh... thought I was doing pretty well there... I will

You are !
The point that you mentioned about director's loan is applicable to all categories including mine.
But that is only for Money that has been invested in business
Where as I have taken loan but not showing this as invested as its still in my personal account.

[KickAss]

You are !
The point that you mentioned about director's loan is applicable to all categories including mine.
But that is only for Money that has been invested in business
Where as I have taken loan but not showing this as invested as its still in my personal account.

northernladuk
I am waiting for you reply.
Can you please tell me If I have done anything wrong ?
I am a genuine guy and if outcome of this thread will result in me abusing a loop hole , I will happily pay any additional taxes to make sure I haven't. Even though I have got the visa....

[eek]

Every loan I take is my personal money and its 'free to spend'.
But if it still sounds abusing loop hole , I declare that as a Dividend by paying 3K tax then all that 50K will be my personal money and hence 'free to spend'

I think the tax on a 50k dividend is more than 3k. It may just be me but I'm sure corporation tax is higher than 6%.

[northernladuk]

northernladuk
I am waiting for you reply.
Can you please tell me If I have done anything wrong ?
I am a genuine guy and if outcome of this thread will result in me abusing a loop hole , I will happily pay any additional taxes to make sure I haven't. Even though I have got the visa....

Not sure why you are asking me. I was looking at the wrong type of visa but the lesson is to read the documentation properly I would have thought. It seemed pretty clear in that document even though it was the wrong one.

Read the requirements and meet them exactly. In my mind if you have to have £50k personally then a temp loan and give back to the business with little or no paperwork isn't enough. If the money is allowed to be part of company then maybe you are ok. Read the paperwork.

[KickAss]

I think the tax on a 50k dividend is more than 3k. It may just be me but I'm sure corporation tax is higher than 6%.

Well 17K was my last years dividend(2012-2013) , for this year(2013-14) up to 32K income (12K salary + 20K Dividend) I dont have to pay tax. but after 32K its 22.5% hence, (50-17-20 =13K). So 22.5% on 13K is approx 2925.
I am not an accountant, this is what I have understood in few months.