Self Employment & Cash Savings - last financial years income - can she apply now?

[Moving Forward]

I think I have made a mistake and overlooked something for my wife's future visa application.

I am self employed. I thought that cash savings held for at least 6 months to the required amount could count towards any shortfall in income if you are self employed.

However looking again today at 5.3.6 Category F Self Employment (last financial year) section FM 1.7 it says that cash savings do not count.

Here is my predicament and there could be a way out of this for me.

1. Last full financial year (April 2011-March 2012) I made a gross profit just above the £18600. - On this basis alone can she apply for her visa now?
2. This financial year, April 2012- March 2013 my predicted earnings self employed will not meet the £18600 requirement. My family have kindly gifted me a large sum of money to make up the cash shortfall - it will not be until early June 2013 (a new financial year) that these savings have been in my account for more than 6 months.

Am I right that in thinking that if the cash savings aren't accepted then my wife can simply apply now (or before the end of March 2013) and use my earnings from April 2011-2012 to support my application. She has not done her English test yet, the earliest booking is mid Jan in Manila, so we should be able to get the application in time before the end of this financial year, so the previous financial year can be still counted.

Now, when she arrives, I will be relying on income from her work here to make up any future shortfall. I am assuming we can take my combined income from self employment and her salaried income to meet future requirements.

Panicking here a bit now, however it seems like I may be able to get my wife here earlier than I thought if I can go on the 2011/2012 financial year accounts and get her application submitted before the end of March this year.

Also, when is the official date the application is first made? When the visa fees are paid or from the date of appointment with embassy?

[benjy]

i am in a similar predicament, i am self employed and i only have been for a year and a half. i m wondering what should i do because i cant supply the 3 years of books? do i supply my last years and my previous p45 's from when i was employed... ? but to answer your question i would say if you apply before the end of the tax year this years won't affect you.

[Moving Forward]

Thanks for the reply. This evening I have printed off the documents and read them carefully. It certainly makes it easier reading a print out rather than from a screen.

The mistake I made was not to scrutinise the official information myself. I thought I could top up to the required level through cash savings held for six months but its not allowed. I've actually not missed too much time due to this.. I got married in September had a long honeymoon and a temporary marriage certificate was not issued until November.

Anyway, after reading December 2012, Annex FM Section FM 1.7 tonight, I meet their Category F financial requirement and my partner will be able to apply provided it is before the end of March. Even if she fails her IELTS in mid Jan (her English is good) there should be enough time for retests before the end of March. I am getting excited now as I thought it would be late summer when she gets here.

Benjy, if you have been self employed for 1.5 years, do you meet the financial requirement for the last financial year? If so you are in the same position as me and can simply provide evidence for the last financial year - you won't need to supply 3 years of books. Just evidence from the last financial year as specified in their documents along with an accountants certificate that the return is valid (along with evidence that you are self employed at time of application).

The exact requirements are in Annex section FM1.7 and Appendix FM-SE. I have never used an accountant before as my accounts are very simple and I've filed returns myself. I will get in touch with an accountant soon to go over my documents and provide the certificate.

The main things I learned today regarding self employment and the financial requirement are this:

1. Cash savings do not count

2. You qualify if you meet the financial requirement for the last full financial year (Category F requirement)

3. You qualify if you meet the financial requirement by taking an average of the last two full financial years (so, if one year was not so good and the other better, the other year may boost the average and meet the requirement). (Category G requirement)

4. .. and this is also important to me. 9.5.1. of Annex Section FM 1.7


"When self employed income is being used to meet the financial requirement for an initial application for leave to remain as a partner under Appendix FM by an applicant who used such income to meet that requirement in an application for entry clearance as a fiance(e) or proposed civil partner under that Appendix in the last 12 months, the Secretary of State may continue to accept the same level and evidence of self-employment income that was accepted in granting the application for entry clearance, provided that there is evidence of ongoing self employment at the date of application for leave to remain."

So I read that to say you won't need to provide evidence of the financial requirement again just evidence that you are self employed (eg you pay class 2 NI contributions).

Btw, when you apply for indefinite leave to remain (settlement) it seems the financial requirement won't be needed just:
"both of you can support yourselves and any dependants without needing public funds;"
http://www.ukba.homeoffice.gov.uk/visas-immigration/partners-families/citizens-settled/spouse-cp/settlement/
along with other criteria being met like adequate accommodation.

My understanding as a self employed person from this evenings research is that it's only the initial visa application which is under such scrutiny and that I don't need to worry too much about meeting future financial requirements providing I can show that I am still self employed and support my spouse.

[Terpe]

The specific rules for those who are self-employed can be a little complex and confusing.

If you feel comfortable with your own research and understanding that's fine.
If there is any doubt it may be worth spending a small fee for a good professional consultation.

As you know there are two categories:-
- Category F - you are in self-employment at the date of application and using income from the last full financial year to meet the financial requirement.

- Category G - you are in self-employment at the date of application and choose to use an average of the income received in the last 2 full financial years to meet the financial requirement.

Taxable income for Self-Employed is revenue less business expenses.
If the business accounts show that the person is being taxed on an amount less than £18600 then the application will fall for refusal.

Quite a number of people have slipped up on this.
Sometimes it may be necessary to adjust the business expenses structures and 'tax-breaks'so that taxable income is £18600 or more.

Sounds strange but be aware.

Under 'normal' conditions you may be trying to keep taxable income to a minium.
Under UKBA requirements you may need to uplift your taxable income.

[Terpe]

...My understanding as a self employed person from this evenings research is that it's only the initial visa application which is under such scrutiny and that I don't need to worry too much about meeting future financial requirements providing I can show that I am still self employed and support my spouse.

That only applies for the first application of FLR(M) of a Fiance(e) visa holder following marriage.
It does not apply for the subsequent FLR application (after 30 months)

[Moving Forward]

For the tax year 2011/12 I submitted a figure of £19900 gross income. However going over my accounts today I think I have been overzealous with my expenses and when I see an accountant they may suggest that the expenses should be lower & gross income higher. I am a web developer working from home and make money through Google Adsense (the same as the ads displayed on this website). My overheads are very low. Apart from domain name registration and hosting all I can really claim are a portion of household bills which I may have set too high.

Anyway, it still means I meet the requirement but I may have to pay more tax and that the amount I put on my initial 2011/12 return and what I will declare on the visa application (and signed confirmed by an accountant) will be different. I signed into the HMRC online tax service this evening and noticed that there was an option to make an amendment to a previous tax return. I will speak to an accountant about this. I will detail any discrepancy in my sponsor letter.

[Terpe]

Please believe that the key issue is your taxable income.
This is the number that UKBA are going to make their decision on for financial requirement. Nothing else.
You may find the need to re-jig your tax return

Don't take any risks at all. Be FULLY compliant. Period

[Moving Forward]

Thanks I will. I will seek the advice of an accountant.