£18,600 income, supported by joint-sponsor?

[drench]

Hi Guys, these new set of rules aren't quite tested yet but I'm wondering if any of you can give light to our situation.

Basically, my gross annual income is less than the required minimum (£12,500 to be exact). However, this is 100% disposable income as I don't pay any bills, rent etc. My parents have agreed to fully sponsor my spouse but I know the most they can help is a joint-sponsorship. Now my situation is really quite easy. We will be fully sponsored by my parents upon my spouse's arrival here in the UK so any income from either one of us is "spare" money.

However, I'm not confident if they would allow a joint-sponsor to help us pass the maintenance requirement. If they do, then we would not have any problems with this matter. What do you guys think?

On the side note, if I decide to take up a part time job to make up for the shortfall, would I need to be employed for 6 months before we can apply?

In my understanding, I can send an employment contract or letter from the employer to confirm my wages and hours (which would hopefully put my gross income to £18,600).

We're really gutted we missed the July 6 deadline Hubby only recieved the papers he needed last week.

Any ideas from you guys will be greatly appreciated.

[Terpe]

Hi drench, welcome to the forum.

I'm sorry to have to say that the sponsor (that's you) needs to prove a total gross income of £18600.(or substantial savings above £16000)
Yes, it needs to be evidenced for 6 months at that minimum level.
No, for the gross income financial test, no co-sponsor/joint sponsor is permitted.

Really so sorry it's not what you hoped to hear.
But as I've mentioned before on the forum, this is early days yet and I'm sure there will be myriad of legal challenges in the courts.
If you cannot meet the income threshold, just wait and see what transpires in due course.
Just don't ask how long is "in due course".

[drench]

Hi Terpe,

Actually I just read the document from the UKBA website and that actually answered my question.
I guess I we really need to wait another 6 months before we can apply.
Real bummer! We missed this by a couple of days!

Thanks for your help though. I hope this thread answers someone else's question regarding this matter.

Regards!

[Terpe]

Hi Terpe,

Actually I just read the document from the UKBA website and that actually answered my question.
I guess I we really need to wait another 6 months before we can apply.
Real bummer! We missed this by a couple of days!

Thanks for your help though. I hope this thread answers someone else's question regarding this matter.

Regards!

Stick around drench, you'll find a huge volume of very useful tips here based on peoples actual experiences.
I'm sure you have things to help others too

[cheekee]

Can I ask.

My wage slips say £28.000 per annum

But this is taxed etc. so maybe I don't take this home.

Am I correct in thinking the £18.600 is the sum per year you have to take home after tax ?

[lastlid]

Can I ask.

My wage slips say £28.000 per annum

But this is taxed etc. so maybe I don't take this home.

Am I correct in thinking the £18.600 is the sum per year you have to take home after tax ?

It is £18600 before tax. So you are okay.

[imagine]

i think the main requirment is something that satisfies a reason to return to phil, ie employment letter from his employer, property in phil, ect

[drench]

i think the main requirment is something that satisfies a reason to return to phil, ie employment letter from his employer, property in phil, ect

I understand that's the case, but he doesnt have any of those :(... however our main reason for his return is the fact that we WILL be applying for a settlement visa thus overstaying is not an option.

Has any of you guys stumbled across a similar situation before?

[imagine]

how would it be if someone who didnt earn the £18,600 annual, perhaps they earn less or are on benefit,

if they were to take out a loan and put in a savings account to cover the ( £16000 ) in savings required instead of the earnings,

[Terpe]

how would it be if someone who didnt earn the £18,600 annual, perhaps they earn less or are on benefit,

if they were to take out a loan and put in a savings account to cover the ( £16000 ) in savings required instead of the earnings,

Yes Stewart, it's allowed to make up any income shortfall with savings. However it must be from savings above £16000
UKBA say the savings must have been held for a least 6 months prior to application and cannot be borrowed.

[imagine]

if the loan is deposited in a saving account, just a little longer than 6 months it wouldnt show as being borrowed, after which the loan could be repaid , am i right ?

[Terpe]

if the loan is deposited in a saving account, just a little longer than 6 months it wouldnt show as being borrowed, after which the loan could be repaid , am i right ?

Looking deep into the rules there are always going to be "workarounds".
UKBA say that the savings can have originated from a third party (family members) as a gift, but they must not be a loan. If the ECO and caseworker have any doubts they can dig deep.
It's easy stuff when there is access to credit rating agencies. Which there is!

Apart from which, how much would it cost per month to raise a loan significantly in excess of £16000? Don't forget that 30 months down the line you'd still need to meet the financial requirement so no touching that dosh.

[imagine]

Homeowner loan borrowing £16,000 over 5 years. Typical APR of 14.3% variable.
Payment per month
£318.74
Total charge for credit
£3,124
Total amount you repay
£19,124
thats just a quick quote,
also theres equity release loans if you are a home owner which would be much cheaper over a longer period,

as long as you dont dip into the savings the loan could be paid back and if nessacery repeat the process again in good time for when the 30 mths are up,
also if he gets his wife here she can work to help require the £18,600 annual earnings

ps is an equity release or remortgage classed as being a loan , how can it be proved what purpose it was loaned for

[Terpe]

Nice try Stewart. But it would still show on your credit report as a loan. A "standard" check that takes just a couple of minutes.

I feel there are plenty of "workarounds" to be devised. But borrowings in your own name is just too easy to pin down.

Don't forget that the "usable" amount for any shortfall must be above £16000.
Also the amount above £16,000 must be divided by 2.5 (to reflect the 2.5 year or 30-month period before the applicant will have to make a further application) to give the amount which can actually be used for the application.

Lets say you had an income of £15600 (that £3000 shortfall) you'd need to show savings of £16000 plus 2.5x£3000 = £23500
That's quite an amount to borrow. A big risk in more ways than one.
I wonder if anyone earning £15600 would even be eligible for a loan of £23500

[imagine]

but surely a remortgage would not be classed the same,

and heres me awake all night dreaming up a possible leagal loophole, now your filling it in faster than im digging

[Terpe]

but surely a remortgage would not be classed the same,

and heres me awake all night dreaming up a possible leagal loophole, now your filling it in faster than im digging

Stewart, keep the ideas coming mate. That's the only way we might hit on a good 'un

Don't forget that UKBA do allow third party/family member gifts. Just as long as the money is under your complete control.

[imagine]

Stewart, keep the ideas coming mate. That's the only way we might hit on a good 'un

Don't forget that UKBA do allow third party/family member gifts. Just as long as the money is under your complete control.

i guess the family member is not allowed to take out a loan for the gift either for this purpose

[Terpe]

i guess the family member is not allowed to take out a loan for the gift either for this purpose

Why not?
If you are gifted money and it's really yours and it's really under your control then it's OK for UKBA rules.

Not sure about the tax implications though. If there are any or not. Been out of that loop for too long now.

[imagine]

im trying ,,,,, some say im very trying

[Terpe]

im trying ,,,,, some say im very trying

Do you have any idea on the tax implications on a money gift?

[imagine]

Do you have any idea on the tax implications on a money gift?

not at all Terpe, somewhere i heard no tax implications if i gifted lets say my daughter unless i die before 5 yrs is up, but i cant say thats correct, only hearsay

i would imagine if there is that there may be a tax free amount before before its taxable

[imagine]

i dont know if this link is any help

http://www.hmrc.gov.uk/inheritanceta...empt-gifts.htm

[imagine]

how about a gift before the wedding total £10,000 £5000 from each parent.

Exempt gifts
Some gifts made during your lifetime are exempt from Inheritance Tax because of the type of gift or the reason for making it.
Wedding gifts/civil partnership ceremony gifts
Wedding or civil partnership ceremony gifts are exempt from Inheritance Tax, subject to certain limits:
parents can each give cash or gifts worth £5,000
grandparents and great grandparents can each give cash or gifts worth £2,500
anyone else can give cash or gifts worth £1,000
You have to make the gift - or promise to make it - on or shortly before the date of the wedding or civil partnership ceremony. If the ceremony is called off and you still make the gift - or if you make the gift after the ceremony without having promised it first - this exemption won't apply.

[imagine]

other ideas to make up any shortfall,

pay for trips to phil by credit cards, to visit your lady ,and the wedding, dont pay cash put it in bank instead , how long do most guys spend before they can bring their spouse here anyway a year maybe 2 years for some, use that time , if you need a new car get a loan dont pay cash , put the cash in savings,
yes ok going into debt, but you have the cash there in the bank incase of emergency, make cut backs on your spending to pay the car loan,, credit card, you will be earning at the same time to pay these,
its not as bad as it looks because you didnt pay cash for flights or the car , its in the bank instead,
theres no harm in calculating if you can manage to do this safely
credit card balances can be transfrerd to 0% offers
its just an idea, im not encourging anyone to get in debt

none of the above is a loan for the UKBA £16000.

[lastlid]

You can also trade down on a property. Sell a bigger house and buy smaller. If need be.

[lastlid]

Remortgaging has got to be a potential way forward, like I said a few days ago.

Same as moving house and releasing some cash.

You move house, release some cash and apply for the visa 6 months later. I must admit I haven't looked into this fully, but I think there must be some mileage in this - just needs exploring.

Think outside the box....many people have a mortgage and they (ECO) don't seem to take into account the size or the term of the mortgage.

[imagine]

Remortgaging has got to be a potential way forward, like I said a few days ago.

you did, and its looking like the best bet, but not everyone will be able, but if its a way forward for some then why not

[lastlid]

you did, and its looking like the best bet, but not everyone will be able, but if its a way forward for some then why not

Yes. I agree, not everyone can take advantage of that but some can. If you are in a position where you have equity locked up in a property but you don't meet the 18600 minimum salary, for whatever reason, then this could be a way forward.

[Terpe]

Some good thinking and useful ideas.

[gWaPito]

I think I mentioned all the above ideas in another early last week which basically ended the thread ..good to see my original ideas were food for thought, for some