Financial Statement From Accountant- is this ok?

[Moving Forward]

In preparation for my wifes visa application, being self employed I had a suitably qualified accountant (FCCA) check my accounts today confirming the gross taxable income for the last financial year which the financial requirement will be based on.

The accountancy firm produced a financial statement which I signed and approved. I am reluctant to post an image of this statement here so will have to describe it instead.

The top of the page details the turnover, overheads and profit for the year.

Below the figures there is a sentence headed by the word Approval:

"I approve the above financial statement, acknowledge my responsibility for the statement and confirm that all the information and explanations necessary for their compilation has been supplied."

My name is then printed, the date given, and I've signed my name alongside to confirm my approval of the statement.

Below this it reads:

"CHARTERED CERTIFIED ACCOUNTANTS' REPORT ON THE UNAUDITED FINANCIAL STATEMENT

You have approved the financial statement for the year ended 31st March 2012. In accordance with your instructions, we have compiled these unaudited accounts from the accounting records and information and explanations supplied to us.
"

Below that is the Name of the tax centre, along with 'Chartered Certified Accountants' written underneath. The statement is also stamped with the name and address of the accountancy firm.


Given the format I have described is this sufficient for the application?

My unaudited accounts will be included with the documents for this application.

In my sponsors letter, referring to this document , I was going to write:

"For the purpose of this visa application I instructed a suitably qualified accountant to check my unaudited accounts and confirm the figures I have submitted. I used the accountancy firm *********e Ltd. Their accountants are Chartered Certified Accountants and belong to ACCA, a UK Recognised Supervisory Body as defined in the Companies Act 2006 (and as required in Annex FM Section FM1.7).

The Chartered Certified Accountants prepared a financial statement for my 2011/2012 unaudited accounts thereby confirming and certifying a taxable profit of £22131 from the accounting records I supplied. Should the need arise, the Director, Mr ******** FCCA, who is aware of my wife’s visa application, can help with any enquires (his contact details are on the included invoice for this accountancy work)."

Is what I have described ok for this visa application?

[Terpe]

I'm sure you've checked out the Financial Requirement for self-employed

If you're a sole trader, partner or franchise, the specified Evidence comprises:-

In respect of self-employment in the UK as a partner, as a sole trader or in a franchise all of the following must be provided:
(a) Evidence of the amount of tax payable, paid and unpaid for the last financial year.

(b) The latest:-
(i) annual self-assessment tax return to HMRC (a copy or print-out)
(ii) Statement of Account (SA300 or SA302)
(iii) the same for the previous financial year if the latest return does not show the necessary level of gross income, but the average of the last 2 financial years does.

(c) Proof of registration with HMRC as self-employed if available.

(d) Each partner's Unique Tax Reference Number (UTR) and/or the UTR of the partnership or business.

(e) Where the person holds or held a separate business bank account(s), bank statements for the same 12-month period as the tax return(s).

(f) Personal bank statements for the same 12-month period as the tax return(s) showing that the income from self-employment has been paid into an account in the name of the person or in the name of the person and their partner jointly.

(g) Evidence of ongoing self-employment through:-
(i) evidence of payment of Class 2 National Insurance contributions (for self-employed persons)
or
(ii) current Appointment Reports from Companies House (for Directors).

(h) One of the following documents must also be submitted:-
(i) (aa) If the applicant’s business is a registered company that is required to produce annual audited accounts, the latest such accounts; or
(bb) If the applicant’s business is not required to produce annual audited accounts, the latest unaudited accounts and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006);
(ii) A certificate of VAT registration and the latest VAT return (a copy or print-out) confirming the VAT registration number, if turnover is in excess of £73,000; (iii) Evidence to show appropriate planning permission or local planning authority consent is held to operate the type/class of business at the trading address (where this is a local authority requirement); or (iv) A franchise agreement signed by both parties.
(i) The document referred to in paragraph 7(h)(iv) must be provided if the organisation is a franchise.

Hope it helps

[Terpe]

I'm sure you've checked out the Financial Requirement for self-employed

If you're a sole trader, partner or franchise, the specified Evidence comprises:-

In respect of self-employment in the UK as a partner, as a sole trader or in a franchise all of the following must be provided:
(a) Evidence of the amount of tax payable, paid and unpaid for the last financial year.

(b) The latest:-
(i) annual self-assessment tax return to HMRC (a copy or print-out)
(ii) Statement of Account (SA300 or SA302)
(iii) the same for the previous financial year if the latest return does not show the necessary level of gross income, but the average of the last 2 financial years does.

(c) Proof of registration with HMRC as self-employed if available.

(d) Each partner's Unique Tax Reference Number (UTR) and/or the UTR of the partnership or business.

(e) Where the person holds or held a separate business bank account(s), bank statements for the same 12-month period as the tax return(s).

(f) Personal bank statements for the same 12-month period as the tax return(s) showing that the income from self-employment has been paid into an account in the name of the person or in the name of the person and their partner jointly.

(g) Evidence of ongoing self-employment through:-
(i) evidence of payment of Class 2 National Insurance contributions (for self-employed persons)
or
(ii) current Appointment Reports from Companies House (for Directors).

(h) One of the following documents must also be submitted:-
(i) (aa) If the applicant’s business is a registered company that is required to produce annual audited accounts, the latest such accounts; or
(bb) If the applicant’s business is not required to produce annual audited accounts, the latest unaudited accounts and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006);
(ii) A certificate of VAT registration and the latest VAT return (a copy or print-out) confirming the VAT registration number, if turnover is in excess of £73,000; (iii) Evidence to show appropriate planning permission or local planning authority consent is held to operate the type/class of business at the trading address (where this is a local authority requirement); or (iv) A franchise agreement signed by both parties.
(i) The document referred to in paragraph 7(h)(iv) must be provided if the organisation is a franchise.

Hope it helps

[Moving Forward]

Thanks. Yes I have everything covered on that list (if it helps anyone else, I found out when I called HMRC that it takes up to 13 days to receive a requested 302 statement.)

My question really was for reassurance that what I have received from my accountant is sufficient to satisfy this requirement for a sole trader:

“latest unaudited accounts and an accountants certificate of confirmation from a member of a UK recognised supervisory body (as defined in the Companies Act 2006).”

The reason I am unsure is I do not think there is a predefined 'certificate of confirmation' as such and so no set format for how such a certificate could read.

Certainly with my accountant, he was unsure at first what to do - all he could really do was put together a financial statement based on the accounting paperwork I gave him stating that I (not he) approved of the financial accounts from the records I had given to them (if it helps anyone, this task cost me £100). So my question is, is this sufficient for a 'certificate of confirmation'?

[Terpe]

I'm not an accountant so I can't say anything about the format of an "accountant’s certificate of confirmation"
But I was a little bit surprised that your accountants weren't sure how to comply. In my simple thinking, I imagined it would take the same format as that required by a bank in connection with an accountants certificate confirming the income for a self-employed applicantion for mortgage.
Just thinking out loud really.

Anyway, here's my take on what UKBA will be looking for:-

- A letter from an accountant stating that the accounts have been certified by him/her (Including the Accountants Name, Accountant’s Qualification, Accountants Signature, Date, Accountancy firm name and full address)

UKBA State that:-

The accountant must be a member of one of the following:-

the Institute of Chartered Accountants in England and Wales (ICAEW);
the Institute of Chartered Accountants in Scotland (ICAS);
the Institute of Chartered Accountants in Ireland (ICAI);
the Association of Chartered Certified Accountants (ACCA);
or the Association of Authorised Public Accountants (AAPA).

Just make sure that the signing accountant is actually a registered member of one of the above and that their individual membership number is clearly visible.
(if the letterhead contains this information applicable to the specific person signing then that's OK)

......My question really was for reassurance that what I have received from my accountant is sufficient to satisfy this requirement for a sole trader

If what you have received from your accountant complies with the above, then, as an accountant’s certificate of confirmation it will satisfy UKBA.

I may have mentioned this before, apologies if I have, but it's very important that the actual net taxable income meets the Financial requirement.

Good luck.

[Moving Forward]

Thanks Terpe. I wasn't happy with what I was given by my accountant and went back today. I didn't his get his actual signature on the financial statement so have now have asked for this. Also for a self employed person the financial tax year is from the 6th April to the 5th of April the following year. My accounts were up to the 31st March so have asked for this to be amended to April 5th. To make this part of the requirement as solid as I can I have also asked for a signed letter stating that based on the unaudited accounts I presented them my taxable income for the last full financial year was £22131.

I am being extra careful with the self employment evidence. I have read about mixups in which a number of applicants had their visa refused because at the time (pre December 2012) unaudited accounts were not accepted as evidence! This has since been amended in December 2012 Annex FM Section 1.7.

It seems that although I may have been a bit late in realising I can apply now for a visa if I had applied before December I too may have been refused.

[joebloggs]

It seems that although I may have been a bit late in realising I can apply now for a visa if I had applied before December I too may have been refused.

i think for some this is one of the reasons for the backlog at UKBA, they didn't want to refuse many apps as as invalid, as for some the required evidence was impossible to meet. For instance, the requirement was for self-employed people to provide audited accounts was there, but not all businesses have audited accounts. So, if audited accounts are not required by HMRC, then why should UKBA demand them. That requirement has now been changed. There was a requirement to provide a certificate of registration with HMRC as a self-employed person. There is no such thing any more.

that's why there was changes in December, and changes which allowed a bit more discretion in certain circumstances,

[Terpe]

... There was a requirement to provide a certificate of registration with HMRC as a self-employed person. There is no such thing any more...

As I understand it your UTR (Unique Tax Ref) can be accepted as the same.

[russcole]

I have been reading this post with interest as i am also i Sole trader and will be submitting my wifes visa application soon. I am on the understanding that a accountants certificate is only required if the the applicants business is a registered company. As a sole trader you only require documents listed from a to g, point h refers only to registered business's.
I am i reading this correctly.

[Terpe]

.... As a sole trader you only require documents listed from a to g, point h refers only to registered business's.
I am i reading this correctly.

Maybe.
I read it differently.

Solely in terms of accounts, it clearly states under section 7h you MUST provide ONE of the following documents:-

- Audited accounts (if the business is required to produce annual audited accounts)

- Unaudited accounts and an accountant‟s certificate of confirmation (if the business is not required to produce annual audited accounts)

The accountant MUST be a member of a UK Recognised Supervisory Body, as defined in the Companies Act 2006

This applies to sole trader, partner or franchise

[Moving Forward]

Yes, you must provide an accountants certicate confirming the unaudited accounts if you are a sole trader. Unfortunately UKBA have retained my documents so I can't show the format of what mine looked like.

Basically it was a letter showing my gross and net earnings for the year with a signed statement from a suitably qualified accountant at the bottom, stating that based on the accounts I had given to him, he confirmed the amounts shown. I also signed it to say that I accepted his confirmation.

My accounts are very simple, all paperwork was in order. He charged 100 pounds for this.

[Moving Forward]

Also, make sure you meet the rest of the criteria on the full list. I think this includes evidence of all tax paid for that year, SA300 statements etc.

As proof of ongoing self employment I phoned the tax people and asked them to send a statement showing the NI contributions I have made. As it is taken 3 months in arrears I explained this in a letter. I also provided all bank statements for the last tax year and the current year. I gave them no reason to refuse the application.

[russcole]

Thanks for your reply. Hope this doesnt cause me a problem as i submitted my own self assesment to the Inland Revenue. I have everything. When did you submit your wifes visa application?
Changing the subject, can a spouse legally work in the uk, as the question on the visa application, asks do you plan to work in the uk?
Russ

[Moving Forward]

We applied online on the 21st Of Feb this year. We submitted our documents in person to VFS Manila on the 26th of Feb. We had a text from the Embassy on the 28th saying they had received the docs (from VFS) and would begin processing.

After a fairly long wait we heard the great news on the 22nd April. I think it was the 25th when she had the visa in her hands.

The visa was valid from the 18th of April.

Yes a spouse can legally work in the UK. When she arrives she will need to apply for a National Insurance number. On the application form we listed several jobs my spouse may is interested in applying for.

[russcole]

Thats great news for you, your application didnt seem to take too long.

[Moving Forward]

Yes its great news - it didn't seem to take long except for the last week.

Throughout the whole process I have been keeping myself very busy which makes this temporary long distance relationship much easier.

I will be at the airport this coming Sunday morning to meet my wife

Then no more Skype! I am completely fed up with poor skype connections when speaking to my wife. She has an internet shop in the Phils and the connection for the customers is usually ok, but between her and me its often rubbish (I am on a high speed line also).

[russcole]

Yea i know what you mean about the connection. Did you supply any chat print outs with your appliction?

Al the best for Sunday !!

[Moving Forward]

Thanks.

Yes I provided a lot of printouts.. mainly screenshots I had been saving on a daily basis for over a year.

I printed them on both sides to reduce paper and weight.

[russcole]

How was you able to do a screen print. When i left click i dont get the option to print

[Moving Forward]

On your keyboard there should be a key named Print Screen (or some abbreviation of it like Prt Scr).

Press this button to copy a screenshot to your clipboard. You can't see it until you paste it somewhere, typically in photo software.

I use Photoshop. After pressing Print Screen, I open photoshop and click New, to create a new file. I think press Control V to paste the screenshot in the photoshop image and the adjust /crop accordingly.

This method works for most graphics programs including Paint which with comes with Windows ( I just tried out). For Paint, just press the Windows key, type Paint, and this program should be listed.

Many of the screen shots were taken showing our faces on video chat with a little bit of conversation underneath.

[timi]

Hi, did you send bank account statements for business or for private accounts? I'm a little confused on this?
Sorry too it's duplicated on another thread

[Terpe]

Hi, did you send bank account statements for business or for private accounts? I'm a little confused on this?
Sorry too it's duplicated on another thread

Look here at post #15

[timi]

Hi Terpe thankyou
I may be inept but cant find the bank statement info on that post 15 on that link , it seems to be about what amount of cash you can carry, sorry if I make a mistake but ive clicked link 3x and did numerous searches yesterday
One other prob I have is that business account is in overdraft for part of year could that be a problem???
my private account is in credit ,but I use business account to provide finance until sales are made.
will a bank account in debit cause problems and this year its unlikely to be in credit even though my sa 302 income shows an above threshold income.
Any help would be really welcome on self employed requirements some I found easily on forum but I'm confused on this issue sorry

[Terpe]

Hi Terpe thankyou

I may be inept, but can't find the bank statement information on that post 15 on that link, it seems to be about what amount of cash you can carry. Sorry if I make a mistake, but I've clicked link 3x and did numerous searches yesterday

Whoops!

Really sorry about that Timi. My bad senior moment.

It's actually here at post #6

[Terpe]

One other problem I have is that my business account is in overdraft for part of the year. Could that be a problem?

My private account is in credit, but I use the business account to provide finance until sales are made.

Will a bank account in debit cause problems? This year it's unlikely to be in credit even though my SA 302 income shows an above threshold income.

Any help would be really welcome on self employed requirements. Some I found easily on the forum but I'm confused on this issue, sorry.

Here's my response on the other thread:-

..

Hi thankyou, this clears up what I need.
Could there be a major problem as I mentioned in my other reply that business account is in overdraft?

Doesn't matter.
The only important criteria is meeting the income threshold.

For self-employed that means personal Taxable Income.

[timi]

Thankyou on this, it's really helpful advice for self employed