Settlement visas to UK, careful if self employed

[key visa thailand]

Evening guys,

 

Without boring the arse off everybody with this subject but this week I have seen 4 new customers come to my office who have been refused settlement visas to the UK due to financial and they were all self employed and refused for the same thing.

 

As most of you are aware as from the 9th July 2012 the income level if working to sponsor your spouse was set at 18,600 pounds before tax, which to people employed it fairly simple to prove 100% with payslips, P60'S and 6 months bank statements.

 

But when self employed it is a different kettle of fish and more difficult to prove because now the Embassy clearing officers have been trained on how to read and understand financial accounts and tax returns which means like the old days pulling wool over eyes has gone, even letters from accountants are now ignored.

 

Just let me give my opinion on how you should show the financial side if self employed, as there are so many pitfalls it has more holes than a crumpit.

 

I would supply the following.

1. 2 years financial accounts making sure that your last year has an income of 18,600 pounds if sponsoring wife only
   
2. 2 years tax returns making sure your self assesment for the last year is showing income of 18,600 pounds
   
3. if you do not have then make sure you have a business bank account and make sure regular monies go in to that account and match up with invoices supplied to customers or match with your sub contracting slips, dont just use your personal account, sole trader or Limited company get a bank account, make sure the monies go in for 6 months and over and are regular to show the Embassy.
   
4. Letter from you accountant that matches up exactly with your self assesment tax returns as they check and do not forget they have your National Insurance number so they know anyway they just want you to go through all this aggrevation.
   
5. Remember Accounts match tax returns, match bank statements for over 6 months and match letter from your accountant or book keeper if you cannot do this then do not apply until you can.
   

They have just started to notice that the old days with self employment you could get away with murder but now the snake has returned to bite and being self employed is the most difficult to show the financial requirement.

 

The above is my professional opinion and I am dealing with this all day and if you wish to come to my office I can show you refusals, I dont want you to lose money.

 

Darren

1. 
   

[Tee2008]

I am again surprised at the advice given by Key Visas here. It is, again, wrong. The financial requirements are clear, and are stated in the immigration rules Appendix FM-SE. The requirements relating to self-employed sponsors are detailed, and it is totally unrealistic to say, as Key Visas does " I would supply the following", and list documentation that will not meet the financial requirement. These are the requirements for self-employed sole traders ( with the amendments that will come into force on 13th December this year ) :

 

 

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); and,

(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.

© Proof of registration with HMRC as self-employed if available. This evidence must be either an original or a certified copy of the registration documentation issued by HMRC.

(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), monthly bank statements for the same 12-month period as the tax return(s).

(f) Monthly 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) The organisation's latest annual audited accounts with:

(1) the name of the accountant clearly shown; and,

(2) the accountant must be a member of an accredited accounting body specified in paragraph 19 (g)(ii) of Appendix A of these rules;

(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 a 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.

 

As you can see, there is a lot more information required than the advice given by Key Visas. In addition, Key Visas talks about gross income for the self-employed sponsor, but has not actually said what "gross income" is. Yes, there is a requirement for gross income of 18,600 GBP a year, but it is not a s simple as that for self-employed sponsors. The Appendix FM-SE states what will be required as "gross income" for self-employed persons, and the Appendix includes this proviso :

 

 

When calculating income from self-employment under paragraphs 12A and 13(e) this paragraph applies:

(a) There must be evidence of ongoing self-employment at the date of application.

(b) Where the self-employed person is a sole trader or is in a partnership or franchise agreement, the income will be:

(i) the gross taxable profits from their share of the business; and

(ii) allowances or deductable expenses which are not taxed will not be counted towards income.

 

So, just showing an income of 18,600 GBP will not be enough if the self-employed sponsor is claiming tax deductables ( as most do).

 

Key Visas got it right when saying that it is no longer easy fro self-employed sponsors to show that they meet the financial requirements. Where Key Visas got it wrong is in saying this :

 

"Just let me give my opinion on how you should show the financial side if self employed,"

 

With respect, your opinion is not good enough. The specified evidence must be produced or the visa will be refused.

[key visa thailand]

I am again surprised at the advice given by Key Visas here. It is, again, wrong. The financial requirements are clear, and are stated in the immigration rules Appendix FM-SE. The requirements relating to self-employed sponsors are detailed, and it is totally unrealistic to say, as Key Visas does " I would supply the following", and list documentation that will not meet the financial requirement. These are the requirements for self-employed sole traders ( with the amendments that will come into force on 13th December this year ) :

 

 

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); and,

(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.

© Proof of registration with HMRC as self-employed if available. This evidence must be either an original or a certified copy of the registration documentation issued by HMRC.

(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), monthly bank statements for the same 12-month period as the tax return(s).

(f) Monthly 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) The organisation's latest annual audited accounts with:

(1) the name of the accountant clearly shown; and,

(2) the accountant must be a member of an accredited accounting body specified in paragraph 19 (g)(ii) of Appendix A of these rules;

 

2]

(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 a 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.

 

As you can see, there is a lot more information required than the advice given by Key Visas. In addition, Key Visas talks about gross income for the self-employed sponsor, but has not actually said what "gross income" is. Yes, there is a requirement for gross income of 18,600 GBP a year, but it is not a s simple as that for self-employed sponsors. The Appendix FM-SE states what will be required as "gross income" for self-employed persons, and the Appendix includes this proviso :

 

 

When calculating income from self-employment under paragraphs 12A and 13(e) this paragraph applies:

(a) There must be evidence of ongoing self-employment at the date of application.

(b) Where the self-employed person is a sole trader or is in a partnership or franchise agreement, the income will be:

(i) the gross taxable profits from their share of the business; and

(ii) allowances or deductable expenses which are not taxed will not be counted towards income.

 

So, just showing an income of 18,600 GBP will not be enough if the self-employed sponsor is claiming tax deductables ( as most do).

 

Key Visas got it right when saying that it is no longer easy fro self-employed sponsors to show that they meet the financial requirements. Where Key Visas got it wrong is in saying this :

 

"Just let me give my opinion on how you should show the financial side if self employed,"

 

With respect, your opinion is not good enough. The specified evidence must be produced or the visa will be refused.

 

Tee2008, we can all copy information, but with all due respect what you have copied is the same as I have given in laymans terms, its interesting how you have made 6 posts and they are all saying my information is wrong?

[matthewh]

im a self employed carpenter .ive been subcontracting to the same firm for 20 years.i sent 2 years payslips and my 2 tax statements.all was ok.with a worldwide dip I don't envy anyone going through this senario

[key visa thailand]

im a self employed carpenter .ive been subcontracting to the same firm for 20 years.i sent 2 years payslips and my 2 tax statements.all was ok.with a worldwide dip I don't envy anyone going through this senario

Subcontracting is ok Matt because your employer are paying your tax and you get subcontracting slips and most of the time your salary is paid into your bank and yiur tax is paid by your employer so it is similair to actually working for a company even though you are self employed and you can provide documents required,

 

It is when you are self employed and working privately that you have to change the way you work as per my first post.

 

People can disagree but I am only advising from experience

 

I saw only 2 weeks a chartered accountant refused on his documents? work that one out,

 

They asked him to supply his VAT number, CIS number, accountant reference, PAYE number, he supplied all via an e-mail as requested and they refused him saying they had not received the extra info?  So my question is why do people electronically give them there personal National Insurance number when this gives them all they need, they do not ask for no reason,

[brewster]

im a self employed carpenter .ive been subcontracting to the same firm for 20 years.i sent 2 years payslips and my 2 tax statements.all was ok.with a worldwide dip I don't envy anyone going through this scenario

 

Nice to see some migrants from another board here!  Welcome.   (Shhhhhhhhh)

[matthewh]

Subcontracting is ok Matt because your employer are paying your tax and you get subcontracting slips and most of the time your salary is paid into your bank and yiur tax is paid by your employer so it is similair to actually working for a company even though you are self employed and you can provide documents required,

 

It is when you are self employed and working privately that you have to change the way you work as per my first post.

 

People can disagree but I am only advising from experience

 

I saw only 2 weeks a chartered accountant refused on his documents? work that one out,

 

They asked him to supply his VAT number, CIS number, accountant reference, PAYE number, he supplied all via an e-mail as requested and they refused him saying they had not received the extra info?  So my question is why do people electronically give them there personal National Insurance number when this gives them all they need, they do not ask for no reason,

yes you described my situation perfectly.im not a business as such.i claim my overpaid tax back after april yhe 6th

 

Nice to see some migrants from another board here!  Welcome.   (Shhhhhhhhh)

nice to be here sir