FLR : £18,600 Salaried/ Non Salaried calculations

[Rob180]

Could anyone advise regarding this please?  Regarding FLR Category A applications,  the guidance talks about meeting the £18,600 pa figure which is £9300 for the 6 months relevant to the application. It explains how this can be met through either salaried employment, or non-salaried where a mean figure is used from the 6 months gross earnings and that for both options overtime can also be included. How would they calculate this if the first 2 months are non-salaried but the next 4 are salaried because the employer has changed all employees over to salaried? Would they do 2 separate calculations IE £1550 gross per month required for the 2 non salaried months, then base the next 4 months on salaried? The guidance notes don't mention scenarios like this, where an employer has changed the employees method of payment, they only talk about 6 months of salaried or non-salaried income.

 

Thanks

 

 

[7by7]

I think situations like yours are covered by Category B: Less than 6 months with current employer or variable income – person residing in the UK of the financial appendix.

 

Quote

5.3.1. This category can be used where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in salaried or non-salaried employment at the date of application, but has not been with the same employer and/or not earning the income level relied upon in the application for at least 6 months prior to the date of application. It can therefore be used by those who have been with their current employer for less than 6 months, or who have been with their current employer for at least 6 months but earning a variable income and wish to be considered in this category rather than under Category A.

(7by7 emphasis)

 

[Rob180]

Thanks, this could be a problem as part of Category B mentions income over 12 months. Will need to take another look at the rules.

[7by7]

Does your wife work?

 

If she does, remember that for FLR and ILR applications her income can be used as well as, or even instead of, yours.

[Rob180]

Yes she works, and her income when it was non salaried was above £18600 with overtime included. Now they've changed it to salaried it will still be over £18600 with overtime. The problem comes because they've changed everyone's non salaried payment to salaried 2 months into the 6 relevant to the application, which as you indicated might lead to them applying Category B rules and not A.  B seems to have something about salary levels in the previous 12 months not just 6. Her income was less in the few months preceding the first 2 of the relevant 6 and would fall slightly short I think. I was hoping this application could be done solely on her income as I've become self employed recently and the criteria for that to be used looks horrendous. Her income might only be £1000 a year short so obviously mine would push it well over £18600. Do you think providing proof of self employment income is less difficult than I'm thinking after reading the criteria?

 

I've had a closer look at Category B. If you have earned £18600 in the 12 months preceding date of application you meet the requirement. I think she might just make that by increasing her income with overtime between now and the end of April. I'm going to have to check back her earnings from 30th April 2018 until today and project what she needs to earn in the next 3 months. 

 

Many thanks for your help with this 7. You've alerted me to the fact that a Category B assessment will probably be made, which means I can work out exactly what she needs to earn in the next 3 months. I'll update you once I've done the calculations.

 

cheers

 

 

[7by7]

20 hours ago, Rob180 said:

Yes she works, and her income when it was non salaried was above £18600 with overtime included. Now they've changed it to salaried it will still be over £18600 with overtime

 Ah, I think I see.

 

It's her income you've been asking about all along; right?

 

What about yours? 

 

As already said, for FLR and ILR the income can be the sponsor's (yours), the applicants (her's) or both added together.

 

Can you not use your income alone and so forget about the complications caused by the change in her contract?

 

Self employed income can be arduous to evidence, see part 9 of the appendix; but it still might be easier.

[Rob180]

Sorry if I didn't make it clear it was hers. I was hoping to avoid evidencing the self employment part because of the hassle. Until they changed her contract she would have passed the 18600 barrier just by her non-salaried income. Now they've changed it after 2 of the 6 relevant months to the application, it appears that although such a change is outwith anyone's control, under Category A it looks like they would deem her lowest salary in the 6 months as 0, as 2 of the month's were non-salaried. My self-employed income alone wouldn't pass the 18600.

 

Under Category B the guidance notes say 2 parts have to be met:

First, where the applicant’s partner and/or the applicant (if they are in the UK with permission to work) is in salaried employment at the date of application and has been with the same employer, or earning the amount relied upon, for less than the last 6 months, they can count the gross annual salary at the date of application towards the Appendix FM 1.7: Financial Requirement August 2017 25 financial requirement.

 

Her salary at the date of application is going to be about £1000 short of 18,600 which unfortunately means I'll have to use my income to get it over the 18600. As it's only another £1000 a year required that obviously isn't a problem. The problem is the hassle and more expense. I'll need to get an accountant to produce figures even though I'm not due to do a self-assessment until January 2020 as HMRC extended the time allowed for any new form of self employment.

 

The 2nd part which has to be met which states income of 18600 has to be shown from the past 12 months, can probably be met by her income alone, it's the first part that's the problem.

 

Do you see any way of avoiding using the Category B route including my self employment income?  I might be wrong, but it does appear that under Category A, if you are salaried for 4 months and non-salaried for 2, they'll take those 2 months as the lowest months and produce a salaried figure of 0?

 

If there's no way round that, I'll just have to go down the Category B route using both our incomes which looks like a whole lot more hassle and more expense.

 

 

 

 

[7by7]

12 hours ago, Rob180 said:

If there's no way round that, I'll just have to go down the Category B route using both our incomes which looks like a whole lot more hassle and more expense.

Unfortunately, I think that's what you will have to do.

 

Though it may be worth speaking to an immigration advisor at your local CAB if they have one.

[Rob180]

Quote

 

Thanks for your help 7, I at least know where I'm at now. This rule makes no sense, but even the Supreme Court upheld it, which is even worse. The most ridiculous thing about it is that it takes no account of income and Expenditure. So person X earns 18,600 has a large mortgage and credit card debts and has a disposable monthly income of 0, but person Y earns 18,500 has no debts, a small or even no mortgage and a disposable income of several hundred a month but person Y doesn't meet the financial requirement. I'll avoid getting on the soapbox as ranting isn't going to get it changed!

 

cheers

[Rob180]

The situation with her method of payment from work has changed back to non-salaried from salaried. After 1 month of salaried, the company changed it back to non salaried because it generated huge amounts of queries from employees. So now she is back on NON-SALARIED. When the time comes to make the application in 2 months she is going to have 5 non-salaried payslips and 1 salaried! She will have earned more in total than the £9300 required for the 6 months prior to application, but 1 of the months is going to be salaried.

 

As she won't be salaried at the date of application now, it will have to be based on non-salaried, probably under Cat A. There's only going to be 5 months non salaried which would lower the non-salaried figure in total below £9300 for 6 months, but they surely can't disregard the 1 month of salaried payment as it was something the employer put in place then reversed after 1 month? The same problem would arise in Category B with the 12 months income, there would be 11 non salaried payments and 1 salaried which again would lower the annual total below £18600 if only non-salaried income was counted.

 

Her total income for the 6 months prior to application will be above £9300 and above £18600 for the past 12 months. I'm just not sure how they will calculate this with 1 month salaried stuck amongst non-salaried payslips?

 

The Guidance notes make no reference to any situations where the employer has altered the payment method for any period amongst the relevant period preceding the application.

 

Do you think 6 months payslips and bank statements showing gross income above £9300 in the 6 months relevant under Cat A would be acceptable despite 1 month being classed as 'salaried', if a letter from the employer was attached explaining why 1 month was salaried?

[rasg]

I am self employed and I gave my accountant a copy of the guidelines and asked him to sort

it out. The £100 he charged me was well worth it.

[7by7]

17 hours ago, Rob180 said:

When the time comes to make the application in 2 months she is going to have 5 non-salaried payslips and 1 salaried

 Is that a problem?

 

I can see nothing in the guidance or the rules to say that the two cannot be combined.

[Rob180]

Thanks all. I suppose they would have to allow them to be combined, as they couldn't disregard one just because it was termed salaried or non-salaried. The fear with those rules is always that there's some hidden 'disqualifier' somewhere. I might end up doing what you did RASG and provide my self employed income evidence just to be certain. I'll see how close she is to £18600 on her own income by April, if it's a bit too close for comfort I might just have to go to the accountant. If he only charged £100 that's ok, I had visions of larger charges hence my attempts to avoid it now the visa fees have all gone up!

 

 

[Rob180]

Another query if someone could advise please? Regarding 'Specified Evidence' in relation to the Financial Requirement, there is a part where it says a letter from the employer is required stating salary level, length of time paid salary at this level and type of contract. In the past I've had to obtain this, but this time the application wil be based on my wife's income which is non-salaried. The requirement for this letter appears to only apply to salaried. It doesn't mention such a letter being required for non-salaried. I'm assuming thus that it isn't. However, I'd be obliged if someone could confirm that, as I always think there will be some hidden clause somewhere that I've missed. Apologies if this question seems a bit obvious!

 

Thanks.