Entry Clearance - ILR & Benefits

Hi all, my situation is as follows:

A. My wife has applied for spouse visa awaiting answer.

B. I am self employed & earned above £18,600 in my last financial year April
2014 to March 2015 & i have included this in my spouse visa application.

C. We have been blessed with a baby boy who is a British Citizen by Descent.

D. In this financial year 2015 to 2016 i may not earn enough due to contract work.

E. I own my house.

My question are:

1. If needed & entitled, can me & my wife apply for working tax credits, child tax
credits & child benefit?

2. How will this affect 'Indefinte Leave to Remain' ?

3. After my wife receiving 'Entry Clearance', does she only need to apply for 'Indefinte Leave to Remain' & 'British Citizenship' only?, or have i missed anything on the route to be a British Citizen?,

4. my wife only needs to apply for 'Indefinte Leave to Remain' after 5 years?, Is my assumption correct ?

Please excuse questions 3 & 4 in this section but i thought its relevant to 'benefit section' as i need to know when claiming benefits is applicable.

I appreciate your replies & thankyou in advance.

Thankyou for taking your time in reading this post.

Also my son has his British Passport & is waiting to travel with his mother as soon an answer has beed given for 'Entry Clearance'.

If your son is a British citizen by descent, I take it you are a British citizen otherwise than by descent. Is that correct?

ab339 wrote:3. After my wife receiving 'Entry Clearance', does she only need to apply for 'Indefinte Leave to Remain' & 'British Citizenship' only?, or have i missed anything on the route to be a British Citizen?,
4. my wife only needs to apply for 'Indefinte Leave to Remain' after 5 years?, Is my assumption correct ?

The Entry clearance will be for a period of 33 months. She will then need to apply for Further Leave to Remain (FLR), which should give her leave to remain for 30 more months. After five years, she can then apply for ILR. If you are a British citizen (and assuming that you remain married), after getting ILR, she can immediately apply for citizenship as the spouse of a British citizen.

Thanks for replying secret.simon.

Yes indeed i am a 'British citizen otherwise than by descent'.

Can anyone answer questions 1 & 2, if needed & an application is made for working tax credits, child benefit & child tax credits, by doing so will this be in breach of 'No Recourse to Public Funds' & will this affect 'Further Leave to Remain' as well as 'Indefinite Leave to Remain'


Many Thanks in Advance.

1. Claim child benefit in your name only. Once your wife is in the UK, you can claim tax credits but it must be in joint names.

2. No effect on visa extension and ILR.

CR001 wrote:1. Claim child benefit in your name only. Once your wife is in the UK, you can claim tax credits but it must be in joint names.

2. No effect on visa extension and ILR.

Thanking you for your reply CR001.

When you say i can claim tax credits, if necessary, do you mean working tax credits & child tax credits?

Also just to clarify, do i need to be earning minimum £18,600 once my spouse has 'Entry Clearance' ?

Many Thanks Again.

If CR001 isn't around at the moment, I can confirm yes working tax credits & child tax credits in joint names.
You will need to show earnings of £18,600 when your wife applies for her 2.5 year FLR(M) extension. These can be joint earnings at this stage.
Do bear in mind that for self-employed earnings, only the nett income after business expenses (the amount on which you have paid tax) will be taken.

Thanks Casa for your response.

My son is a British Citizen that will travel with his mother. What can happen if I do not earn £18,600 or above in my financial years after 'Entry Clearance', can this result in refusal for FLR & or ILR?, as i will only know what earnings i have at the end of the financial year due to doing contract work.

Many Thanks.

Any update on this anyone.

Many Thanks.

If you aren't able to meet the minimum earnings level at the 2.5 year extension stage, your wife would have to apply for FLR(FP) which is a longer route to settlement.

You can add your wife's salary too to make the financial requirement for her next visa.

Watch on Wednesday to see which are the first benefits they are going to cut or remove to make the first 12 billion cut from the welfare bill.

Thanks for your reply people.

As I understand it now there is a 5 year & 10 year route:
https://www.gov.uk/government/uploads/s ... /PP10b.pdf

5 year route is the 5-year route as a partner or parent is for those who meet all of the suitability and eligibility requirements of the Immigration Rules at every stage; see below.

10 year route is for when you do not meet all of the requirements set but meet some of the 5 year route requirements, see below.

Appendix FM provides two routes to settlement on the basis of family life as a partner or parent. These are a 5-year route and a 10-year route where:
 the 5-year route as a partner or parent is for those who meet all of the suitability and eligibility requirements of the Immigration Rules at every stage;
 the 10-year route as a partner or parent, which is only applicable to in-country applications, is for those who meet all of the suitability requirements, but only certain of the eligibility requirements as a partner or parent where paragraph EX.1 of Appendix FM is also met. Paragraph EX.1 is not an exception to the Rules, but to certain eligibility requirements of the 5-year partner and parent routes under Appendix FM. It provides the basis on which an applicant in the UK who does not meet all of the eligibility requirements of the 5-year partner or parent route can qualify for leave to remain under the Rules on the basis of their family life in the UK.

Hopefully I can meet the rules for the 5 year route as a 'company director' via salary & dividends.

I will query this & post back here to get a second opinion. Hopefully this post helps many in a similar situation.

I believe I can earn up-to £8052.00 per annum without paying any Tax & NI & the difference in Dividends.

' from 6/4/15, a contractor operating through his own ltd company who is not a higher rate taxpayer is overall better off taking £671 pm salary (£8052 pa) and can take up to £30,900 net dividends tax free. This way, no NI, PAYE or income tax (on dividend income) is payable. Taking this amount of salary safeguards the entitlement to state benefits even though you don't pay any NI contribution'.

see below:

Gross Salary £ 10,600.00 £ 12,000.00 £ 6,000.00 £ 0.00 £ 41,865.00 £ 0.00
Income Tax £ 0.00 £ 280.00 £ 0.00 £ 0.00 £ 6,253.00 £ 0.00
Employee NI £ 304.80 £ 472.80 £ 0.00 £ 0.00 £ 4,056.60 £ 0.00
Employer NI £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 2,657.91 £ 0.00
Corporation Tax Saving £ 2,120.00 £ 2,400.00 £ 1,200.00 £ 0.00 £ 8,904.58 £ 0.00
Net Salary £ 10,295.20 £ 11,247.20 £ 6,000.00 £ 0.00 £ 31,555.40 £ 0.00
Net Salary (per month) £ 857.93 £ 937.27 £ 500.00 £ 0.00 £ 2,629.62 £ 0.00
Total cost/saving (taxes + NI) -£ 1,815.20 -£ 1,647.20 -£ 1,200.00 £ 0.00 £ 4,062.93 £ 0.00

Shareholder One
Shareholding 100.00%
Maximum annual gross dividend
below higher rate threshold £ 31,785.00 £ 30,385.00 £ 36,385.00 £ 42,385.00 £ 520.00 £ 42,385.00

Maximum net dividend £ 28,606.50 £ 27,346.50 £ 32,746.50 £ 38,146.50 £ 468.00 £ 38,146.50
Monthly dividend income £ 2,383.88 £ 2,278.88 £ 2,728.88 £ 3,178.88 £ 39.00 £ 3,178.88
Total monthly income up to higher rate £ 3,241.81 £ 3,216.14 £ 3,228.88 £ 3,178.88 £ 2,668.62 £ 3,178.88

Shareholder Two
Shareholding (calculated) 0.00%
Annual gross dividend(relative to shareholder one)£ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00
Annual net dividend £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00
Monthly dividend income £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00
Salary (optional) £ 0.00 Monthly: £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00 £ 0.00

TOTALS
Total annual income £ 38,901.70 £ 38,593.70 £ 38,746.50 £ 38,146.50 £ 32,023.40 £ 38,146.50
Total monthly income £ 3,241.81 £ 3,216.14 £ 3,228.88 £ 3,178.88 £ 2,668.62 £ 3,178.88

Tax Free Allowance £ 10,600.00
Employer NI Allowance £ 2,000.00 Tax Rate
Employee NI Threshold (per week)£ 155.00 12.00%
Employer NI Threshold (per week)£ 156.00 13.80%
Higher rate threshold £ 31,785.00


from 6/4/15, a contractor operating through his own ltd company who is not a higher rate taxpayer is overall better off taking £671 pm salary (£8052 pa) and can take up to £30,900 net dividends tax free. This way, no NI, PAYE or income tax (on dividend income) is payable. Taking this amount of salary safeguards the entitlement to state benefits even though you don't pay any NI contribution.

Can someone please check if this is correct.

Many Thanks Again.

ab339 wrote: from 6/4/15, a contractor operating through his own ltd company who is not a higher rate taxpayer is overall better off taking £671 pm salary (£8052 pa) and can take up to £30,900 net dividends tax free. This way, no NI, PAYE or income tax (on dividend income) is payable. Taking this amount of salary safeguards the entitlement to state benefits even though you don't pay any NI contribution.

Can someone please check if this is correct.

Many Thanks Again.

You should really be reading up on the welfare reforms with the new income based benefit Universal Credit which replaces several benefits, includung the benefits Child Tax Credit and Working Tax Credits. Claimants will have to report their earnings every month to the DWP and there will be an MIF (minimum income floor).
https://www.gov.uk/government/uploads/s ... june15.pdf
"If you earn less than the minimum income floor in any month, Universal Credit will not
bridge that gap. This will encourage you to grow your business and make sure it can
support you."

Thanking you for your input petaltop.

I will read up on the link you have provided.

Much Appreciated.
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I have read the link. But i don't know if it applies to me as yet because i don't think its rolled out in the region where i am.

ab339 wrote:Thanking you for your input petaltop.

I will read up on the link you have provided.

Much Appreciated.
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I have read the link. But i don't know if it applies to me as yet because i don't think its rolled out in the region where i am.

The welfare reforms, welfare cuts and the annual welfare bill spending cap that starts this tax year, will affect everyone who claims benefits, even those already claiming. This is the planned roll out schedule for UC.
https://www.turn2us.org.uk/Benefit-guid ... out-so-far

How much savings can i use in my possession if i cannot meet the £18,600 per year when applying for 'Further Leave to Remain' & 'Indefinite Leave to Remain'.

I am going to make an application for 'Child Tax Credits' & 'Child Benefit' then make an application for 'Working Tax Credits' in joint name when my wife is here. Am i correct in saying i can apply for the above 3 benefits without Prejudicing my wife's visa apllication for 'Further Leave to Remain', & same for 'Indefinite Leave to Remain', if i am still on these benefits depending on my income for them years. But to clarify I still need to meet the financial requirement whilst claiming any of the above benefits of £18,600 per year & i can make this up from my wage as well as my wife's wage combining the two to meet it.

Can i use our earnings as well as savings to meet the requirements?

Many Thanks for your replies.

I get a question on 'Tax Credits Calculator', am i subject to 'Immigration Control', i am going to say no to this because i am a 'British Citizen'. Is this correct as my wife will be.

ab339 wrote:Can i use our earnings as well as savings to meet the requirements?

You can, but the calculations for savings is more convoluted.

To begin with, you will need savings of more than £16,000. The first £16,000 are not counted.

Then, for every £2.50 in savings, your earnings requirement will reduce by £1.

So, if you had £20,000 in the bank, your earnings requirement would be reduced by £1600 ((£20000-£16000)/2.5).

To meet the entire earnings requirement from savings, you would need savings of £62,500.

ab339 wrote: from 6/4/15, a contractor operating through his own ltd company who is not a higher rate taxpayer is overall better off taking £671 pm salary (£8052 pa) and can take up to £30,900 net dividends tax free. This way, no NI, PAYE or income tax (on dividend income) is payable. Taking this amount of salary safeguards the entitlement to state benefits even though you don't pay any NI contribution.

As I said, watch the budget yesterday: and it has changed the above with the budgets dual aim of catching those who avoid UK taxes and now making the UK's benefits for children less generous than Germany, France and Sweden, asap.

Dividends will be a maximum of 5k only.

From April 2016, those claiming the benefit Child Tax Credits will see a reduction in this benefit of between 1k - 4k a year.

From April 2017 for new claims for the benefit Tax Credits or for those trying to adda an extrta child to their exisiting Tax Credit claim, two childern only will be the maximim Tax Credits the claimant will be given. the same for those who have already been moved onto the new welfare payment Universal Credit that relaces Tax Credit.

When your area is moved onto Universal Credit and it replaces your Tax Credit benefit in the next 2/3 years, the benefit rules change again.