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CIS income for Spouse visa - salaried and non-salaried categories

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Tanlight
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Joined: Tue May 07, 2024 11:26 am
United Kingdom

CIS income for Spouse visa - salaried and non-salaried categories

Post by Tanlight » Tue May 07, 2024 12:44 pm

Dear Forum Members,

I am about to submit a Spouse Visa Application, but need help with salaried and non-salaried categories.
I am a subcontractor working under the Construction Industry Scheme for the last 7 months. According to the guidance I can count my income as from salaried employment, category A:

“A person working as a subcontractor under the Construction Industry Scheme (CIS), administered by HMRC (and under which the contractor deducts tax and National Insurance contributions from the payments made to the subcontractor), can, as an alternative to meeting the requirements of Appendix FM-SE in respect of self-employment, choose instead to count their CIS income as income from salaried employment. If they do, they must meet the requirements of paragraph 2 of Appendix FM-SE for specified evidence for salaried employment, subject to reflecting their status as a CIS contractor rather than an employed person. They must provide CIS payment slips in place of payslips, a letter from the CIS contractor in place of an employer’s letter and the required personal bank statements. If a person cannot provide this evidence, or it is not clear that they are covered by the CIS scheme, their income should be treated as income from self-employment and the relevant self-employment evidence must be provided. See Self-employment or Director or employee of a specified limited company in the UK section of this guidance.”

I have subcontractor payslips covering the period from October 2023-April 2024 reflecting monthly CIS deductions and payments as specified in the guidance.
However, I receive payments to the bank account weekly and the amounts are not fixed. Hence, according to the rules my income category falls into non-salaried employment:

“Non-salaried employment includes that paid at an hourly or other rate (and the number and/or pattern of hours required to be worked may vary) or paid an amount which varies according to the work undertaken. Salaried employment includes that paid at a minimum fixed rate (usually annual) which is usually subject to a contractual minimum number of hours to be worked”.

My question is what are the correct calculations of my income.
I can request the letter from my contractor to specify that my daily rate is £150 (before tax). Then the rest should be calculated as non-salaried income for extra hours?

Or should I calculate gross from my 6 months payslips which are:
April 2024 - £2634.00
March 2024 - £2030.00
February 2024 – £4005.00
January 2024 – £4900.00
December 2023 - £2068.00
November 2023 - £2123.00

Or calculation should be made according to weekly income that are reflected on my bank statements.

The problem is that using calculations for salaried and non-salaried income make my gross annual income calculations different because of different formulas being used according to the guidance:

Where the person is in salaried employment – they must have been paid throughout the period of 6 months prior to the date of application at a level of gross annual salary which equals or exceeds the level relied upon in the application. Therefore, the figure used towards the requirement will be the lowest level of annual salary received during the 6-month period.

Where the person is in non-salaried employment – the level of gross annual employment income relied upon in the application will be the annual equivalent of the person’s average gross monthly income from non-salaried employment in the 6 months prior to the date of application (where that employment was held throughout that period).

Your help and previous experience of the forum members would be greatly appreciated.
Many thanks

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