URGENT advice needed on financial requirement as sub-contractor under Construction Industry Scheme

wra2103 · Post by **wra2103** » Sun Mar 15, 2020 9:06 pm

Hi all,

I am looking at sponsoring for a Category B application, my wife and I are both currently living in the U.K.

My situation is that I have been working in my current job for 5 months, and i have been offered my dream job but they are wanting a near immediate start. I believe that my option is either wait for another month in my current job and apply as Cat. A then change jobs. Or start my new job and apply as Cat. B. I understand that I will then have to prove my new income will be >£18,600 and that my last 12 months income was also >£18,600. The new job should put me on about £28k-ish so my new income won't be an issue.

This is where i am after some clarification. Last year I worked in Spain for a Dutch company and earned about €14,500. This money was paid from the Netherlands straight into my New Zealand bank account. I am able to prove all of this. Is this an acceptable way to prove my finances? I have earned the remainder of the £18,600 in the UK over the last 5 or so months.

1- can anyone tell me if this will work or not?/ any holes in my plan?
2- will the countries i worked in/got paid to be an issue?
3- am i correct in assuming the exchange rate is applied from the date of application?
4- is my current plan A, the cat. A route and change job after my application solid?
5- what are the pros & cons of the 2 different routes in my situation

Any other advice, comments and questions are much appreciated!!!

wra2103 · Post by **wra2103** » Sun Mar 15, 2020 9:17 pm

Also does there need to be proof of the tax paid on the spain/netherlands income?

seagul · Post by **seagul** » Sun Mar 15, 2020 9:20 pm

Is your wife working? If so then since when and how much is she earning?

wra2103 · Post by **wra2103** » Sun Mar 15, 2020 9:27 pm

She is working, not for the full 6 months though and possibly not at the required threshold, however I haven't fully looked into it as I am assuming we will be ok just to use my income

wra2103 · Post by **wra2103** » Sun Mar 15, 2020 9:27 pm

seagul wrote: ↑
Sun Mar 15, 2020 9:20 pm
Is your wife working? If so then since when and how much is she earning?

She is working, not for the full 6 months though and possibly not at the required threshold, however I haven't fully looked into it as I am assuming we will be ok just to use my income

seagul · Post by **seagul** » Sun Mar 15, 2020 9:40 pm

Following is the official quote from the guidance Appendix FM 1.7 where it is not clear that whether the UK income can be combined with overseas income under category B although there was one successful case.

5.4.4. So, under Category B, the assessment of the financial requirement will be based on both:

(1) The gross annual salary or income of the applicant’s partner’s confirmed offer of
salaried or non-salaried employment in the UK. This source can be combined with
Category C: non-employment income, Category D: cash savings and Category E:
pension; and
(2) The actual amount of gross income received from the applicant’s partner’s salaried
or non-salaried employment overseas in the 12 months prior to the date of
application. This can be combined with the actual gross income the couple received
from Category C: non-employment income and Category E: pension over the same
12-month period. Category D: cash savings cannot be used under (2).

seagul · Post by **seagul** » Sun Mar 15, 2020 10:05 pm

5.3.9. Second, the person must in addition have received in the 12 months prior to the date
of application the level of income required to meet the financial requirement, based on:
• The gross amount of salaried or non-salaried employment income of the applicant’s
partner (in the UK or overseas) and/or the applicant (if they are in the UK with
permission to work);
• The gross amount of any specified non-employment income received by the
applicant’s partner, the applicant or both jointly, provided they continue to own the
relevant asset (e.g. property, interest from shares) at the date of application; and/or
• The gross amount of any State (UK or foreign), occupational or private pension
received by the applicant’s partner or the applicant.
5.3.10. So, under Category B, the assessment of the financial requirement is based on both:
(1) The gross annual salary or income from salaried or non-salaried employment at the
date of application. This source can be combined with Category C: non-employment
income , Category D: cash savings and Category E: pension; and
(2) The actual amount of gross income received from any salaried or non-salaried
employment in the 12 months prior to the application. This can be combined with the
actual gross income received from Category C: non-employment income and
Category E: pension over the same 12-month period. Category D: cash savings
cannot be used under (2).

wra2103 · Post by **wra2103** » Sun Mar 15, 2020 10:19 pm

seagul wrote: ↑
Sun Mar 15, 2020 10:05 pm

5.3.9. Second, the person must in addition have received in the 12 months prior to the date
of application the level of income required to meet the financial requirement, based on:
• The gross amount of salaried or non-salaried employment income of the applicant’s
partner (in the UK or overseas) and/or the applicant (if they are in the UK with
permission to work);
• The gross amount of any specified non-employment income received by the
applicant’s partner, the applicant or both jointly, provided they continue to own the
relevant asset (e.g. property, interest from shares) at the date of application; and/or
• The gross amount of any State (UK or foreign), occupational or private pension
received by the applicant’s partner or the applicant.
5.3.10. So, under Category B, the assessment of the financial requirement is based on both:
(1) The gross annual salary or income from salaried or non-salaried employment at the
date of application. This source can be combined with Category C: non-employment
income , Category D: cash savings and Category E: pension; and
(2) The actual amount of gross income received from any salaried or non-salaried
employment in the 12 months prior to the application. This can be combined with the
actual gross income received from Category C: non-employment income and
Category E: pension over the same 12-month period. Category D: cash savings
cannot be used under (2).

So going off your second reply it shouldn’t be an issue? If I went ahead would I need to provide the guidelines you have quoted?

seagul · Post by **seagul** » Sun Mar 15, 2020 10:26 pm

wra2103 wrote: ↑
Sun Mar 15, 2020 10:19 pm

seagul wrote: ↑
Sun Mar 15, 2020 10:05 pm

5.3.9. Second, the person must in addition have received in the 12 months prior to the date
of application the level of income required to meet the financial requirement, based on:
• The gross amount of salaried or non-salaried employment income of the applicant’s
partner (in the UK or overseas) and/or the applicant (if they are in the UK with
permission to work);
• The gross amount of any specified non-employment income received by the
applicant’s partner, the applicant or both jointly, provided they continue to own the
relevant asset (e.g. property, interest from shares) at the date of application; and/or
• The gross amount of any State (UK or foreign), occupational or private pension
received by the applicant’s partner or the applicant.
5.3.10. So, under Category B, the assessment of the financial requirement is based on both:
(1) The gross annual salary or income from salaried or non-salaried employment at the
date of application. This source can be combined with Category C: non-employment
income , Category D: cash savings and Category E: pension; and
(2) The actual amount of gross income received from any salaried or non-salaried
employment in the 12 months prior to the application. This can be combined with the
actual gross income received from Category C: non-employment income and
Category E: pension over the same 12-month period. Category D: cash savings
cannot be used under (2).

So going off your second reply it shouldn’t be an issue? If I went ahead would I need to provide the guidelines you have quoted?

No need but if you wishes then in covering letter you can provide this quote. I have seen one successful experience in similar scenario. In my opinion in same covering letter you can also provide the calculations as you are meeting the requirement so that no error/mistake occur from caseworker.

***Due to cronovirus many things are delaying and if by chance if your new job offer gets delayed too then simply complete your 6th month with present employer and apply straight under category A***

wra2103 · Post by **wra2103** » Sun Mar 29, 2020 5:31 pm

Hi all I have a few questions:

1.) if my spouse applies to have her tier 5 visa extended until 31 May, (it is currently 18 April), will it be an issue to apply for the visa after her original visa expires or is it better to just do it before 18 April?

2.) Our tenancy agreement has been sent to us with the landlords signature scanned onto it. If we sign the copy can we use this as evidence and use this for our application or de we need an original? He doesn't want to come to our house due to the pandemic and it is hard for us to get to an open printing shop to print the documents in the first place to get an original signature on the contract.

3.) We live in a share house with 3 others. We have a double room and the property is definitely not overcrowded. We have doubts that we will be able to get a chartered surveyor or person from the council in to carry out a property report for us. Is this an issue? How do we get around this?

4.) Do my payslips & letter from employer need to be originals or can I have them emailed then printed?

5.) Are there going to be any allowances made/ any flexibility towards us applicants in the application process due to the current situation. Is the process expected to take longer?

TIA!!

seagul · Post by **seagul** » Sun Mar 29, 2020 6:59 pm

wra2103 wrote: ↑
Sun Mar 29, 2020 5:31 pm
Hi all I have a few questions:

1.) if my spouse applies to have her tier 5 visa extended until 31 May, (it is currently 18 April), will it be an issue to apply for the visa after her original visa expires or is it better to just do it before 18 April?

2.) Our tenancy agreement has been sent to us with the landlords signature scanned onto it. If we sign the copy can we use this as evidence and use this for our application or de we need an original? He doesn't want to come to our house due to the pandemic and it is hard for us to get to an open printing shop to print the documents in the first place to get an original signature on the contract.

3.) We live in a share house with 3 others. We have a double room and the property is definitely not overcrowded. We have doubts that we will be able to get a chartered surveyor or person from the council in to carry out a property report for us. Is this an issue? How do we get around this?

4.) Do my payslips & letter from employer need to be originals or can I have them emailed then printed?

5.) Are there going to be any allowances made/ any flexibility towards us applicants in the application process due to the current situation. Is the process expected to take longer?

TIA!!

1. In my view the new announcement where those applicants/visa holders who can't leave the UK got auto extension might not apply here because you already have the option to switch into other category without leaving the UK. Therefore, better to apply in timely.

2. Digital copy should be fine and you will need noc letter from the landlord if the tenancy agreement is not joint named.

3. It can be done by any reasonably established letting agent.

4. Online copies should be fine provided are on company stationary

5. At the moment there isn't anything much being offered but there might be something more in near future. But delays are definitely imminent.

wra2103 · Post by **wra2103** » Tue Mar 31, 2020 7:26 pm

seagul wrote: ↑
Sun Mar 29, 2020 6:59 pm

wra2103 wrote: ↑
Sun Mar 29, 2020 5:31 pm
Hi all I have a few questions:

1.) if my spouse applies to have her tier 5 visa extended until 31 May, (it is currently 18 April), will it be an issue to apply for the visa after her original visa expires or is it better to just do it before 18 April?

2.) Our tenancy agreement has been sent to us with the landlords signature scanned onto it. If we sign the copy can we use this as evidence and use this for our application or de we need an original? He doesn't want to come to our house due to the pandemic and it is hard for us to get to an open printing shop to print the documents in the first place to get an original signature on the contract.

3.) We live in a share house with 3 others. We have a double room and the property is definitely not overcrowded. We have doubts that we will be able to get a chartered surveyor or person from the council in to carry out a property report for us. Is this an issue? How do we get around this?

4.) Do my payslips & letter from employer need to be originals or can I have them emailed then printed?

5.) Are there going to be any allowances made/ any flexibility towards us applicants in the application process due to the current situation. Is the process expected to take longer?

TIA!!
1. In my view the new announcement where those applicants/visa holders who can't leave the UK got auto extension might not apply here because you already have the option to switch into other category without leaving the UK. Therefore, better to apply in timely.

2. Digital copy should be fine and you will need noc letter from the landlord if the tenancy agreement is not joint named.

3. It can be done by any reasonably established letting agent.

4. Online copies should be fine provided are on company stationary

5. At the moment there isn't anything much being offered but there might be something more in near future. But delays are definitely imminent.

Is a digital copy of the tenancy agreement ok aswell?

seagul · Post by **seagul** » Tue Mar 31, 2020 7:32 pm

seagul wrote: ↑
Sun Mar 29, 2020 6:59 pm
.

2. Digital copy should be fine

wra2103 · Post by **wra2103** » Wed Apr 01, 2020 7:56 pm

Hi,
Im classed as a self employed sub contractor under the CIS system. Do i apply under employed or self employed income? I have read the following:
17A. Where a person is a subcontractor under the Construction Industry Scheme administered by HMRC and does not rely on paragraph 13(e), the income they receive as a subcontractor under the Construction Industry Scheme may be treated as income from salaried employment for the purposes of this Appendix and Appendix FM. In that case, the requirements for specified evidence in paragraph 2 must be met, subject to applying those requirements so as to reflect the person’s status as a subcontractor under the Construction Industry Scheme
Also when it asks:
What is their annual income before tax for this employment in GBP (£)?
I have only worked for 6 months, do I calculate my income as if I had worked 12 months or do I just use my real income for this period? I have read all about calculating income i am just unsure if this is where i extrapolate my income or if it is further through the process.
If I just use my real income, do I then say that I have earnt under the required amount as I am combining it with my wifes income to reach the threshold.
I am finding the wording of some of the questions quite confusing lol
Thanks!!

sohail111 · Post by **sohail111** » Wed Apr 01, 2020 8:26 pm

Are you an IT subs contractor if do then self employed income and you put down your salary before tax including dividends. You also need a full tax year to submit

wra2103 · Post by **wra2103** » Thu Apr 02, 2020 11:30 am

sohail111 wrote: ↑
Wed Apr 01, 2020 8:26 pm
Are you an IT subs contractor if do then self employed income and you put down your salary before tax including dividends. You also need a full tax year to submit

I am a sub contractor in construction under the Construction Industry Scheme (CIS). I believe that below states that because of this my income isn't calculated how it would be if I was a normal sub contractor. So therefore I apply under the normal employment category? Am I correct?

17A. Where a person is a subcontractor under the Construction Industry Scheme administered by HMRC and does not rely on paragraph 13(e), the income they receive as a subcontractor under the Construction Industry Scheme may be treated as income from salaried employment for the purposes of this Appendix and Appendix FM. In that case, the requirements for specified evidence in paragraph 2 must be met, subject to applying those requirements so as to reflect the person’s status as a subcontractor under the Construction Industry Scheme

wra2103 · Post by **wra2103** » Sat Apr 04, 2020 10:20 am

Hi all,
I am needing to submit my wifes application by the 18th of this month.
For my job I work as a labourer for a construction company, I am paid every two weeks and receive payslips. I have just realised that I am considered a subcontractor and therefore self employed. I have looked at all the information required in order for my income to count towards meeting the threshold and if I am self employed it is far more information than I have. I have just submitted my tax return for the financial year ending 31st of march, my income as I have only been working since October is roughly £9,500, which added with my wifes income is about £10,000 for the year so we meet the income requirement, I am just worried that my income won't be counted as all I can supply is my UTR number proving I am CIS registered, my payslips and a letter from my employer and a letter from the payroll company. I haven't registered myself as a sole trader or anything like that as I didn't realise I was classified as self employed.
Also my wife has applied to extend her visa to 31st of May which is possible due to COVID19 which as a last resort I am thinking of delaying the application date until later if it is completely necessary.
I have seen this paragraph in which explains the situation for sub contractors under CIS:

17A. Where a person is a subcontractor under the Construction Industry Scheme administered by HMRC and does not rely on paragraph 13(e), the income they receive as a subcontractor under the Construction Industry Scheme may be treated as income from salaried employment for the purposes of this Appendix and Appendix FM. In that case, the requirements for specified evidence in paragraph 2 must be met, subject to applying those requirements so as to reflect the person’s status as a subcontractor under the Construction Industry Scheme

1. Does this mean that I am ok to just supply the information that a person that is in normal employment has to supply?

2. If so, in the application do I apply under the employed category?

3. If not, what information do I actually have to supply?

4. Should I be worried about the 2 week time frame of organising my other self employed info/requirements?

5. Can I apply without having the evidence of the business e.g company tax returns and profit and loss accounts, with their application as long as I get it and upload it before the interview?

6. How bad of an idea is it to apply after her visa has expire (18th), but before 31st of May?

7. basically I would like to know if I'm in the sh*t and if so, how much I'm in the sh*t.

Thanks in advance!

CR001 · Post by **CR001** » Sat Apr 04, 2020 10:26 am

Topics merged. Please do not start new topics, stick to one thread!!

announcements/multiple-posts-will-be-lo ... t5722.html

seagul · Post by **seagul** » Sat Apr 04, 2020 12:44 pm

If you are working for a contractor whose business is in compliance of HMRC regulated CIS scheme where they (contractor) when paying you then deduct the tax & national insurance contribution and in that case you can fall under salaried employment. For this purpose you will have to supply CIS payment slips in place of payslips, letter from contractor in place of employer letter and the bank statements. However, if these evidences as mentioned above aren't available then you will have to meet the requirement through self employment where an extended amount of documents are needed.

wra2103 · Post by **wra2103** » Sat Apr 04, 2020 1:41 pm

Property report: Im just going through the visa application. I live in a shared house and I need a property report proving that it isn't over crowded. Does anyone know what the story is with this with the COVID19 as it isn't possible to get someone in at the moment. Do you guys think it will still be required?

wra2103 · Post by **wra2103** » Sat Apr 04, 2020 1:42 pm

seagul wrote: ↑
Sat Apr 04, 2020 12:44 pm
If you are working for a contractor whose business is in compliance of HMRC regulated CIS scheme where they (contractor) when paying you then deduct the tax & national insurance contribution and in that case you can fall under salaried employment. For this purpose you will have to supply CIS payment slips in place of payslips, letter from contractor in place of employer letter and the bank statements. However, if these evidences as mentioned above aren't available then you will have to meet the requirement through self employment where an extended amount of documents are needed.

Thanks!

wra2103 · Post by **wra2103** » Wed Apr 15, 2020 6:26 pm

Hi all,

Getting close to the point where we submit our application.

1: I am starting a new job on the 20th, the latest I can submit the application is the 18th. Is it possible to update the information in the financial section after I have submitted as I can't find a way to include my new job until the 20/04

In the 'Declarations' section, I also have a few questions:

2: Declaration 1: third party consent for joint bank account.
My wife (the applicant) and I have a joint bank account. Do I have to fill out this declaration as we are using it as relationship evidence?

3: Declaration 2: third party consent for anyone providing financial support.
We are both combining our income to meet the financial requirement as the sponsor do I need to fill out this declaration or is it for people who have extended family / friends providing financial support?

4: At this stage I have worked for current company more than 6 months, however 3 days after we submit, I am changing jobs to a job paying circa £10,000 above the financial requirement. Do I apply as Cat. A and Change to Cat. B after the 20/04? Or do I apply as Cat. A and leave it as such. Is this possible to change the category after submission? Please advise.

Thanks in advance!

seagul · Post by **seagul** » Wed Apr 15, 2020 9:03 pm

wra2103 wrote: ↑
Wed Apr 15, 2020 6:26 pm
Hi all,

Getting close to the point where we submit our application.

1: I am starting a new job on the 20th, the latest I can submit the application is the 18th. Is it possible to update the information in the financial section after I have submitted as I can't find a way to include my new job until the 20/04

In the 'Declarations' section, I also have a few questions:

2: Declaration 1: third party consent for joint bank account.
My wife (the applicant) and I have a joint bank account. Do I have to fill out this declaration as we are using it as relationship evidence?

3: Declaration 2: third party consent for anyone providing financial support.
We are both combining our income to meet the financial requirement as the sponsor do I need to fill out this declaration or is it for people who have extended family / friends providing financial support?

4: At this stage I have worked for current company more than 6 months, however 3 days after we submit, I am changing jobs to a job paying circa £10,000 above the financial requirement. Do I apply as Cat. A and Change to Cat. B after the 20/04? Or do I apply as Cat. A and leave it as such. Is this possible to change the category after submission? Please advise.

Thanks in advance!

1. Normally anything dated/started/occurred after the date of application isn't considered.

2. I think yes

3. Third party support isn't considered and if you aren't getting then leave it blank or by saying n/a

4. Just rely on that income which you have earned until you plan to submit your application to make the process easier unless you wait and apply under category B. Also ukvi caseworker might contact your employer.

wra2103 · Post by **wra2103** » Sat Apr 18, 2020 1:23 pm

seagul wrote: ↑
Wed Apr 15, 2020 9:03 pm

wra2103 wrote: ↑
Wed Apr 15, 2020 6:26 pm
Hi all,

Getting close to the point where we submit our application.

1: I am starting a new job on the 20th, the latest I can submit the application is the 18th. Is it possible to update the information in the financial section after I have submitted as I can't find a way to include my new job until the 20/04

In the 'Declarations' section, I also have a few questions:

2: Declaration 1: third party consent for joint bank account.
My wife (the applicant) and I have a joint bank account. Do I have to fill out this declaration as we are using it as relationship evidence?

3: Declaration 2: third party consent for anyone providing financial support.
We are both combining our income to meet the financial requirement as the sponsor do I need to fill out this declaration or is it for people who have extended family / friends providing financial support?

4: At this stage I have worked for current company more than 6 months, however 3 days after we submit, I am changing jobs to a job paying circa £10,000 above the financial requirement. Do I apply as Cat. A and Change to Cat. B after the 20/04? Or do I apply as Cat. A and leave it as such. Is this possible to change the category after submission? Please advise.

Thanks in advance!

1. Normally anything dated/started/occurred after the date of application isn't considered.

2. I think yes

3. Third party support isn't considered and if you aren't getting then leave it blank or by saying n/a

4. Just rely on that income which you have earned until you plan to submit your application to make the process easier unless you wait and apply under category B. Also ukvi caseworker might contact your employer.

If my letter from my employer is dated after the application date is it an issue?
Also will it matter if they contact my employer and i'm no longer working there?

seagul · Post by **seagul** » Sat Apr 18, 2020 1:40 pm

wra2103 wrote: ↑
Sat Apr 18, 2020 1:23 pm

If my letter from my employer is dated after the application date is it an issue?

It shouldn't be dated after the date of application

wra2103 wrote: ↑
Sat Apr 18, 2020 1:23 pm
Also will it matter if they contact my employer and i'm no longer working there?

Yes it may affect.

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