Page 1 of 1

PAYE Requirement for 5 Year ILR

Posted: Wed Aug 12, 2020 2:46 pm
by jubalizer
Hello,

My partner and I arrived in the UK 2 years ago on Ancestry visas. My partner's grandfather was born here and because we have lived together for over two years I qualified to join her in the UK as a dependent and, through her, got my own Ancestry visa. Win!

Since arriving I found work pretty quickly and believe that in 3 years I will be able to apply for ILR. My question is about my partner who is a director of a limited company. My concern is that her salary is approximately £9k per year (for tax efficiency) while the dividends she receives (every six months) are well over £10k per year.

I heard from a friend who recently applied for ILR that there was a requirement that in order to obtain ILR you need to have paid PAYE - this is something my partner does not do has she pays no income tax. She only pays personal (dividends) and corporate tax for her company.

I've looked through the government website and these forums to find something to corroborate my friend but can't find anything.

Are we likely to experience any problems in 3 or 4 years when we apply for ILR? I can confirm that our tax records and self assessments with HMRC are up to date and accurate. I hope that I am a bit concerned about nothing.

Many thanks,
Paul

Re: PAYE Requirement for 5 Year ILR

Posted: Wed Aug 12, 2020 2:59 pm
by CR001
No issues.

The requirement is that your tax affairs must be in order. There is no rules that says it must be PAYE only for Ancestry visa holders. You are free to take up any type of employment.

If you friend applied via a different route, she is likely confusing the rules for different visa categories, such as Tier 2 General for example.

Re: PAYE Requirement for 5 Year ILR

Posted: Wed Aug 12, 2020 3:07 pm
by jubalizer
Hi CR001,

That's really helpful. Thank you for confirming as well as your quick response.

I recall reading some of your advice a few years back when we made our Ancestry visa applications. Your help in part was very useful and saved us a bunch of agent fees (especially considering we were living in China and Korea and had to get everything translated).

Much appreciated!

Kind regards,
Paul

Re: PAYE Requirement for 5 Year ILR

Posted: Wed Aug 12, 2020 3:09 pm
by CR001
Since arriving I found work pretty quickly and believe that in 3 years I will be able to apply for ILR.
Also important to note that you won't qualify for ILR if your partner does not also apply at the same time. If your partners ILR is refused for any reason, your ILR will also be refused.

Re: PAYE Requirement for 5 Year ILR

Posted: Wed Aug 12, 2020 3:11 pm
by jubalizer
Thank you :)