Fiance visa and self employed

[DannyT]

As I am self-employed, and I understand that the threshold has to be above 18,600 GBP.

Even that the directors salary (effectively my salary) has to be 18,600

OR, could the salary be 10,000 and then the remainder be taken from dividends to make up the 18,600.

I know will make above the threshold, but will it affect me if I took a salary of only 10,000?

Thanks

[Obie]

It will all depends on what is reflected on your tax return as gross earning.

18600 or above will need to be shown in the financial year preceding the application or the average earning of the last two financial years should meet that threshold

[Casa]

If you are director of a Limited company you are not self-employed. You are an employee of the company even if you are the sole director.

[MPH80]

If you are director of a Limited company you are not self-employed. You are an employee of the company even if you are the sole director.

Except - hold on a second - because if you're the sole director of the company and/or also one of few shareholders then you are required to submit the documentation as though you are self-employed.

It's for precisely this reason - someone who is the sole director/share holder in a company can manipulate the company finances to make them look like they are earning more than they are actually earning (e.g. they plunder the company accounts for a year).

So - our OP here - assuming he is the sole director or one of few shareholders - will need to submit the data from his last financial year and provide the breakdown of his salary and/or dividends.

So you can make up the salary with dividends - but it has to be last year's finances.

[DannyT]

I am the sole director of the Ltd company

I haven't fully decided what route to take (Umbrella vs Ltd), (been working for 4 weeks now, but still haven't decided on how i will get paid, options above). In over 6 months time we'll be applying for the VISA. However, if I am the director of the Ltd, I won't have;

9.1. Category F: Last full financial year
9.2. Category G: Average of last two full financial years

Because the company has only just been created (Aug 2014), therefore wouldn't be able to prove the above

If I was to take the umbrella route, it would show that I have been working for 6 months with a salary higher than 18,600 and thus (I naively assume) be no issue?

[Obie]

Provided their is a genuine paye and income is been received over a 6 months period, then you will be fine.

It could also be less that six months, provided you can show that over a 12 months period, you have earned the average earning, and your current salary meets the requirement.

[DannyT]

Well I guess that answers my question.. luckily I was about to hand all the documentation over tomorrow to complete business bank account (limited company has already opened).

I'll take the paye route to ensure that i'll have meet the requirements in 6 months time ... thank you

[MPH80]

Good choice - the limited company thing still has pressures on IR35 which an umbrella company really helps mitigate.

[DannyT]

I checked IR35, I shouldn't have been in that category, but possibly too close to call. I'm still only young and it's not worth the hassle for a few more bucks.