Financial requirement for FLR(M) Extension

[Krish19]

Guys,

Have a quick Question around financial requirement. I have become an employee from May 2021, and until may 2021 was a ltd company director and employee.

Im aware that only £18,600 is required for financial requirement.

My question is since i have become employee (may 2021) my gross income is £39,000. Can i just use this salary for my parner FLR (M) extension? or should also use my ltd company accounts for 2019-2020......?

[AmazonianX]

Guys,

Have a quick Question around financial requirement. I have become an employee from May 2021, and until may 2021 was a ltd company director and employee.

Im aware that only £18,600 is required for financial requirement.

My question is since i have become employee (may 2021) my gross income is £39,000. Can i just use this salary for my parner FLR (M) extension? or should also use my ltd company accounts for 2019-2020......?

Keep it simple by..... sticking to using evidence from your employment to meet the requirements.

[TODMATT]

Guys,

Have a quick Question around financial requirement. I have become an employee from May 2021, and until may 2021 was a ltd company director and employee.

Im aware that only £18,600 is required for financial requirement.

My question is since i have become employee (may 2021) my gross income is £39,000. Can i just use this salary for my parner FLR (M) extension? or should also use my ltd company accounts for 2019-2020......?

I agree with AmazonianX that you should not complicate things.

[Korekt]

Doesn't it all depend on when the application is being made?

[TODMATT]

Doesn't it all depend on when the application is being made?

You are right but we are mainly giving the view of the lest complicated route and the OP didn't state when they will apply so if the OP clarifies.

[Krish19]

Planning to apply for extension by End of September. By then i will only have 5 months pay slips. in the guidance they say that i have less than 6 months pay slips then we must show previous employment.

[TODMATT]

Planning to apply for extension by End of September. By then i will only have 5 months pay slips. in the guidance they say that i have less than 6 months pay slips then we must show previous employment.

Are you salaried or un-salaried? How much have you earned in the last 5 months?

[Krish19]

Im salaried employee(Inside ir 35 contract) since may. 5 months pay is more than what is required(£18,600) for financial evidence.

My question is can i just send 5 months payslips and statements.... or my ltd company docs as well?

[TODMATT]

Im salaried employee(Inside ir 35 contract) since may. 5 months pay is more than what is required(£18,600) for financial evidence.

My question is can i just send 5 months payslips and statements.... or my ltd company docs as well?

It would appear that your current income won't be enough to meet the threshold so therefore, you can use your limited company income in the most recent financial year assuming this is still a source of income for you at the moment even though you are still employed?

[Krish19]

Thanks so much for your reply.
My only question is if i had already earned more than £18600 in last 5 months why is that not enough?

If necessary i can use both however for simplicity i was thinking just use my current job which is only 5 months old if i can. My company tax is due in October 2021, hence i will submit accountant letter and last year returns for the application is that enough?

I was taking salary from limited company until March 2021. For the month of April i don't have any pay slip. From May 2021 I'm an employee i have pay slips.

Will submit all below documents for visa
1. Company 2019-2020 returns
2. Accountant letter for 2020-2021 about company status
3. Director appointment report
4. VAT returns for last year
5. My self-assessment for 2019-2020 and draft one for 2020-2021.
6. Company registration and vat registration docs.
7. Bank statements for personal & business.
8. Current job contract, pay slips.
.... i hope this is enough for visa.

Please let me know if i missed anything here.

[TODMATT]

Thanks so much for your reply.
My only question is if i had already earned more than £18600 in last 5 months why is that not enough? It doesn't work like that, if you have earned £18,600 in the last 5 months, it puts you into CAT B depending on if you salaried or unsalaried as per the guidance they are both calculate differently and has two conditions to be met. How much is your annual salary?

If necessary i can use both however for simplicity i was thinking just use my current job which is only 5 months old if i can. My company tax is due in October 2021, hence i will submit accountant letter and last year returns for the application is that enough?

This is also a possibility but it also appears that you must recent financial year is still 19-2020 so this is a good chance for you to use this route if you wish but all options are on the table depending on your circumstances.

I was taking salary from limited company until March 2021. For the month of April i don't have any pay slip. From May 2021 I'm an employee i have pay slips.

Will submit all below documents for visa
1. Company 2019-2020 returns
2. Accountant letter for 2020-2021 about company status
3. Director appointment report
4. VAT returns for last year
5. My self-assessment for 2019-2020 and draft one for 2020-2021.
6. Company registration and vat registration docs.
7. Bank statements for personal & business.
8. Current job contract, pay slips.
.... i hope this is enough for visa.

Please let me know if i missed anything here.

[Krish19]

Let's say im on a fixed contract for £80k for 6 months. Surely this should be fine?

If you don't mind can you, please explain calculation of how they calculate?

I understand that there are 2 steps in CAT B. This is where im not sure how to use it, Because i was self-employed before my current job.

[TODMATT]

Let's say im on a fixed contract for £80k for 6 months. Surely this should be fine?

If you don't mind can you, please explain calculation of how they calculate?

I understand that there are 2 steps in CAT B. This is where im not sure how to use it, Because i was self-employed before my current job.

CAT B has two conditions to be depending on if you are salaried or un-salaried.

Let’s assume you are earning 80K fixed annual salary which is you will fall under CAT B salaried and you have been less than 6 months.

First requirement of CAT B.

Your recent pay would have been £6,666 x 12 = £80,000 which means that you fulfilled first requirement.

Second requirement

It says that, you should have earned £18,600 during 12 months period from the date of the application. If you start working in April -August is 5 months and during this period your monthly pay is £6,666 gross multiply by 5 = £33,330 which means second requirement is also fulfilled because in the last 12 months, you have earn £18,600 or more.

[Krish19]

Thanks a lot for this explanation. So, I can just use these 5 months payslip.... and not mention self-employment at all in the application?

Would that work or to be safer side just mention and send all related documents?

[TODMATT]

Thanks a lot for this explanation. So, I can just use these 5 months payslip.... and not mention self-employment at all in the application?

Would that work or to be safer side just mention and send all related documents?

Yes, you can but you need to spell it out by drafting a cover letter explaining the above as I have done and you won’t need to mention your self employed at all.

[Krish19]

There is this question in the application which i mentioned below, I'm still a director hence i need to mention it and i need to provide all ct600 and other documents. i don't think i have a choice to not to mention.

Question in application below:
Are they a director or non-executive director of a limited company based in the UK?

[TODMATT]

There is this question in the application which i mentioned below, I'm still a director hence i need to mention it and i need to provide all ct600 and other documents. i don't think i have a choice to not to mention.

Question in application below:
Are they a director or non-executive director of a limited company based in the UK?

NO is the answer but if you draft a cover letter that you are a director of a limited company but you do not intend to use that income to meet the requirement.

[Krish19]

Thanks, this will make my application lot easier and simpler.

Do you know anyone had applied similarly? Do you have covering letter template which i can use?

Just want to make sure im doing it right.

Really appreciate your help with this.

[AmazonianX]

Thanks, this will make my application lot easier and simpler.

Do you know anyone had applied similarly? Do you have covering letter template which i can use?

Just want to make sure im doing it right.

Really appreciate your help with this.

There is no standard template for covering letter. It's only truthful statements of facts as it applies to you as further explanation to be given in support of the application.

[TODMATT]

Thanks, this will make my application lot easier and simpler.

Do you know anyone had applied similarly? Do you have covering letter template which i can use?

Just want to make sure im doing it right.

Really appreciate your help with this.

As mentioned above by AmazonianX. There’s no template for cover letters especially since individual circumstances differs in terms of what they want to address. In your case, use the idea of how CAT B is explained above to show how requirement is met and also try to copy the question in the application form to address the issue of you not relying on your director of a limited company income.

[Krish19]

Thanks guys,
With regards to supporting documents for living together.

Here is the list are these enough. Was bit confused after reading what is there in website.
1. Council tax, Water bill is on me and my wife.
2. Me & partner bank statements
3. Phone bill on husband's names
4. Any Nhs letters we have received for wife.
5. Any tax letters
6. DVLA letter for both.
7. Power bills is on husband's name
8. Letter from my gp saying i was registered from last 3 years.
9. Credit cards bills for both husband and wife.

Are these enough or we need anything else?

[AmazonianX]

Thanks guys,
With regards to supporting documents for living together.

Here is the list are these enough. Was bit confused after reading what is there in website.
1. Council tax, Water bill is on me and my wife.
2. Me & partner bank statements
3. Phone bill on husband's names
4. Any Nhs letters we have received for wife.
5. Any tax letters
6. DVLA letter for both.
7. Power bills is on husband's name
8. Letter from my gp saying i was registered from last 3 years.
9. Credit cards bills for both husband and wife.

Are these enough or we need anything else?

They must be evenly spread 3-4 months to cover the past 2 years

[Krish19]

Sorry Guys, This is bugging me. below is my example pay details. Each month i get variable amount from my employer. Just checking its still fine under category b? I only need £18,600 to satisfy this requirement.

Net(£) Gross(£)
September 21
August 21
July 21 13,399.03 22,500.00
June 21 4,446.65 10,500.00
May 21 3,584.25 6,000.00

Total 21,429.93 39,000.00

[TODMATT]

Sorry Guys, This is bugging me. below is my example pay details. Each month i get variable amount from my employer. Just checking its still fine under category b? I only need £18,600 to satisfy this requirement.

Net(£) Gross(£)
September 21
August 21
July 21 13,399.03 22,500.00
June 21 4,446.65 10,500.00
May 21 3,584.25 6,000.00

Total 21,429.93 39,000.00

It seems you are a high earner and from the payslips above, you will meet the requirement of CAT B non salaried. It is your gross income that is count towards the threshold. Just explain in a cover letter and please read the above explanations.

[Krish19]

Thanks, On application there is nothing to select as "non salaried" employee. should i select salaried employee or not?