Cash in Hand Income

[samira_uk]

Hi,

I've seen couple of thread related to the refusal of the application as the sponsor's cash incomes were not banked. However, what is the situation for a self-employed person such as taxi driver?

I found it from the Appendix FM 1.7:

Self-employed income can be cash-in-hand if the correct tax is paid. In line with paragraph 3.1.5 of this guidance, it would generally be expected that the person’s business or personal bank statements would fully reflect all gross (pre-tax) cash income. Flexibility may only be applied where the decision-maker is satisfied that the cash income relied upon is fully evidenced by the relevant tax return(s) and the accounts information.

So, in that case cash-in-hand income is acceptable if the proper tax paid and it is reflected in the accounts as the business income but without a bank account proof?

[Laughing-Gas]

You will totally be relying on the judgement of caseworker. If you have not banked the earnings, and want to rely on them for meeting mim, then you will in all likelihood fail. If caseworkers were to accept your story, then everyone will claim to have earned in cash, and then spent it, and after paying some tax, everyone would get the visa. It doesn't work that way.

[samira_uk]

thank you but the guidance says otherwise:

...may only be applied where the decision-maker is satisfied that the cash income relied upon is fully evidenced by the relevant tax return(s) and the accounts information.

it is not that easy, financial accounts are prepared by a chartered accountant and so some checks have been done. In your logic, anyone can bank some money each months as an income and then get the visa.

[Laughing-Gas]

Accounts made by chartered accountant does not mean that any checks have been done. Perhaps you do not know the difference between accounts made by chartered (or any other) accountant, and audited accounts.

And if you are convinced by your own arguments, then why ask on forum? Get on with it and apply and find out the result. Easy Peasy.

[CR001]

In your logic, anyone can bank some money each months as an income and then get the visa.

No they can't as HO expect to see a paper trail of where the cash came from.

There have been many refusals where people thought 'cash in hand' counted or where they only deposited a portion of the cash in hand money.

[samira_uk]

I am asking to know the others opinion. Your reason is for employed people and all of the cases I've found in the forum and all refusals are for employed people and not the self-employed one. The guidance is very clear for both employed (where the cash should be banked) and self-employed (as above). However, I know that HO does not always stick to its own guidance and you will have to follow up through the lengthy and costly appeal.

About the accountants, they don't do the audit but they don't accept anything you said. It seems you have not worked with a proper chartered accountant!

[CR001]

You are mistaken, there are many refusals on the forum from people who are self employed sponsoring their spouses.

HO follow the immigration rules, simple as that. You either meet them or you don't.

Vague insults to members responding who might not have experience working in a particular field might put people off responding to you. If you know everything, then apply and do let us know the outcome.

Good luck.

[samira_uk]

It would be appreciated if you give me an example of these refused self-employed as anyone I've seen so far was employed. Also, if the rules are clear the paragraph I posted above is also very clear and explicitly implies that in the case of correct paid tax amount, flexibility can be given. I just want to be sure about it as I've not seen any similar case.

Above the insult I replied to him/her in a same way s/he replied to me in the first place.

Anyway, if an applicant wants to be on safer side, can he deposit an amount equals to the cash-in-hand income (just 20% of the income is cash-in-hand) to his bank account?

[Laughing-Gas]

About the accountants, they don't do the audit but they don't accept anything you said. It seems you have not worked with a proper chartered accountant!

I suggest you do a bit more of digging. Companies (who are not required to do an audit) regularly get prosecuted for tax evasion, and convictions are a regular occurrence. One thing they all have in common is, they all have chartered accountants.

Correct, I do not work with chartered accountants, because I don't need to. I run my own Ltd company, and more than capable of doing all my income and vat accounts myself.

[Route to ILR]

It would be appreciated if you give me an example of these refused self-employed as anyone I've seen so far was employed. Also, if the rules are clear the paragraph I posted above is also very clear and explicitly implies that in the case of correct paid tax amount, flexibility can be given. I just want to be sure about it as I've not seen any similar case.

Above the insult I replied to him/her in a same way s/he replied to me in the first place.

Anyway, if an applicant wants to be on safer side, can he deposit an amount equals to the cash-in-hand income (just 20% of the income is cash-in-hand) to his bank account?

See this link

http://www.immigrationboards.com/immigr ... 25235.html

[samira_uk]

I forgot to update but the visa in question was granted which shows my understanding of the rules was correct and cash in hand could be used.

[Bobby1]

I forgot to update but the visa in question was granted which shows my understanding of the rules was correct and cash in hand could be used.

I'm in a similar situation, can you advise me? second job income was not banked but all tax paid via employer. It only amounted to £270 after tax and I used that on general expenses, board etc.

[samira_uk]

In my friend's case not all the income was cash and about 25% was in cash. correct tax was paid and accountant explained the situation in their letter. proper documents regarding the genuineness of the income were submitted and the visa was granted. As I said before it is what mentioned clearly in the guidance.

However, i assume it is safer if all income is deposited to the bank account.