Company Owner & Director: Appendix FM-SE

[helpplease!]

Hi Guys,

I am a British Citizen. My wife is a Turkish National on a 33 month UK Residence Permit (Spouse). When we come to extend the leave using FLR(M), we will of course be required to provide Evidence of Financial Requirements under Appendix FM.

When we first applied for the Spouse Permit back in mid 2016, my situation was different and I was a "regular" employee, so we followed paragraph 2 of the Appendix and simply provided my payslips, a letter from my employer and my personal bank statements. Now, I own a UK private limited Company since August 2017, I am the sole director and sole shareholder (1 share), and my position in the company is Managing Director. I do not take any dividends, just a regular monthly PAYE salary which exceeds the current threshold. My wife also works for my company but as a part time office assistant, and she does not meet the threshold, so I will be the one who provides the financial evidence.

After reading the Appendix FM once again (Appendix FM), I'm not sure if I fall into the category at paragraph 9 therein;

"9. In respect of income from employment and/or shares in a limited company based in the UK of a type specified in paragraph 9(a), the requirements of paragraph 9(b)-(e) shall apply in place of the requirements of paragraphs 2 and 10(b).
(a) The specified type of limited company is one in which:
(i) the person is either a director or employee of the company, or both, or of another company within the same group; and
(ii) shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and
(iii) ...."

If I do fall into paragraph 9, it seems I will have to provide a HUGE list of company documents as set out in paragraph 9(b)-(e)? Most of these documents are required to cover a 12 month period, including tax returns, companies house documents, audited accounts, business bank statements, proof of VAT registration, proof of lease or ownership of premises, HMRC PAYE proof, etc, etc.

I just want some advice or confirmation on which paragraph I ought to follow, as although I am a Director and sole shareholder of a UK Limited Company, I am simply on a usual PAYE salaried wage? So do I follow paragraph 2 and just provide payslips, personal bank statements and a letter of confirmation of employment from my accountant or must I follow paragraph 9 and provide all the company documents?

Any advice will be great!

[arizoo]

i'm in the exact same situation as you however, after speaking to my lawyer they have suggested that I resign as director and simply become an employee in the company (not a sole director).
I was told that by doing this I would then work for 6 months as an employee then go down the normal application route rather than complicating the process...

If you find out any more information on this please let me know!

[helpplease!]

Resign as director and become an employee in the company? I am surprised that you have received such advice but I can completely understand because paragraph 9 of Appendix FM-SE sets out MANY documents to be provided as Directors. I am confident that I can gather the documents but this would mean putting my faith in the HMRC to provide the documents on time, in the correct format, etc, and that is something I fear. It surely would be "easier" and less complicated as an employee.

One alternative for me would be to increase my wife's salary so that it meets/exceeds the threshold. She can then rely on her own financial evidence as an employee rather than mine as a Director. HOWEVER, I wonder what the complications would be when she provides a letter from her employer and that letter would be from her husband as Managing Director?! I am not sure if there are any provisions of the Spouse supplying the Evidence for Financial Requirement when she is working at her husbands business?

Rather than opening a new thread, if anyone could assist me with my alternative option above (Financial documents required by a Spouse who works in a company solely owned by her Husband) it would be greatly appreciated.

Thanks!

[helpplease!]

I have decided to increase my wifes salary so that it meets/exceeds the threshold, in a hope this will save the hassle of providing the company documents at paragraph 9 of Appendix FM.

Can anybody advise on which Financial Documents are required by a Spouse who works in a company solely owned by her husband? Should she follow paragraph 2 or paragraph 9 of Appendix FM? If paragraph 2, inregards to the confirmation letter from her employer - who should write this letter? I, as Managing Director, would usually write such letter but I am her husband, will my name on the bottom of the letter cause issue?

Appendix FM paragraph 2.b states

"2. In respect of salaried employment in the UK (except where paragraph 9 applies), all of the following evidence must be provided:
..
(b) A letter from the employer(s) who issued the payslips at paragraph 2(a) confirming:
..
"

So it has to be the employer (my company) who issued the payslips, it cannot be from our companies accountant? Or can it be from another member of management of my company - e.g. Commercial Director?

Does the fact I own the business need to be mentioned at all? - "normal" applications which require 6 months payslips, bank statements and a confirmation letter from your employer wouldn't necessarily reveal the owner of such company - so is there need to state I own such company if it is going to be an issue? Would this be considered deceitful when company documents are publicly available in the UK?

[Obie]

If there is evidence that the employment is contrived to meet the financial, thar could result in refusal.

[helpplease!]

Of course, but my wife is an actual office assistant at my company. She was part time (worked Tuesday and Thursdays only), but from 1 May 2018 she will be full time, Monday-Friday and so her hours have increased meaning she exceeds the threshold. I am not sure how there would be evidence that the employment is contrived and I am not sure how she could produce evidence that it is not contrived?

My concern is should she follow paragraph 2 or paragraph 9 of Appendix FM, purely because the company employing her is her husbands company? And in this circumstance who should write her confirmation of employment letter?

[helpplease!]

Any help guys?

Been trying to find similar threads in relation to Paragraphs 2 and 9 of Appendix FM but am struggling.

It really is a question of paragraph 2 -v- paragraph 9 when a Spouse is an salaried employee of her husbands business.

[helpplease!]

Hi Guys

My last attempt at trying to find out should my wife follow paragraph 2 or paragraph 9 of Appendix FM, purely because the company employing her is her husbands company? And in this circumstance who should write her confirmation of employment letter, etc?

[helpplease!]

Any help guys?

[Aliraza12]

Hi
You only need to provide pay slip
Bank statement required period of 6 month
Company tax return for 12 month
last year accounts if more then 3 month passed when you submitted last accounts so then management account in safe side
Your self tax return
Ct 600
You write a letter as an employer of yourself
Accountant letter
Don’t need to worry about it they can check your business activity through company house
You be fine
Get salaries from your company and applied after 6 month if you complete for finically threshold criteria
Regards

[Aliraza12]

Hi
Did you find any information regarding your wife visa ??