Unemployed income

[rubarb]

Hi

I have to houses i rent out in the uk and want to use them for a settlement visa

Im just asking if they take the full rent into account before tax deductions or after deductions

Thanks for your help

 

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[theoldgit]

As I understand the requirement the gross amount of the rental income can by used unless the supporting bank statements show the income after tax. Also read 6.5.1 which details the specific evidence required.
I have to stress that this is only my opinion, I'm not really up to speed on property rental income.

6.1.5 - The gross amount of any cash income may be counted towards the financial requirement, where the correct tax has been paid on that income and where all the relevant evidential requirements in Appendix FM-SE are met. Where a person’s relevant specified evidence relating to permitted sources of non-employment income shows their gross cash income and the tax paid, and their specified bank statements in relation to the permitted non-employment income show all of that post-tax income, they can count the gross amount of the cash income shown on the specified documentation towards the financial requirement (or the net income in relation to dividends). But, where that person’s specified bank statements relating to permitted non-employment income only show a proportion of that post-tax income, only the amount shown on the bank statements can be counted towards the financial requirement.

Appendix_FM_1_7_Financial_Requirement_Final.pdf

[rubarb]

As I understand the requirement the gross amount of the rental income can by used unless the supporting bank statements show the income after tax. Also read 6.5.1 which details the specific evidence required.
I have to stress that this is only my opinion, I'm not really up to speed on property rental income.


Appendix_FM_1_7_Financial_Requirement_Final.pdf

Thanks theoldgit
Can you tell me also if all i need is a 12 bank statements or do i need a bank certificate from the bank stating its my bank and how long i have had the bank account. I have not heard of this before but have been told i need it as part of my application

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[rubarb]

Thanks theoldgit
Can you tell me also if all i need is a 12 bank statements or do i need a bank certificate from the bank stating its my bank and how long i have had the bank account. I have not heard of this before but have been told i need it as part of my application

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Also theoldgit you dont know any good visa companys to help. I would feel happy to do on my own but we need to do 2 applications for my wife and her son and i feel it will be to much hard work for me to do
Thanks in advance

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[theoldgit]

I’ll send you a message


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[rasg]

6 hours ago, rubarb said:

I have to houses i rent out in the uk and want to use them for a settlement visa

Im just asking if they take the full rent into account before tax deductions or after deductions

Presumably you submit accounts to the Inland Revenue and pay tax on your earnings? How do you pay tax etc if you don't? I am self employed and my accountant prepares my accounts and the tax man gives me an SA302 which I have to submit, along with bank statements etc.

Edited October 9, 2019 by rasg

[rubarb]

Presumably you submit accounts to the Inland Revenue and pay tax on your earnings? How do you pay tax etc if you don't? I am self employed and my accountant prepares my accounts and the tax man gives me an SA302 which I have to submit, along with bank statements etc.

Yes i pay tax and have the SA302 but i was just wondering if the visa want gross or net income from the house rent.

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[sunnyboy2018]

Do you submit a self assessment form to the British IR? If you are using bank statements from your Thai bank account presumably it will be net income not gross.

[rubarb]

Yes i submit to the British IR and my bank statements are also from a British bank. Its all very complicated lol

Or maybe i am looking to much into it all

Do you submit a self assessment form to the British IR? If you are using bank statements from your Thai bank account presumably it will be net income not gross.

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[rasg]

Why would you submit the gross figure? You must have costs from wear and tear etc which you should be able to offset against tax etc.

[Tony M]

Before the OP's original request for guidance gets lost, this is very simple,  Income from property rental can be used to meet the 18,600 GBP income requirement. The gross rental income figure can be used. This is the guidance:

(a) To evidence property rental income:

 

(i) Confirmation that the person or the person and their partner jointly own the property for which the rental income is received, through:

 

(1) A copy of the title deeds of the property or of the title register from the Land Registry (or overseas equivalent); or

(2) A mortgage statement.

 

(ii) Personal bank statements for or from the 12-month period prior to the date of application showing the rental income relied upon was paid into an account in the name of the person or of the person and their partner jointly. The bank statements should cover the period for which the income is relied upon.

 

(iii) A rental agreement or contract.

[NightSky]

If you find the answer about rental income could you be kind enough to post back here with the answer please?

 

When I read up about this I took it as gross rental income before any tax (laws on how rental income is taxed has changed recently which may point to why gross is taken and not net) although this is just how I read it and it doesn't really make sense that way does it (but neither do the new rental income tax laws). Personally I would try to meet the requirement net of tax income if at all possible - thats just my opinion though.

 

Good luck.

[Tony M]

15 minutes ago, NightSky said:

If you find the answer about rental income could you be kind enough to post back here with the answer please?

 

When I read up about this I took it as gross rental income before any tax (laws on how rental income is taxed has changed recently which may point to why gross is taken and not net) although this is just how I read it and it doesn't really make sense that way does it (but neither do the new rental income tax laws). Personally I would try to meet the requirement net of tax income if at all possible - thats just my opinion though.

 

Good luck.

I thought I had already given the answer.   The gross income from rental income is used towards meeting the requirement, just as gross salary is used towards meeting the requirement through employment income.  The tax on rental income is a separate issue. If you receive property rental income, then you are obliged to submit a tax self assessment every year, and declare the rental income on the Self Assessment SA100 form for HMRC.

[AaronC76]

13 hours ago, theoldgit said:

I’ll send you a message


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Could I also get your knowledge about visa company please?

[Captain 776]

Many are quoting you can use rental incomeprovided you meet requirements but the NEW money requirements supersede the old paragraphs they are quoting.

What is a settlement Visa......lived here 14+ years never heard of that one.

Learn from all your countrymen before you........if you are on limited funds........better u stay in UK.

The only money Immigration cares about is what you have transferred to a Thai bank.

Edited October 10, 2019 by Captain 776

[topt]

9 minutes ago, Captain 776 said:

Absolutely NOT.

What is a settlement Visa......lived here 14+ years never heard of that one.

Learn from all your countrymen before you........if you are on limited funds........better u stay in UK.

The only money Immigration cares about is what you have transferred to a Thai bank.

Did you just get up.....

Look first at which forum this is in. He is talking about a settlement visa for the UK..........Nothing to do with Thai Immigration 

[theoldgit]

5 hours ago, Captain 776 said:

Many are quoting you can use rental incomeprovided you meet requirements but the NEW money requirements supersede the old paragraphs they are quoting. What is a settlement Visa......lived here 14+ years never heard of that one. Learn from all your countrymen before you........if you are on limited funds........better u stay in UK.

The only money Immigration cares about is what you have transferred to a Thai bank.

You’re well off track, have you read the thread? 

The OP is asking for advice about the Settlement Visa for the UK, that’s why his post isn’t in the Thai Visa Forum.

 

Edit - sorry I see topt beat me to it, by a mile.

[rubarb]

I believe all they look at is the gross figure. Money that has been going in your account for the last 12 months without taxable receipts.

Why would you submit the gross figure? You must have costs from wear and tear etc which you should be able to offset against tax etc.

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[brianthainess]

On 10/9/2019 at 6:43 PM, rubarb said:

Thanks theoldgit
Can you tell me also if all i need is a 12 bank statements or do i need a bank certificate from the bank stating its my bank and how long i have had the bank account. I have not heard of this before but have been told i need it as part of my application

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If you are using a legal rental agency in the UK you should also have their monthly statements that might help, but many people don't use one to avoid tax init.

[NightSky]

After reading the financial requirement document for rental income, If the full amount of rent is paid into a bank account and declared then the gross (pre-tax / pre-agent fee) amount can be used.

 

I have a couple of questions about the cash savings method.. 

 

I read that regular bank statements must be issued for stocks and shares ISA however my ISA with one of the large high street banks only sends out an annual summary booklet, does this mean I need to transfer funds into an account that provides regular bank statements?  

 

Also, to be able to prove the funds are declared will I need to show backdated tax returns for the equivalent of the cash savings? (I do have the tax returns but I would need quite a few years worth of returns to account for all the savings amount, maybe 5 or 6 years returns?)

 

Edited October 14, 2019 by NightSky

[rubarb]

After reading the financial requirement document for rental income, If the full amount of rent is paid into a bank account and declared then the gross (pre-tax / pre-agent fee) amount can be used.
 
I have a couple of questions about the cash savings method.. 
 
I read that regular bank statements must be issued for stocks and shares ISA however my ISA with one of the large high street banks only sends out an annual summary booklet, does this mean I need to transfer funds into an account that provides regular bank statements?  
 
Also, to be able to prove the funds are declared will I need to show backdated tax returns for the equivalent of the cash savings? (I do have the tax returns but I would need quite a few years worth of returns to account for all the savings amount, maybe 5 or 6 years returns?)
 

Im not sure about ISA. I had my savings in premium bonds but read and got told it cant be in there as the savings have to be ready and available within 24 hours if needed. So i transferred all my savings into my current account with a letter from premium bonds showing it came from there

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[UKresonant]

On ‎10‎/‎14‎/‎2019 at 10:24 PM, NightSky said:

I have a couple of questions about the cash savings method.. 

 

I read that regular bank statements must be issued for stocks and shares ISA however my ISA with one of the large high street banks only sends out an annual summary booklet, does this mean I need to transfer funds into an account that provides regular bank statements?  

If it is a stocks and shares ISA, it may be possible to get the dividends paid out as income to your bank account. Other S&S ISAs have regular withdrawal facilities, where you can specify a monthly withdrawal amount to your current account. If your current ISA is not suitable, you can transfer the ISA to another provider and preserve the amount within the ISA wrapper.

 

As a minimum you could transfer the stocks and shares ISA to a cash ISA (which can be instant access), to preserve your ISA amount. 

 

Within the Family we have recently transferred cash ISA to Socks and Shares ISA (took a few weeks), and Stocks & shares ISA to Stocks & shares ISA with a different provider (took only a few days!)

 

Worth thinking about...