UK spouse visa .Earnings in the last financial year ?

[matsky13]

Hello all ,I am hoping to apply for a spouse Visa and child Visa for settlement in the UK early this year .

Does anyone know what the "last financial year" means when the UKBA use this term . I am self employed as a sole trader My financial year runs from 31st of January . But after reading as much of the UKBA and lots of really good posts on This forum It is not crystal clear . A tax year as i understand it is April 4 to April 4 . I understand UKBA they want My Tax returns ,UTR copys of the Last Financial Yerars accounts from a member of an Accredited accountant and a few other things .

But which earnings will they be relying on for example It looks like this "Financial year " 31 jan2013 to 31 Jan 2014 I will hit the minimum earnings requirement of £22400 that i will require .But until I get my books back from my accountant in Feb I am not 100% certain. but if its the Tax year then from april 2012 to 2013 then I will not as this is mainly relating to my 2012 to 2013 when I spent lots of the year in Thailand with no income .

So do I wait until April 2014 when it will have a bigger tax return . Or can i start to apply in Feb as soon as my "financial years" accounts have been completed ?.

Thanks in anticipation ,

PS what is the cost of 2 Visa applications and roughly what would the cost be at a Visa Agent for the 2 Applications , If I decide that I don't want the headache of doing it all myself ?

[Tony M]

You may find this response from the UKBA to me, in April last year, of use :

"Dear Tony

In respect of a company financial year the following specified evidence must be supplied:

Company Tax Return CT600 (a copy or print-out) for the last full financial year and evidence this has been filed with HMRC, such as electronic or written acknowledgment from HMRC.

The Company Tax Return CT600 refers to the period of the last full financial year(s) to which the required Company Tax Return(s) CT600 relates.

Obviously this is open to interpretation as it could (as you state) mean either the last tax year (6^th April to 5^th April) or the last financial year of the company. We would suggest that the sponsor should be submitting the latest available (filed with HMRC) CT600 (irrespective of the period it covers) and all supporting documentation (bank statements for example) must relate to the same period as the last issued CT600.

Where the latest CT600 was issued some time ago then the sponsor should still submit this along with the corresponding specified evidence. However it would be useful in assisting the assessment if the other more up to date specified evidence (for example in the 6 month period prior to the date of application but not covered by the CT600) is included with the application."

UKBA now agree that the "last financial year" is the last Company Tax year. All documents must relate to the year on the latest CT600.

The cost of 2 visa applications ( settlement ) is currently 1702 GBP ( 851 GBP per application), but this is likely to increase in April. If you think that you might need the assistance of an agency, then give the forum sponsor a try.

Edited January 15, 2014 by Tony M

[matsky13]

Thanks Tony , that is very useful , I dont have CTR 600 as this is a company Tax return, where as mine is a typical one man band ,sole trader, self employed tax return . But is useful to know that they have left it to "interpretation".

The worry is that they knock me back or put it in the long line of on hold 's for not satisfying the financial requirement.and then I have to resubmit in April .Or are you stuck in the system once you have submitted ?

I really enjoyed your interesting pinned post of yours with the report on the financial requirement and I eagerly await the decision in March . But it will be hopefuly too late for me by then and I will already be on with my Applications .

£1702.00 that's a hell of a lot of money plus the air fares and then the same visa app' fees to pay again in 30 months time .would that be another £1702.00

I realy don't want to be getting it wrong .

[Tony M]

In that case it is the normal financial year that they are talking about. You will need to show a full financial year's records. This is the full list of requirements for sole traders :

7. In respect of self-employment in the UK as a partner, as a sole trader or in a franchise, all of the following must be provided:

(a) Evidence of the amount of tax payable, paid and unpaid for the last financial year.

(b )The latest:

(i) annual self-assessment tax return to HMRC (a copy or print-out);

(ii) Statement of Account (SA300 or SA302); and

(iii) the same for the previous financial year if the latest return does not show the necessary level of gross income, but the average of the last 2 financial years does.

(c ) Proof of registration with HMRC as self-employed if available.

(d) Each partner's Unique Tax Reference Number (UTR) and/or the UTR of the partnership or business. 54

(e) Where the person holds or held a separate business bank account(s), bank statements for the same 12-month period as the tax return(s).

(f) Personal bank statements for the same 12-month period as the tax return(s) showing that the income from self-employment has been paid into an account in the name of the person or in the name of the person and their partner jointly.

(g) Evidence of ongoing self-employment through evidence of payment of Class 2 National Insurance contributions.

(h) One of the following documents must also be submitted:

(i) (aa) If the business is required to produce annual audited accounts, the latest such accounts; or

(bb) If the business is not required to produce annual audited accounts, the latest unaudited accounts and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006);

(ii) A certificate of VAT registration and the latest VAT return (a copy or print-out) confirming the VAT registration number, if turnover is in excess of £73,000; (iii) Evidence to show appropriate planning permission or local planning authority consent is held to operate the type/class of business at the trading address (where this is a local authority requirement); or (iv) A franchise agreement signed by both parties.

(i) The document referred to in paragraph 7(h)(iv) must be provided if the organisation is a franchise.

Edited January 15, 2014 by Tony M

[matsky13]

Now I am confused again , are you saying a "normal financial year " is April to April ? or my financial year that is end of Jan to end of Jan . I am aware of all the other requirements on the list above but As my first post points out they have not made it clear what a "financial year" means ?

Sorry Tony if I am missing something obvious

[Tony M]

For you, as a sole trader, it is the normal tax year they are talking about. Forget the earlier stuff which applies to limited companies. You won't have CT600's ( CT means Company Tax), you will have HMRC issued SA300's or SA302's ( SA means Self Employed).

[matsky13]

I Think I have got this now .

A. I submit my accounts JAN2013 to JAN 2014 (accredited by one of the supervisory bodys on the list) that show I earned Gross above £22400.

B I submit the latest Tax return SA 300 which will be for 31 jan 2013 to 31 Jan 2014. this will include the amount of tax paid in Jan 2014 and will be backed up with the Bank statements etc .. UTR etc ...

C I submit all the documents showing what tax i paid in the last Tax year which is April2012 to April 2013 (For my situation this will not show enough tax paid for the minimum earnings requirement as it applys largley to the previouse years Jan 2012 to Jan 2013 earnings that where below the threshold ) .

D Bank statements showing Class 2 National insurance monthly payments and all the other documents from the Tax office.

[Tony M]

I Think I have got this now .

A. I submit my accounts JAN2013 to JAN 2014 (accredited by one of the supervisory bodys on the list) that show I earned Gross above £22400.

B I submit the latest Tax return SA 300 which will be for 31 jan 2013 to 31 Jan 2014. this will include the amount of tax paid in Jan 2014 and will be backed up with the Bank statements etc .. UTR etc ...

C I submit all the documents showing what tax i paid in the last Tax year which is April2012 to April 2013 (For my situation this will not show enough tax paid for the minimum earnings requirement as it applys largley to the previouse years Jan 2012 to Jan 2013 earnings that where below the threshold ) .

D Bank statements showing Class 2 National insurance monthly payments and all the other documents from the Tax office.

I may be wrong on this, but I'm not sure why your tax year ( and therefore your self assessment return) runs from Jan to Jan. Surely, it has to be April to march, as in a normal tax year ? Only companies have a "company tax year" ? But, I'm not an accountant, so I don't know for sure. If you have an accountant, he should be able to tell you.

[Seekingasylum]

Tax years for the self employed vary depending upon commencement of trading etc. They do not adhere to the fiscal year observed by PAYE folk.

Edited January 16, 2014 by Seekingasylum

[Tony M]

Tax years for the self employed vary depending upon commencement of trading etc. They do not adhere to the fiscal year observed by PAYE folk.

That's good to know. Thanks. Was always PAYE, myself.

[matsky13]

Thanks guys this is the whole point of my post .

As you say Seekingasylum 90 percent of self employed peoples financial years start when they commence trading business mine was the of 21st JAn 1990 . around 10 years ago my accountant some how managed to move it to 31st of jan just to make it a bit more straight forward when completing a tax return Tax returns have a deadline of 31st of Jan They have to be in by the 31st JAn but can be submitted as soon as your financial year ends and you have completed the years accounts .

On the 31st of Jan this year in a couple of weeks time my last set of accounts have to have been submitted , for me this is year end JAN31st 2013 and I will be paying the TAx owed for that year and an amount towards the following years tax , then another payment will be made 6 months later . But as i say the amount of Tax I will have paid will be the Tax owing on the year end 2013 , that year my earnings where below the threshold as i had spent half the year in Thailand not earning .but in my financial year that will end 31 Jan 2014 . I should be above the threshold and will be able to have these accounts ready and submitted to HMRC tax people in early Feb. the Tax owing for that year will not be due to be paid until 31st Jan 2015 though .

I spoke to my accountant already and he does not know anything about UKBA and visa requirements , I don't expect him to .
He seems to think they probably want my latest tax return .And copys of my Tax statements showing I have been paying tax .

The UKBA as usual leave everyone wondering what they actually want. and leave the poor tax paying public wondering if the masive amount of money they are about to part with in Visa fees will be wasted .

Anyone out there who may have recently had to do the thing , your views would be a great help .

In anticipation,
Thanks again everyone for taking time to read the post ..


here is a link to a gov website explaining tax returns etc https://www.gov.uk/understand-self-assessment-statement/payments-on-account

and here is a snippet from that web page .

What and when to pay

Each payment is half your previous year’s tax bill. Your payments are due on 31 January and 31 July.

Example
You’re self-employed and the tax due for 2012 to 2013 tax year is £1,500. For the 2013 to 2014 tax year you make your first payment on account of £750 by 31 January 2014 and your second of £750 by 31 July 2014.

When you do your tax return online you’ll be shown a ‘tax calculation’ (it’s sent to you in the post if you do the return on paper). This tells you the tax due, the next payment on account instalment and when these are to be paid.

[matsky13]

Anyone On the Site have any Knowledge of this or even better first hand experience of the "financial year" requirement ?

[jd147]

Matsky I'd be fascinated to know how you got on? I have the exact same problem now and have searched high and low for the answer. I'm also self employed and my tax year runs may to may. Its still unclear if they would accept these accounts in June....

Joe