UK settlement financial requirement

[Pete Beale]

I'm hoping to apply for UK settlement with my Wife next month, I'm self employed as a Cabby and have documents from HM Revenue & Customs and my Accountant to say I earned above the £18'600 limit. But I'm sure I read somewhere that if you deal in cash which I do then you need to show that cash going into a bank account, I've only been putting into the bank what I have left over after paying all my living expenses, this will be considerably less than the £18'600 for the last year. Will I be wasting my time and money applying for settlement at this time, would I have to put all my cash earnings into my bank account and apply next year ? If I wrote an explanation in the letter detailing our relationship why I don't have £18'600 going through my bank account, maybe a list of expenses I pay before putting the remainder of my earnings into my bank would that be likely to be accepted or is it black and white in this matter ? I feel we've got a fairly strong case in other respects, she's had 2 previous UK tourists visas and has a good professional employment record.

[bobrussell]

Not an expert on the financial requirements but your accounts and self assessment income tax return should show your income. The guide:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/420154/Appendix_FM_Annex_1_7_Financial_Requirement.pdf

Specifically:

9.3.8. 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.

[bobrussell]

Should have added it might be worth clarifying the actual situation in your covering letter in words of little more than one syllable, making it clear where in the books/tax return it is shown that you exceed the magic number.

Having held ECO's in quite high regard, knowing they have to make judgements within a short time, I now freely admit some deserve other, not quite so positive respect!

[Thai Visa Express]

The ECO will expect to see some evidence that you earn what you claim even though you are in a cash-based business, otherwise the "system" is open to abuse. Some self-employed sponsors are in a a difficult positions, as they previously claimed a smaller income ( for tax purposes), and now want to claim a higher income ( for settlement visa purposes). ECO's know this, and the government (UKVI) now ask for some "evidence" or, as bobrussell says, a reasonable explanation.

In order to keep the tax man (HMRC) happy you ( or your accountant) provided him with some figures relating to your income and expenditure. Your accountant would have needed some "evidence" of your claimed gross income, possibly in the form of cancelled cheques and your "drawings" ( that is the money you use from cash income or petty cash). You should ask your accountant to confirm your drawings ( they could well already be shown on your annual accounts).

If,as bobrussell says, you can explain your income and outgoings reasonably, along with your accountant's written confirmation, you could well be okay. The alternative is, as you say, to wait until the end of this tax year, and keep good records.

Tony M