IHS surchage scam ?

[Pete Beale]

My Wife just completed her application for settlement visa, I was under the impression I'd have to pay £500 for her IHS surcharge, £200 a year x 2 1/2 years, but I had to pay US 960 which is about £611. If this is how they convert pounds into dollars it's a shocking rip off rate, or am I missing something ?

[durhamboy]

Actually I think the IHS surcharge for the initial settlement visa is £600 not £500. This is because it is for 2 years and 9 months and they round it up to 3 years at £200 p.a.

Yes, always in their favour. They charge you for 3 months (£50) that your wife will never have + the exchange rate ripoff!!!!!!!!!!!

[ukguy51]

No the fee is £500 for the first visa well was when I done visa application 2 months ago. Yes the exchange rate is a rip off

[7by7]

If you check what you paid for the actual visa fee, you’ll see that the same exchange rate rip off was used for that as well.

This is a government decision, and they have offered very feeble excuses for it; one being that their service provider, WorldPay, will only process payments in USD.

Which is total <deleted>; WorldPay have confirmed they will process payments in Sterling or any other currency of the customer’s choosing.

[ukguy51]

I did mine in the UK as the wife was in the UK at the time and she had VFS appointment on the day she flew back to Thailand, they have accepted it and not questioned it. I did ring UKVI first and said she was in the UK they talked me through doing it. Either they slipped up or as long as it is paid and the ref number written on the Visa app when submitted doesn't matter were you pay. Probably a loop hole they will plug soon.

[ukguy51]

Actually I think I read somewhere it is now linked in with the online application which it was not when we did ours so yep loop hole pluged

[TCA]

From the .gov.uk website:

"You’ll pay half of the yearly amount if your application includes part of a year that is less than 6 months.

You’ll pay for a whole year if you’re application includes part of a year that is more than 6 months."

They can't even get the punctuation correct - "you're application...."

https://www.gov.uk/healthcare-immigration-application/how-much-pay

There's a link on that page to a calculator which confirms durhamboy's post about £600 for the initial visa and £500 for FLR applications. I look forward with much joy to paying the latter in a few months (in dollars!).

[Pete Beale]

Was actually mildly pleasantly surprised by the visa fee, was under the impression that was £1000 so expected it to be over £1200 by time it had been converted to US dollars and back again. Came in at 1530 which is £974 or thereabouts.

[durhamboy]

Was actually mildly pleasantly surprised by the visa fee, was under the impression that was £1000 so expected it to be over £1200 by time it had been converted to US dollars and back again. Came in at 1530 which is £974 or thereabouts.

I would suggest that this is probably because the pound went up recently against the US Dollar. So by the time the visa cost went from pounds to dollars and then back to pounds (which is effectively what happens) then the rate probably went in your favour and you came out even! If rates do not change then the usual loss is about 8% which, as 7by7 says, is scandalous.

Btw, I paid my wife's IHS surcharge for her FLR recently. I had a few problems with the system. At one point I thought I'd paid it when in fact I hadn't. The problem is that they give you the reference number BEFORE you've paid it so it can look like it is paid. Just something to be aware of. Imagine having an FLR refused for not having paid the IHS surcharge when you thought you had paid it and possibly losing the FLR fee of £649!!!!!!!!!!!!

[TCA]

Btw, I paid my wife's IHS surcharge for her FLR recently. I had a few problems with the system. At one point I thought I'd paid it when in fact I hadn't. The problem is that they give you the reference number BEFORE you've paid it so it can look like it is paid. Just something to be aware of. Imagine having an FLR refused for not having paid the IHS surcharge when you thought you had paid it and possibly losing the FLR fee of £649!!!!!!!!!!!!

Thanks for pointing that out db. I didn't realise your wife's FLR application was quite so soon, so all the best and fingers crossed they know their own rules regarding BULATS!

[cracker1]

This does not affect me in any way but I ask why don't you pay your fees in $Us ?

[NanLaew]

This does not affect me in any way but I ask why don't you pay your fees in $Us ?

Because most UK citizens don't have a US$ credit card or US$ accounts and UK Immigration and its agents don't accept US$ cash payments?

[MAJIC]

Yes you are: cheap health service,that no insurance will give you at the rate you will be paying!

I have supported my wife through the Settlement Visa, ILR, and Naturilisation process,and finally her British Passport,and driving licence,estimated total cost is in excess of £5000 purely on paperwork, do I begrudge it? no ! on the contrary I consider it money well spent,she is now covered for medical insurance and any other eventualities. Some of you guys should shop around and realise the real cost of what you are getting for your family,and not be constantly whining about the cost of health care and costs that you need to pay for their well being,the UK is not a bottomless pit for freebies for the world,our NHS is sinking under excessive generosity,and now has to think of our own people,and not the rest of the world claiming unearned freebies!

[durhamboy]

Actually MAGIC I haven't personally heard anyone complain about the value for money of the health surcharge. The complaints I and others have made are that this comes on top of extornionate visa fees and some spouses/partners are already paying their National Insurance contributions out of their work pay and so they are double paying for the service.

I agree with your figure of £5,000 for the whole process. Unlike you I do begrudge it because in my opinion it is a government money making exercise that takes advantage of a captive market.

[7by7]

Indeed, Durhamboy.

When announcing visa and LTR fee increases for 2015 the government did not give the actual processing cost, but they did do so up to the announcement for the 2014 increases. This showed that the fees for the settlement visa, FLR and ILR are set way above the cost of processing.

• Settlement visa cost £378, fee £885
• FLR cost £278, fee £601
• ILR cost £278, fee £1093.

So the exchequer is already making a vast profit out of family migration.

Remember the above figures relate to the fee increase w.e.f. April 2014. The April 2015 increase means the fees are now substantially higher, but I doubt the costs have gone up bay as much as the fee increase.

Plus, like my wife, many family migrants start work in the UK as soon as they can; so they are also contributing through their income tax and NICs.

Even those who are not working pay VAT on almost everything they buy.

IMHO the introduction of this surcharge means that in effect family migrants are now paying at least twice, and if working three times, toward the NHS and other government services!

What next?

A council tax surcharge so they can have their bins emptied?

[durhamboy]

Furthermore 7by7 I would question how the government calculates the cost of visas - £378 for SV and £278 for FLR/ILR seems excessive to me.

Are they direct fees i.e. fees that you can directly attribute to the visas or, as I suspect, do they include a proportion of overhead? E.g. is the cost of the Home Office buildings and support staff apportioned out to the services provided. Probably yes.

[7by7]

I have no idea how they work the cost out.

Like you, I assume that figure includes an element towards the overall costs of running UKVI; costs not directly involved in an individual application.

[ukguy51]

It is a disgrace. Making a huge profit on something which is a right, to have our partners live with us in the country we was born in, it is not a privilege. I have now got to part with best part of another grand fly to Thailand to take original documents and start all over again due to two public sector departments screwed up my 1st app.

[bobrussell]

It has been suggested on many occasions that actual time spent processing visas is minutes rather than hours or days. The cost suggested is clearly not related just to the wages of the ECO. As the owner of a business I can quite see how these figures could be realistic. By the time overheads are taken into account the figure is not unreasonable.

I have stated on many occasions that I do not feel the actual figures paid are that excessive as such. Someone arriving on a 'settlement' visa will be able to benefit from many services FOC. The key one being schooling for any children. The NHS surcharge has reduced this but the fees still offer great benefits IMO.

The service received by us, the 'customer', is often really poor. For the money paid the speed and quality of service should be significantly higher.

[ukguy51]

That maybe the case for spouse with children, however my spouse will start work as soon as she arives as she has alreadybeen offered a jop so she will be paying taxes same as anyone else, I do not begrudge paying for the visa obviously ther are overheads involved and the tax payer should not have to foot that bill. However making such a huge profit for very little work is just a rip off. If the ECO put more effort into reslving issues of missing documents that if supplied would grant the visa then fair enough. When it is near a grand to tick boxes and refuse on simple and easy to rectify issues it is a scam IMO.

[durhamboy]

Benefits of living in the UK such as free schooling are the right of the people paid for by taxpayers. Most, if not all, sponsors will have paid a lifetime of taxes to the UK government and therefore it is their right to have free schooling etc for their family. Same with NHS treatment.

As for the cost to the government of issuing visas it seems we have to accept what they say without an explanation as to how they calculate the figures. It is in their interests to make them as high as possible. In accountancy, apportionment of fixed overheads is always a contentious issue. In short, I think these costs are over-inflated.

Also look at the increases in visa fees over the last 15 years and compare that to the rate of inflation.

[7by7]

When my wife and daughter applied in 2000 the fees were:

• Initial visa:£260 each (actually slightly more as it was paid in baht at an exchange rate favourable to HMG).
• FLR if required (which it wasn't in their case); £0
• ILR £0

That was probably below the actual cost of processing all the applications through to ILR; especially if one or more FLR applications were involved.

I do believe that visa and LTR applicants should cover the cost of their applications and not expect the taxpayer to subsidise them (even though I was effectively the beneficiary of such a subsidy); so increases were in order.

It is setting the fees way above the government’s own calculations of the actual costs involved, over double the cost for the initial visa and FLR and nearly four times the cost for ILR and similar profits on most other categories, which I object to.

Plus, of course, the annual, above inflation increases to the fees.

When Labour first introduced these excessive fees my MP was Shadow Immigration Minister. He and his fellow Tories were very vociferous in their objections to the excessive nature of the new fees regime and the proposed above inflation increases each year.

What did his party do when they came to power?

As we all know, they carried on with Labour’s policy.

With regard to the health surcharge, I firmly believe this was motivated by politics, not economics nor any other cause.

The Great British Public was objecting to what was believed to be 'abuse' of the NHS by immigrants entering the UK to take advantage of free health care.

Instead of explaining that most non EEA immigrants, all except students in effect, work and pay taxes themselves, are the family member of a British citizen who works and pays taxes or both and telling the GBP that non EEA visa and LTR application fees actually make large profits for the exchequer; the government took the easy way out and introduced this £200 p.a. surcharge.

Now they can say to the GBP that they have 'done something' to stop the 'abuse' of the NHS by immigrants; abuse which never existed in the first place!

[fbf]

It is a disgrace. Making a huge profit on something which is a right, to have our partners live with us in the country we was born in, it is not a privilege. I have now got to part with best part of another grand fly to Thailand to take original documents and start all over again due to two public sector departments screwed up my 1st app.

While understanding your sentiment, and also that there are other reasons to fly than bringing the documents (like, seeing your wife!) but I should also mention FedEx are very useful when needed.

I brought most documents when I travelled for our wedding, but there was an issue with timing where I wouldn't get my latest bank statements/payslips until I'd returned to the UK. For just over £50 I had the documents collected from my house and delivered to a hotel in Bangkok where my wife was staying ahead of the appointment (most hotels allow this, but do check first). They might not deliver all over Thailand but to many addresses near Bangkok. Took less than 48 hours (allowing for time zone) and was tracked all the way. Sign-up on their website and label printing is a faff, but child's play compared with a visa application.

Just wanted to give you options, although I understand your situation is far from easy.

[durhamboy]

7by7 - good point when you say :-

"It is setting the fees way above the government’s own calculations of the actual costs involved, over double the cost for the initial visa and FLR and nearly four times the cost for ILR and similar profits on most other categories, which I object to."

The cost of ILR is now £1500. Presumably the "so called" cost to the government remains around £278. Therefore the charge is well over 5 times the cost!!!!!!!!!!

Can anyone justify why FLR is £649 (bad enough in itself!) and ILR is £1500? I can't.

[ukguy51]

Thanks fbf yes did think of sending this way the reason i will go is two fold yes of course paramount is to see the wife and settle any doubts in her mind, she is so confussed of it all and thinks she has done something wrong. As we all know the whole application with vast amount of documents, the worry and confusion in making sure everything is there is a daunting task for us English.

My wife would not have a clue as to if all docs are there her English is very good speaking and some writing how ever to do the full app and know of all the docs is way beyond her. half the original documents are with her from the refusal half here. Given that I was supplied the wrong document by my local council and I did not have a clue it was wrong have no option really but to take it all there double and treble check before submitting.

My wife does not even want to go to Bangkok with the resent bomb issue so again support is needed. We will have to stay there a few days as now her TB test has ran out waiting for the refusal bundle to be returned. I was going to go down the appeal route but best part of a year again forces ones hand in a new application.