Category A - Financial Requirement

[faisaltanoli]

Good Afternoon,

I am bit confused. I am sending my wife's FLR(M) extension and in order to meet £18600 requirement, I have following situation.

I am with my current employer just six(6) months and my annual salary is £33953.00. In last six month, I have earned £17943.00.

My employer has given me the letter stating the annual gross income. Also, I have salary slips for last six moths which correspond with the bank statement.

Could, I apply under the "Category A" or go for "Category B" to include the previous employer earning in last 12 months.

Thanks
Regards
Faisal

[Obie]

If you have been earning this rate for 6 months, then it makes no sense to use section B.

[faisaltanoli]

If you have been earning this rate for 6 months, then it makes no sense to use section B.

Thanks, Obie,

I was confused that in last six(6) month I have earned less then £18600, though my annual gross income is £33953 whether it will let me come under category A and application will not be refused

[seagul]

I think you can use category B which is allowed if you cannot meet income threshold by not earning required income.

[seagul]

See official wording:

Category B: Less than 6 months with current employer or
variable income – person residing in the UK
5.3.1. This category can be used where the applicant’s partner (and/or the applicant if they are
in the UK with permission to work) is in salaried or non-salaried employment at the date
of application, but has not been with the same employer and/or not earning the income
level relied upon in the application for at least 6 months prior to the date of application. It
can therefore be used by those who have been with their current employer for less than
6 months, or who have been with their current employer for at least 6 months but
earning a variable income and wish to be considered in this category rather than under
Category A.

[faisaltanoli]

I think you can use category B which is allowed if you cannot meet income threshold by not earning required income.

Yes, I can, but it will require more documentation.
My question is whether It would be acceptable having six-month income less than £18600, but annual gross income more than £33953,00. It will fulfill the minimum threshold of financial requirement under category A

[seagul]

Why don't you use your savings if you have to clear such shortfall.

[MobeenSaeed]

I was confused that in last six(6) month I have earned less then £18600, though my annual gross income is £33953 whether it will let me come under category A and application will not be refused

You seem to be confused as to what you should have earned by the sixth month. This can be broken down into two parts:

i) If you're on non-salaried, then, by the sixth month you need to have earned a total of £9300.
ii) If you're on salaried, then, the lowest wage is taken from your 6 months of payslips and that is multiplied by 12 to obtain your gross annual salary. If each of your monthly wage is on or above £1550, you're fine.

if you're part i, then you're fine as you have already earned well above that. But, if you're part ii, then, you need to make sure each of your monthly wage for the past 6 months is on or above £1550.

[faisaltanoli]

I was confused that in last six(6) month I have earned less then £18600, though my annual gross income is £33953 whether it will let me come under category A and application will not be refused

You seem to be confused as to what you should have earned by the sixth month. This can be broken down into two parts:

i) If you're on non-salaried, then, by the sixth month you need to have earned a total of £9300.
ii) If you're on salaried, then, the lowest wage is taken from your 6 months of payslips and that is multiplied by 12 to obtain your gross annual salary. If each of your monthly wage is on or above £1550, you're fine.

if you're part i, then you're fine as you have already earned well above that. But, if you're part ii, then, you need to make sure each of your monthly wage for the past 6 months is on or above £1550.

Thanks Mobeen,
I am fall in part ii category. My minimum salary per month is approx £2830 since last six months. It never fall then this amount. I am thinking that I would be fine using "category A"

[MobeenSaeed]

Thanks Mobeen,
I am fall in part ii category. My minimum salary per month is approx £2830 since last six months. It never fall then this amount. I am thinking that I would be fine using "category A"

You would be correct to go with Category A as you meet the requirements.

[seagul]

Best if you provide us the last 6 months wages figures.

[faisaltanoli]

Best if you provide us the last 6 months wages figures.

April 2017: £3098
March 2017: £2985
February 2017: £2666
January 2017: £3027
December 2017: £3063
November 2017: £2964

They all are above £1550 per month.

[seagul]

I don't know with these figures you were asking and confusing yourself with category B. It's simply fit for category A non-salaried route.

[faisaltanoli]

I don't know with these figures you were asking and confusing yourself with category B. It's simply fit for category A non-salaried route.

sorry for being bit dumb, but why non-salaried route? I have fixed annual salary of £33953.00. The variation is just because of mileage.

[seagul]

HO don't care the reasons for variable income. All they care what is the wages figure and since your last 6 months wages varying then more likely falls under non-salaried.

[faisaltanoli]

HO don't care the reasons for variable income. All they care what is the wages figure and since your last 6 months wages varying then more likely falls under non-salaried.

seems logical

[faisaltanoli]

HO don't care the reasons for variable income. All they care what is the wages figure and since your last 6 months wages varying then more likely falls under non-salaried.

How do I mention on application form that I am applying under category A non-salaried category. It just say Category A and Category B

[MobeenSaeed]

I don't know with these figures you were asking and confusing yourself with category B. It's simply fit for category A non-salaried route.

HO don't care the reasons for variable income. All they care what is the wages figure and since your last 6 months wages varying then more likely falls under non-salaried.

This is wrong. He should be applying Cat A, Salaried. Read the official guidelines published by HO, on page 30:

"Overtime, commission based pay and bonuses (which can include tips and gratuities paid via a tronc scheme registered with HMRC) will be counted as income from employment where they have been received in the 6 or 12 months prior to the date of application as applicable. Sometimes the person will receive the same amount of income from overtime each month; sometimes overtime payments will vary, with different amounts (if any) each month. All overtime in salaried employment will be calculated based on the approach to income from non salaried employment. This will be an annualised 6-month average for the overtime which will be added to the level of the gross annual salary."

https://www.gov.uk/government/uploads/s ... rement.pdf

Notice the bold, all overtime pay, bonuses etc will be calculated based on the approach to income from non salaried employment, but, this will be added on to the salaried employment. In other words, you can have variation within your monthly wages and still be in salaried employment. And OP has explained the differing figures for his monthly wages.

How do I mention on application form that I am applying under category A non-salaried category. It just say Category A and Category B

I believe you are referring to page 27 of the application form. It looks similar to, Leave To Enter application (VAF 4A appendix 2, specifically), so, you will not have the option of writing/ticking salaried or non-salaried; this will be shown in your payslips, employment letter and a cover letter (not sure if you need it for this application).

[seagul]

@mobeensaeed:
Your self assumed interpretation about the bold paragraph on page 30 is incorrect and incomplete because even the bold paragraph clearly mentioning to use non-salaried income netted to treat overtime/commission/bonuses etc. If you still disagree then can you again give the bold points from official book instead your own interpretation which says that after using non-salaried formula added it back to annual salaried income.
And the area you studied from official book relates to overseas resident returning uk see also case studies there.

[MobeenSaeed]

@mobeensaeed:
Your self assumed interpretation about the bold paragraph on page 30 is incorrect and incomplete because even the bold paragraph clearly mentioning to use non-salaried income netted to treat overtime/commission/bonuses etc. If you still disagree then can you again give the bold points from official book instead your own interpretation which says that after using non-salaried formula added it back to annual salaried income.
And the area you studied from official book relates to overseas resident returning uk see also case studies there.

The stuff you wrote in bold is exactly my point. All overtime and bonuses from salaried employment will be calculated based on the approach from non-salaried employment. You have forgotten to notice that this presupposes the individual is receiving a set income (annually), hence why it's mentioned overtime for salaried and not overtime for non-salaried, bonuses for salaried employment and not non salaried employment etc. And the area I'm quoting from is of the following title:
"Salaried and non-salaried employment –general requirements" and not "overseas". What you are referring to is a case study which explains how to calculate annual salary for commission based pay and adding that to salaried employment.

[seagul]

If you wish you can continue over that because the area you are highlighting is neither clear there nor backed by proper case studies from within UK and also causing your interpretation wrong.

[MobeenSaeed]

If you wish you can continue over that because the area you are highlighting is neither clear there nor backed by proper case studies from within UK and also causing your interpretation wrong.

"All overtime in salaried employment will be calculated based on the approach to income from non-salaried employment.

"This will be an annualised 6-month average for the overtime which will be added to the level of the gross annual salary."

This seems extremely clear to me and very simple to understand. The individual is on salaried employment but also receives overtime pay from salaried employment. And, the gross overtime pay will be calculated the same way gross annual salary, for non-salaried is calculated and that will be added to the "gross annual salary", which is the salaried employment. This is just a fact from the above quote from the official HO guidelines. But, I see this is getting nowhere, and, so we should leave it at that.