Cash savings and self employment

[harv]

Hi everyone

Although I am not about to submit an application for ILR, but I just have a small question to clear. THis would also benefit others in self employment.

The following document (http://www.ukba.homeoffice.gov.uk/sitec ... FM-1.7.pdf)

mentions (page 11 and 12): 'Cash savings cannot be used in combination with Category F' and
'Cash savings cannot be used in combination with Category G.'

Does that mean, self employed people cannot combine there savings with their earning to meet any shortfalls in the financial requirements i.e. £18,600? or am I just over thinking this one?

Thanks

[MPH80]

I think it's pretty explicit in the rules:

(f) Where the person is self-employed, they cannot combine their gross annual income at paragraph 13(e) with specified savings in order to meet the level of income required under Appendix FM.

http://www.ukba.homeoffice.gov.uk/polic ... ndix-fmse/

I noticed this the other day when going through them on the limited company contractor threads and my thought at the time was 'really?' ... but it looks like they've decided to do that.

It might be that (for sole traders etc) the 'company' might have a nice cash float but it might disappear at any second so can't be relied on and they are more interested in cash flow in.

Dunno - just speculating.

[harv]

I am also very surprised to be honest, although it seems a bit relevant for self employed (non-limited company) people, but not for limited company owners/directors.

Here is the reason:

- Sole trader/self employed - You can use your personal bank account for your self employment cash flows and do not require a limited company bank account to keep the finances in order.

- Limited company/self employed - You need to have a limited company account to keep the financial affirs completely seperate of your and the company's. So from limited company perspective, you would not transfer money in your personal account unless it has been reported to HMRC and taxed.


So I guess UKBA has done it again by mixing upt things and messing up things for people. Although it does not cause any issues to me as I meet the financial requirements (annual salary) with flying colours, but other people in unfortunate circumstances even having the amount will not be eligible such descrimination and/or careless oversight...

[MPH80]

Equally - a limited company could loan the money to a director for 6 months ... then take it back the moment the visa is granted.

But then - if the company had enough money to do that - you'd assume the person concerned would be drawing enough in dividends or salary to cover the income.

I suspect this is a whacking great log to cover a tiny crack. E.g. block all self employed people from using savings because there's a gap for one or two types.

I strongly suspect this is really for sole-traders as at that point they are the company and all bank accounts are in their name. But - as we've observed, the rules apply to all.

M.

[harv]

Yes MPH80, completely agree with you.

Poor rules as always...

[cadle]

I may be wrong but income and savings cannot be used together if you are self employed... You need to earn £18600 or have £62500 in cash savings the ECO Will want to see evidence of where such savings has come from.