Self-employed Tier 1 G - invoice paid outside 12-mo window

[katwmn6]

Hi everyone,

I haven't been able to find any info on this and would greatly appreciate any guru input.

I will be applying for ILR in March 2014 on the basis of 5 years on Tier 1 (General). I will be using a combination of employed and self-employed earnings for the 12 period from Dec 2012 through Nov 2013.

My income for Nov will come entirely from self-employment, which presents a problem: I only invoice after my work is completed. So if I work the entire month of Nov, I will invoice at the end of Nov and then receive payment in December (which falls outside of my 12-mo earnings window).

I technically will have earned the income in Nov, but I worry that a caseworker would discount any evidence submitted from Dec 2013 on the basis that it would then be a 13 month window (even though the money was all earned within 12 months).

Does anyone have any experience with this, or can anyone point to anything in the immigration rules or guidance that addresses this issue? It is very unlikely my clients will agree to pay in advance.

Many thanks,
K

[Lucapooka]

This is a common problem with self-employment income in the final months of the final year. The income has to fall within the 12 months as a credit into your bank account. This sum will not be considered if it is still an outstanding debt as there is no guarantee that it will ever be paid; it's not uncommon for small traders to experience non-payment for services provided. Furthermore, in terms of your total income, if this amount is essential rather than ancillary, the UKBA will want to satisfy themselves that you have not contrived a situation where you have printed an invoice for an amount merely to achieve the correct income threshold for sufficient points, but there is actually no intention or prospect for the money to be paid. An unscrupulous person could do this and cancel the invoice after the new visa was issued. For this reason, there is always very close scrutiny applied to SE income that is garnered the last months of a qualifying 12 month period; a period which is otherwise made up of income garnered thru employment. You won't get a same day approval at the PEO in such cases. Good luck.

Do you actually need this money to score the necessary points? If you do you should ask the company, due the circumstances, to pay the outstanding amount sooner.

[Spring]

Hi everyone,

I haven't been able to find any info on this and would greatly appreciate any guru input.

I will be applying for ILR in March 2014 on the basis of 5 years on Tier 1 (General). I will be using a combination of employed and self-employed earnings for the 12 period from Dec 2012 through Nov 2013.

My income for Nov will come entirely from self-employment, which presents a problem: I only invoice after my work is completed. So if I work the entire month of Nov, I will invoice at the end of Nov and then receive payment in December (which falls outside of my 12-mo earnings window).

I technically will have earned the income in Nov, but I worry that a caseworker would discount any evidence submitted from Dec 2013 on the basis that it would then be a 13 month window (even though the money was all earned within 12 months).

Does anyone have any experience with this, or can anyone point to anything in the immigration rules or guidance that addresses this issue? It is very unlikely my clients will agree to pay in advance.

Many thanks,
K

Hi Katwmn6,

In my humble opinion, there should not be any problem. As long as you have proof that your work was done in November, it should be alright to claim those earnings when you apply later in March 2014. In fact, you are legally bound to declare those earnings for tax purposes for that period. Ask your accountant or solicitor if you require confirmation.

All the best.

[katwmn6]

This is a common problem with self-employment income in the final months of the final year. The income has to fall within the 12 months as a credit into your bank account. This sum will not be considered if it is still an outstanding debt as there is no guarantee that it will ever be paid; it's not uncommon for small traders to experience non-payment for services provided. Furthermore, in terms of your total income, if this amount is essential rather than ancillary, the UKBA will want to satisfy themselves that you have not contrived a situation where you have printed an invoice for an amount merely to achieve the correct income threshold for sufficient points, but there is actually no intention or prospect for the money to be paid. An unscrupulous person could do this and cancel the invoice after the new visa was issued. For this reason, there is always very close scrutiny applied to SE income that is garnered the last months of a qualifying 12 month period; a period which is otherwise made up of income garnered thru employment. You won't get a same day approval at the PEO in such cases. Good luck.

Do you actually need this money to score the necessary points? If you do you should ask the company, due the circumstances, to pay the outstanding amount sooner.

Hi Lucapooka, many thanks for your quick response. As I am applying for ILR in March 2014, I will have received the Nov income at the point of application, and will have evidence of the income on a Dec payslip. (I am applying using the income from the first 12 months of the 15 month qualifying period.) Would this still be an issue for the UKBA? The Nov income is necessary for me to meet my income threshold.

I will be claiming points from employment income from Dec 2012-March 2013, and from self-employment income for June 2013-Nov 2013, as I have legitimately changed professions, so hopefully this won't draw unnecessary scrutiny.

If there's any way you could reply tonight I would be hugely grateful.

Many many thanks.

[Lucapooka]

You don't get payslips for SE income so I wonder what you are referring to. Without talking about your case in particular, I would like to show you how the 12 month income window is fixed rather than flexible. The other poster who commented is confusing the tax reporting rules with the very different rules that the UKBA have established for points-based applications. Late payment for services rendered is a fact of life and is part of the costs of doing business.

Let's take the example of a person who wishes to claim SE income for a 12 month period from January to December, but has outstanding payments from the previous year. He invoiced in November but the payment did not come through until January. The same immigration rules that would readily permit him to include this late payment (because by arriving in January, it falls as paid income within his 12 month window) also prevents him from including any income for services that are provided in December of his final year but have yet to paid in that month. You can't have it both ways!

[katwmn6]

Thank you Lucapooka, that makes sense. I meant to write "bank statement" (not payslip). So I need to have earned AND received all payment within the 12 month window.