FLR (M) Extension - Financial Requirements

[yhdil]

Dear members, please help me out with the following:

I am BC and my wife is on FLR (M) and we have BC child.

Her next extension is due in May, 2017.

I am self employed and take transport tenders. As I couldn't secure enough contracts for year 2016/17, my Taxable Income is likely to drop from £20,000/- to about £16,000/-. My wife is working for me part time(Sectary/Admin Officer, less than 20 h/week) since November 2015 and she is paid monthly wage of about £450/- (£5,400 p/a).

So at the time of extension, our closing year financial earning would be as follow:

My Income from .................................................£16000/- (Self Employed)
My Partner's wage: ................................................£5400/- (Salaried)

Total Earnings is >£18,600/-

My question is that,

1. if this income can be combined? i.e. I am self employed and she is Employed by myself. If so, under which Category of the Application form?

2. Does my partner need to present 12 wage slips or 6 slips?

3. if we apply for 'Marriage Tax Allowance' would it have any issues?

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Also, for her FLR (M) switching she used A1 Trinity English test certificate. Now I believe she will have to have A2 English certificate. If instead she passes B1, would it also be accepted in place of A2 English Test during her extension?

Thanks