Post
by Davin » Sat Jan 23, 2021 3:55 pm
Thanks for your response. One further question about meeting financial requirements.
He is currently working on a day rate contract, via limited company but will be moving to Umbrella Company from next month but at the point of application end of July 2021, his time with umbrella company will be less than 6 months.( it will be about 5 months)
As per understanding after reading appendix FM, he will apply under category B and will have to provide evidence in 2 parts.
Part 1 is fine as his projected annual income using formula given in appendix FM will be higher than 18600
His total income from Umbrella company at the point of application, will be less than 18600
(If he can earn 18,600 from Umbrella company in 5 months then that he wouldn't have to show any other income but its unlikely)
So he will need to use income from limited company to show he earned 18600 in 12 months prior to application.
Question is what evidence will he need to provide for income from limited company? He pays himself a monthly salary and dividends which are declared on self assessment but that self assessment covers 12 months tax year period and some of those months will be outside of 12 month period prior to application.
Evidence: 1) Umbrella company contract plus payslips for 5 months (from Feb21 to July21 which is application date)
2) Is it annual accounts plus self assessment showing income of 18600+ on self assessment
(accounting period 01April2020 to 31March2021 and self assessment from 06April2020 to 05April2021). Can I please confirm if my interpretation is correct and evidence I have listed should be sufficient to fullfil income requirements or am I missing anything?
Regards,