The financial requirement can often be the most complicated aspect of any partner or spouse visa application. In this article, we consider how to meet the financial requirement by relying on income from self-employment.
A spouse visa is a type of permission that allows the spouses or partners of British citizens, or those settled in the UK, to enter and/or live in the UK. There are several requirements to be met for this application, amongst those is the financial requirement. The financial requirement is often the most complicated aspect of any application, as it can be met in a number of different ways.
What is the financial requirement?
The minimum income requirement for partner visas has recently increased. As of 11 April 2024, applicants must demonstrate that their partner has an annual minimum income of £29,000, or that they and their partner have savings of at least £88,500. Where the applicant is in the UK with permission to work, their income may also be considered in addition to, or instead of, their partner's income.
There are transitional arrangements for those who applied for, or were granted, permission as spouses or partners prior to 11 April 2024. The financial requirement in such cases continues to be a minimum income requirement of £18,600, or £62,500 if relying on cash savings, provided they are applying with the same partner.
Self-employment and the minimum income requirement
The types of self-employment recognised by the Immigration Rules for a partner visa are as follows:
- Sole traders – where the business is owned and run by one individual.
- Partnership – where the business is owned and run by two or more individuals.
- Franchise – a business ran under an established business model.
Applicants may also rely on them, or their partner, being a director or employee of a specified limited company in the UK. A specified limited company is a company where shares are held by the applicant, their partner, or listed family members, directly or indirectly.
How is income from self-employment considered?
Self-employment income can be relied on from either the last full financial year, this is referred to in the Immigration Rules as Category F, or by relying on the average income from the last two full financial years, referred to in the Immigration Rules as Category G. Both categories allow for the self-employment income to be that of the partner or the applicant, provided they are permitted to be self-employed in the UK.
Whether to apply under Category F or G will usually be determined by whether the financial requirement can be met by relying on one financial year or not. In general, Category G is likely to be relied on where the financial requirement cannot be met under Category F.
When does the tax year start?
When relying on income as a sole trader, the financial year runs from 6 April to 5 April of the following year, as per the UK tax year. Where the applicant or their partner is relying on self-employment from overseas, the financial year relied upon will be dictated by the taxation system of that country.
When relying on income as a director or employee (or both) of a specified limited company, the financial year is determined by the 12-month accounting period of that company.
What documents are required?
The type of documents required are set out in Appendix FM-SE of the Immigration Rules, and will depend on which category the applicant is relying on. The documents to be provided also differ if they are applying as a sole trader, as a partner in a franchise, or a director, employee (or both) of a specified limited company. It is important that the documents provided are specific to the applicant or their partner's individual circumstances. Failure to provide the correct documentation may result in the delay of the application process, or at worst, a refusal.
Can self-employment income be combined with other categories?
Self-employment income can be combined with income from salaried and non-salaried employment, non-employment income (for example rental income), and pension income. However, income from these sources must fall within the same financial year(s) as the self-employment period.
The guidance sets out the following example:
"If the applicant is in the UK with permission to work, to combine their salaried employment income with their partner's self-employment income, they must provide evidence of the income received from this salaried employment during their self-employed partner's relevant financial year or years..."
It is important to also note that the sources of income relied upon must be ongoing on the date of application.
UK spouse visa financial requirements: How our Immigration Solicitors can help
The above is just one of the methods by which an applicant can meet the financial requirement. Applications relying on self-employment income can be complex, however, our immigration experts have significant experience in such applications and can provide expert assistance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.