Appendix FM and Appendix HM Armed Forces: minimum income requirement (accessible version)

Question 1

About this guidance

Accepted Answer

This guidance tells the decision maker how to decide family (partner and relevant child) applications that require a financial requirement assessment under Appendix FM and Appendix HM Armed Forces, where the applicant is seeking to meet the financial requirement using a gross annual income on its own or in combination with savings to meet what is generally referred to as a ‘minimum income requirement’.

This guidance is to be used for all applications decided on or after 11 April 2024.

Contacts

If you have any questions about the guidance and your line manager or senior caseworker cannot help you or you think that the guidance has factual errors then email the Family Policy Team.

If you notice any formatting errors in this guidance (broken links, spelling mistakes and so on) or have any comments about the layout or navigability of the guidance then you can email the Guidance Rules and Forms team.

Publication

Below is information on when this version of the guidance was published:

version 11.0
published for Home Office staff on 16 August 2024

Changes from last version of this guidance

Update to Currencies where FCDO CER should be used.

Question 2

Introduction

Accepted Answer

Since 9 July 2012, the Immigration Rules in Appendix FM have contained a financial requirement to be met by a person applying for entry clearance, permission to stay or settlement in the UK as a partner or dependent child of a person who is either:

a British Citizen
present and settled in the UK
in the UK with refugee leave or humanitarian protection

On 31 December 2020 the Immigration Rules were changed to include 2 further sponsorship categories:

in the UK with permission under Appendix EU, in accordance with paragraph GEN 1.3.(d)
in the UK with permission as a worker or business person under Appendix ECAA Extension of Stay, in accordance with paragraph GEN 1.3.(e)

On 31 January 2024 the Immigration Rules were changed to include a further sponsorship category:

in the UK with permission as a stateless person

Since 1 December 2013, the Immigration Rules in Appendix Armed Forces, updated to Appendix HM Armed Forces on 11 April 2024, have also contained a financial requirement to be met by a partner and child or children of a member of HM Armed Forces under the Immigration Rules. This guidance is for decision-makers deciding applications that need to meet the minimum income requirement (MIR).

For the purposes of this guidance ‘partner’ means an applicant’s fiancé or fiancée, proposed civil partner, spouse, civil partner, or unmarried partner.

Where the applicant is a child, references to ‘applicant’ should be read as appropriate to refer to the applicant’s parent, and references to ‘partner’ should be read as appropriate to refer to the applicant’s parent’s partner.

For the purposes of this guidance ‘decision-makers’ means Entry Clearance Officers and caseworkers.

From 28 July 2014, section 117B(3) of the Nationality, Immigration and Asylum Act 2002, inserted by section 19 of the Immigration Act 2014, reinforced the public interest under Article 8 of the European Convention on Human Rights (ECHR) in the financial independence of migrants, to prevent burdens on the taxpayer and promote integration.

The financial requirement involves an ‘adequate maintenance requirement’ or a ‘minimum income requirement’, depending on the application-type and the applicant’s circumstances.

On 22 February 2017, the Supreme Court in MM (Lebanon) & Others v SSHD [2017] UKSC 10 upheld the lawfulness of the minimum income requirement under Appendix FM, including a higher level of requirement where non-EEA national children are involved. The Court found the minimum income requirement is not a breach of the right to respect for private and family life under Article 8 of the ECHR and is not discriminatory. The Supreme Court endorsed the Secretary of State’s approach in setting a minimum income requirement for family migration that prevents burdens on the taxpayer and promotes integration.

In light of the Supreme Court judgment, Statement of Changes in Immigration Rules HC 290 was implemented on 10 August 2017 to give effect to the Court’s findings that, in circumstances where refusal of the application could otherwise breach ECHR Article 8, other credible and reliable sources of income or funds available to the couple should be taken into account under the minimum income requirement, and that Appendix FM needed to give direct effect to the Secretary of State’s duty under section 55 of the Borders, Citizenship and Immigration Act 2009 to have regard, as a primary consideration, to a child’s best interests in making an immigration decision affecting them.

On 11 April 2024, the minimum income threshold increased for new applicants under Appendix FM from the original £18,600 to £29,000. This was part of a package of measures announced by the Prime Minister and the Home Secretary on 4 December 2023 aimed at reducing net migration and curbing immigration abuse.

The increase to the MIR is being implemented incrementally in 3 stages bringing the threshold into line with the minimum general salary threshold for skilled workers (the 50th percentile of earnings for jobs which are eligible for skilled worker visas);

£38,700 at the time of announcement, by early 2025. The first rise implemented on 11 April 2024 is to £29,000 is the 25th percentile of the minimum general salary threshold, and the second stage increase which will be to the 40th percentile, currently £34,500.

The increases are designed to ensure that migration policy is supportive of the wider ambition for the UK to be a high-wage, high-productivity, high-skill economy and to ensure that families make a net positive impact on the economy, as well as contributing to the government target to lower net migration.

Transitional arrangements have been introduced for those already within these routes. Those who applied before 11 April 2024 will have their applications assessed against the threshold in place before that date, unless that will disadvantage them in comparison to new entrants to the routes, when the new minimum income requirement must instead be met.

Applications made after 11 April will no longer have the separate child component to the minimum income requirement, the MIR threshold is fixed regardless of the number of children within the family. There are transitional arrangements in place for those with children who are applying for further leave to remain to avoid the transitional arrangements being disadvantageous in comparison to the new flat-rate MIR. See: Calculating the minimum income requirement.

From 11 April 2024, the minimum income requirement to be met for HM Armed Forces personnel to sponsor a partner or dependent child or children increased from the original £18,600 to £23,496, which is the 2023/4 salary threshold for an Army (including the Brigade of Gurkhas) Private and their Royal Navy, Royal Marines and Royal Air Force equivalents on completion of training. This amount is fixed at

£23,496 regardless of the number of children within the family unit.

The different minimum income requirement for those under Appendix HM Armed Forces, takes into account the unique role played by members of HM Armed Forces, the nature of their service, and the sacrifices, dangers and risk of injury or death they face, and recognises the UK Government’s moral obligations to service personnel and their families under the Armed Forces Covenant.

Who needs to meet the financial requirement?

Applicants under Appendix FM and Part 8 of the Immigration Rules

The financial requirement needs to be met by those making an application in the following categories of Appendix FM:

Family Life as a Parent (Paragraphs E-ECC 2.1 – E-ECC.2.7 or E-LTRC 2.1 – E-LTRC 2.7)
Family Life as a Partner (Paragraphs E-ECP 3.1 – E-ECP 3.3 or E-LTR 3.1 – E-LTRP 3.7)
Family Life as a Child of a person with limited leave as a Partner (Paragraphs E-ECPT 3.1-3.2 or Paragraphs E-LTRPT 4.1-4.2)

Under paragraph A280(b) of Part 8 of the Immigration Rule s , the financial requirement also needs to be met by those applying from 9 July 2012 as a child under paragraph 314(i)(a) or (d) (unless both parents are settled), or paragraph 316A(i)(d) or (e), where a parent who has adopted the child, or is doing so, is themselves subject to the financial requirement because they have or are applying for entry clearance or permission to remain as a partner under Appendix FM. From 6 June 2024, such applications will be made under Appendix Adoption. Otherwise, the financial requirement applicable to the child applicant will be that contained in the relevant adoption rule in Part 8 or Appendix Adoption.

A different financial requirement applies, depending on the circumstances of the application.

Those applying under Appendix FM as a parent must meet the adequate maintenance test and demonstrate that their partner is able to maintain and accommodate themselves, the applicant and any dependants adequately in the UK without recourse to public funds.

The adequate maintenance test must also be met by those applying under Appendix FM on the 5-year partner route where the sponsor is in receipt of one or more of the following benefits:

Severe Disablement Allowance
Industrial Injuries Disablement Benefit
Attendance Allowance
Carer’s Allowance
Personal Independence Payment
Armed Forces Independence Payment or Guaranteed Income Payment under the Armed Forces Compensation Scheme
Constant Attendance Allowance, Mobility Supplement or War Disablement Pension under the War Pensions Scheme
Police Injury Pension
Child Disability Payment;
Adult Disability Payment

All other applicants to the 5-year partner route must meet the minimum income requirement.

Children applying under Appendix FM must meet the same financial requirement the parent they are applying to accompany or join must meet.

This guidance must be read alongside: Family life and exceptional circumstances.

Further guidance on the adequate maintenance requirement is available here: Appendix FM and Adult Dependent Relative Adequate maintenance and accommodation.

For further information on the background to the financial requirement in Appendix FM, please see the Statement of Intent on Family Migration published on 11 June 2012. This is available on GOV.UK: Statement of Intent: Family Migration.

For further information on the background to the increase to the minimum income requirement introduced on 11 April 2024, please see the Factsheet on net migration measures published on 21 December 2023: Net migration measures – further detail.

Applicants under Appendix HM Armed Forces

The financial requirement also needs to be met by those making an application under Appendix HM Armed Forces. The financial requirements are set out in paragraphs:

AF 16.1 to AF 17.7, and in paragraphs AF 31.1 to AF 32.5 for transitional arrangements

Those in receipt of certain specified benefits or funds (including an Armed Forces Independence Payment or Guaranteed Income Payment under the Armed Forces Compensation Scheme; or War Disablement Pension under the War Pensions Scheme), will continue to be exempt from the minimum financial requirement and must instead show they are able to adequately maintain themselves and dependent family members without recourse to public funds.

For the purpose of AF 16.1. (b), or AF 17.3. (b), the member of HM Armed Forces, or the HM Armed Forces service leaver, must be in receipt of one of the following:

Disability Living Allowance
Severe Disablement Allowance
Industrial Injury Disablement Benefit
Attendance Allowance
Carer’s Allowance
Personal Independence Payment
Adult Disability Payment (Scotland)
Armed Forces Independence Payment or Guaranteed Income Payment under the Armed Forces Compensation Scheme
Constant Attendance Allowance, Mobility Supplement or War Disablement Pension under the War Pensions Scheme; or Police Injury Pension
Police Injury Pension
Child Disability Payment
Adult Disability Payment

The applicant must show they meet the financial requirement as specified in Appendix FM-SE.

For further information on the background to the financial requirement in Appendix Armed Forces, please see the Statement of Intent published on 4 July 2013. This is available on the GOV.UK: Statement of Intent: Armed Forces.

Question 3

Calculating the minimum income requirement

Accepted Answer

Following the changes to the minimum income requirement (MIR) of 11 April 2024, different thresholds apply to applicants depending on the date the current application was submitted, when the applicant first successfully applied to the route and whether they are applying under Appendix FM or Appendix HM Armed Forces.

In summary, under Appendix FM, the thresholds must be applied as follows:

those who apply on or after 11 April 2024 who are new to the 5-year partner, fiancé or fiancée or proposed civil partner routes, or who are applying for permission to stay with a new partner, must meet the £29,000 threshold
those who apply on or after 11 April 2024 who are already within the 5-year partner, fiancé or fiancée or proposed civil partner routes and are applying for permission to stay with the same partner for which they were last granted permission benefit from transitional arrangements - they must meet the lower threshold of £18,600 (plus the child component), capped at a maximum of £29,000
those who apply before 11 April 2024 must meet the previous threshold of £18,600 (plus the child component, where relevant) - there is no cap in place for this cohort
a child applying under Appendix FM must meet the same threshold as the parent they are applying to accompany or join, regardless of the date of the child’s application

The following table supports decision makers to assess whether someone who is applying under Appendix FM to renew their permission as a partner on or after 11 April 2024 falls within the transitional arrangements.

Table 1: Transitional arrangements for Appendix FM partner applications made on or after 11 April 2024.

Did the applicant first apply as a partner, fiancé(e) or proposed civil partner before 11 April 2024?	Did that application result in a grant of permission as a fiancé(e), proposed civil partner or as a partner on the 5-year route?	Did they still have permission as a fiancé(e), proposed civil partner or as a partner on the 5-year route at the date of application?	Are they applying for permission to stay with the same partner for which they were last granted permission?	Minimum income requirement that applies
Yes	Yes	Yes	Yes	£18,600 (plus child component, capped at £29,000)
Yes	Yes	Yes	No	£29,000
Yes	Yes	No	No	£29,000
Yes	No	No	No	£29,000
No	No	No	No	£29,000

In summary, under Appendix HM Armed Forces, the thresholds must be applied as follows:

those who apply for the first time as a partner (including as a fiancé or fiancée or proposed civil partner), or child of HM Armed Forces, or an HM Armed forces service leaver on or after 11 April 2024, must meet the £23,496 threshold
those who have already applied for (and are being granted); or have been granted entry clearance or have permission as a partner (including as a fiancé or fiancée or proposed civil partner), or child under Appendix Armed Forces, before 11 April 2024, benefit from transitional arrangements - they must meet the lower threshold of £18,600 (plus the child component) - the threshold and child component is capped at £23,496 to avoid the transitional arrangements being disadvantageous in comparison to the new flat-rate MIR

Financial requirement for an applicant who is making their first application under Appendix FM on the partner route on or after 11 April 2024, or who is applying to remain with a new partner

Unless exempt, the applicant must meet the financial requirement in the form of a minimum income requirement.

From 11 April 2024, the minimum income requirement for someone new to the 5- year partner, fiancé or fiancée or proposed civil partner route is £29,000.

This threshold also applies where the applicant already has permission within the route when they made their application but is not applying to stay with the same partner for which they were last granted permission.

Unlike the previous threshold, this amount does not vary where there are dependent children within the family.

Transitional financial requirements under Appendix FM for an applicant who made their first application as a fiancé(e), proposed civil partner or partner before 11 April 2024 and who was granted permission as a fiancé(e), proposed civil partner or partner on the five-year route to settlement as a result of that application

To benefit from the transitional financial requirements within Appendix FM, an applicant must have:

permission as a partner on the five-year route to settlement, or as a fiancé or fiancée or proposed civil partner at the date of application
made their first application as a fiancé or fiancée, proposed civil partner or as a partner before 11 April 2024
been granted permission as a fiancé or fiancée, proposed civil partner or as a partner as a result of that application
be applying for permission to stay with the same partner for which they were last granted permission

Those who have permission on the 10-year route to settlement when they make their application are unable to benefit from the transitional arrangements.

Those applying on or after 11 April 2024 who do not meet the criteria set out above, must meet the increased threshold of £29,000, unless they are exempt.

Unless exempt, applicants who fall within the transitional arrangements must meet the minimum income requirement, without dependent children, of £18,600.

However, where the application includes sponsorship of a child at the same time (or at any time before the applicant reaches settlement), or where the sponsor is already sponsoring a child, the minimum income requirement increases and there is a higher financial requirement to be met.

An additional gross annual income of £3,800 is required for the first child sponsored in addition to the partner and an additional £2,400 for each further child. If this amount exceeds £29,000 due to the number of children in the family, the applicant will only need to provide evidence of a gross annual income of £29,000.

Table 2: The threshold that applies to families, dependent on the number of relevant children.

Those being sponsored	Gross level of financial requirements
Partner with no children subject to the income requirement	£18,600
1 child in addition to the partner	£22,400
2 children in addition to the partner	£24,800
3 children in addition to the partner	£27,200
4 or more children in addition to the partner	£29,000

The higher financial requirement applies to biological children, step-children (in certain circumstances), adopted children (in certain circumstances, including de facto adoptions), and children coming for the purpose of adoption who are subject to immigration control and applying for limited permission under Appendix FM or the paragraphs of Part 8 or, from 6 June 2024, Appendix Adoption.

Where a child was previously granted permission before they turned 18 when they were included in the higher financial requirement and remain dependent on their parent, the higher financial requirement will apply until the applicant partner qualifies for settlement, even if the child turns 18 before then. However, the 18 plus year old’s income and savings will be permitted to count towards the financial requirement provided they remain eligible to be considered as a child (so they have not formed an independent life).

The higher financial requirement does not apply to a child who:

is a British Citizen (including British citizenship acquired through adoption)
is an Irish Citizen
is a European Economic Area (EEA) national who was lawfully resident in the UK by the end of the transition period at 11pm GMT by 31 December 2020 and applied to the EU Settlement Scheme (EUSS) by the end of the grace period on 30 June 2021 and benefits from the saved EEA Regulations 2016 (as saved and modified by the Grace Period Statutory Instrument) until their EUSS application is finally determined
has been or is being granted permission under the EU Settlement Scheme (including settled status in accordance with paragraph EU2 or EU2A or pre- settled status in accordance with EU3 or EU3A of Appendix EU)
is settled in the UK or who qualifies for indefinite leave to enter
qualifies under Part 8 of the Immigration Rules in a category to which the financial requirement does not apply

Financial requirement for children applying on any date under Appendix FM

A child applying under Appendix FM must meet the same financial requirement as the parent they are applying to accompany or join, regardless of the date of the child’s application.

Where the parent is exempt from meeting the minimum income requirement, the child is also exempt.

Where the parent is applying on or after 11 April 2024 and is new to the 5-year partner, fiancé or fiancée or proposed civil partner route, or is applying to remain with a new partner, they must be assessed against the increased threshold of £29,000.

Where the parent meets the requirements to benefit from the transitional arrangements, the child will also benefit and must be assessed against the lower threshold of £18,600 (plus child component, capped at £29,000).

Applications submitted before 11 April 2024 under Appendix FM

Unless exempt, an applicant who submitted their application before 11 April 2024, must meet the minimum income requirement, without dependent children, of £18,600.

However, where the application includes sponsorship of a child at the same time (or at any time before the applicant reaches settlement), or where the sponsor is already sponsoring a child, the minimum income requirement increases and there is a higher financial requirement to be met.

An additional gross annual income of £3,800 is required for the first child sponsored in addition to the partner and an additional £2,400 for each further child. This threshold is uncapped and increases for each child within the family for whom the child component applies.

You must email the Family Policy Team before refusing an application where:

the application falls for refusal solely because the applicant is unable to meet the threshold
the threshold that applies exceeds £29,000 because there are 4 or more relevant children
the evidence shows the applicant could meet the requirement if the £29,000 threshold was applied

Table 3: The threshold that applies to families with up to 5 relevant children.

Those being sponsored	Gross level of financial requirements
Partner with no children subject to the income requirement	£18,600
1 child in addition to the partner	£22,400
2 children in addition to the partner	£24,800
3 children in addition to the partner	£27,200
4 children in addition to the partner	£29,600
5 children in addition to the partner	£32,000

The higher financial requirement applies to biological children, step-children (in certain circumstances), adopted children (in certain circumstances, including de facto adoptions), and children coming for the purpose of adoption who are subject to immigration control and applying for permission under Appendix FM, Appendix Armed Forces or the relevant paragraphs of Part 8 or Appendix Adoption.

Where a child was previously granted permission before they turned 18 when they were included in the higher financial requirement and remain dependent on their parent (who has permission as a partner), the higher financial requirement will apply until the applicant partner qualifies for settlement, even if the child turns 18 before then. However, the 18 plus year old’s income and savings will be permitted to count towards the financial requirement provided they remain eligible to be considered as a child (so they have not formed an independent life).

The financial requirement does not apply to a child who:

is a British Citizen (including British citizenship acquired through adoption)
is an Irish Citizen
is a European Economic Area (EEA) national resident in the UK with free movement rights under the Immigration (European Economic Area) Regulations 2016 for as long as those rights remain in force until the end of the grace period on 30 June 2021
has been or is being granted permission under the EU Settlement Scheme (including settled status in accordance with paragraph EU2 or EU2A and pre- settled status in accordance with EU3 and EU3A of Appendix EU)
is settled in the UK or who qualifies for indefinite leave to enter
qualifies under Part 8 or Appendix HM Armed Forces of the Immigration Rules in a category to which the financial requirement does not apply

First applications on or after 11 April 2024 as the partner or child of a member of HM Armed Forces or an HM Armed Forces service leaver

Applications made as the partner or child of a member of HM Armed Forces or an HM Armed Forces service leaver on or after its introduction on 11 April 2024, will be subject to the new Armed Forces salary threshold of £23,496.

Transitional arrangements for those who have already applied for permission as the partner or child of a member of HM Armed Forces or an HM Armed Forces service leaver

Those who have already applied for (and are being granted) or have permission as a partner (including as a fiancé or fiancée or proposed civil partner), or child of HM Armed Forces, or an HM Armed forces service leaver, before 11 April will benefit from transitional arrangements whereby they can continue to meet the MIR in place before 11 April. They must meet the lower threshold of £18,600 (plus the child component), capped at a maximum of £23,493. This is to avoid the transitional arrangements being disadvantageous in comparison with the new flat-rate MIR.

Question 4

Operating principles

Accepted Answer

Meeting the financial requirement

Under Appendix FM, Appendix HM Armed Forces and Appendix FM-SE, the applicant must meet:

the level of the financial requirement applicable to their application
the requirements specified as to:
- the permitted sources of income/savings
- the time periods and permitted combinations of sources applicable to each permitted source relied upon
- the evidence required for each permitted source relied upon

Income and cash savings must be in the name of the applicant, their partner or jointly or the dependent child once the child has turned 18 years of age.

All employment or self-employment income must come from working legally. All income and savings must be lawfully derived. Where an application relies on the earnings of an applicant in the UK, they must be here with permission to work and their hours of work must not exceed any limit specified in their conditions of leave. Earnings from employment undertaken by an applicant in the UK when they did not have permission to enter or stay and permission to work (excluding those where paragraph 39E of the rules applies), cannot be included.

Where the gross (pre-tax) amount of any income cannot be properly evidenced, the net (post-tax) amount will be counted, including towards a gross income requirement.

Under paragraph 1(n) of Appendix F M -S E the gross amount of any cash income may be counted where the person’s specified bank statements show the deposit of the full net amount which relates to the gross amount shown on their payslips (or in the relevant specified evidence provided in addition to the specified bank statements in relation to non-employment income). Otherwise, only the net amount shown on the specified bank statements may be counted.

Those wishing to rely on cash income to sponsor an application subject to the financial requirement may need to change the way they manage their money and bank the full net amount so that they can then rely on the gross amount of that income in sponsoring the application. Like the other evidential requirements of Appendix FM-SE which seek to maintain the integrity of the system for all genuine applicants and sponsors, it is important that those wishing to rely on the gross amount of their cash income from employment corroborate this income through their bank statements, as well as the required payslips and employer’s letter.

The level of the financial requirement

Decision-makers cannot exercise any discretion or flexibility with regard to the level of the financial requirement that must be met. It is a matter of public policy to operate a financial requirement based on a minimum income requirement for the sponsorship of partners and children. It must be clear and consistently applied in all cases.

The applicant has to demonstrate and evidence the income and or savings required to meet the level of the financial requirement relevant to their application. They do not need to provide information in the first instance about any income or savings which they and or their partner may have beyond this.

The onus is on the applicant to demonstrate the financial requirement is met in their case. The decision-maker will not generally be expected to make further enquiries or request further information in an effort to establish whether the financial requirement is met. However, the decision-maker may need to contact the applicant where it appears they may have misunderstood which threshold applies to them and so has not provided all the relevant evidence with their application.

Evidence requirements: general information

These general evidence requirements are based on paragraph 1 of Appendix F M - S E.

Promises of support from a third party cannot generally be counted towards the financial requirement. The applicant and their partner must generally have the required resources under their own control, not somebody else’s. (a gift from a third party can be the source of cash savings held by the applicant, their partner or the couple jointly, provided that the money has been held by them for at least the 6 months prior to the date of application and is under their control). See the section of the guidance on exceptional circumstances which shows the scope to rely on a credible guarantee of sustainable financial support from a third party in order to meet the financial requirement.

Income can be paid into, or cash savings held in, any bank/savings account in the name of the applicant, the applicant’s partner or both jointly, provided that the account is held in a financial institution that is regulated by the Financial Services Authority or the appropriate regulatory body for the country in which that institution is operating; and the financial institution does not appear on the list of excluded institutions under Appendix Finance of the Immigration Rules.

Bank statements must be on official bank stationery. Alternatively, electronic bank statements can also be accepted for all bank accounts (the account itself does not have to be exclusively online) as long as they are either accompanied by a letter from the bank on its headed stationery confirming that the documents are authentic or which bear the official stamp of the issuing bank on every page.

The bank statements must cover the specified periods as described in the Immigration Rules for each of the sources of income relied upon.

As an alternative to a bank statement we will also accept:

a building society statement or pass book
a letter from the bank or building society
a letter from a financial institution regulated by the Financial Conduct Authority and the Prudential Regulation Authority or, for overseas accounts, the appropriate regulatory body for the country in which the institution operates and the funds are located - the financial institution must not appear on the list of excluded institutions under Appendix Finance of the Immigration Rules

This is provided that the requirements in paragraph 1(aa)(1)-(3) of Appendix F M -S E are met: These are:

the requirements in paragraph 1(a)(i)-(iv) are met as if the document were a bank statement
a building society pass book must clearly show:
- the account number
- the building society’s name and logo
- the information required on transactions, funds held and time period or periods or as otherwise specified in Appendix FM-SE in relation to bank statements
a letter must be on the headed stationery of the bank, building society or other financial institution and must clearly show:
- the account number
- the date of the letter
- the financial institution’s name and logo
- the information required on transactions, funds held and time period or periods or as otherwise specified in Appendix FM-SE in relation to bank statements

Payslips must be original formal payslips issued by the employer and showing the employer’s name, or be accompanied by a letter from the employer, on their headed paper and signed by a senior official confirming they are authentic.

Where Appendix FM-SE requires the applicant to provide specified evidence relating to a period which ends with the date of application, that evidence must be dated no earlier than 28 days before the date of application.

Any documentary evidence must be the original (not a copy) unless indicated otherwise in Appendix FM-SE.

Where a specified document is not in English or Welsh, the applicant must provide the original and a full translation that can be independently verified by the decision- maker. This translation must include contact details for the translator or the translation company and confirmation that it is an accurate translation of the original document. It must also be dated and include the full name and original signature of the translator or an authorised official from the translation company. For applications for permission to remain or indefinite leave to remain (but not for entry clearance) certification by a qualified translator and confirmation of the translator/translation company’s credentials must also be provided.

Under paragraph GEN.1.5. of Appendix FM, where decision-makers have reasonable cause to doubt the genuineness of any information or document submitted in support of an application and, after taking reasonable steps, are unable to verify that it is genuine, the information or document will be discounted for the purposes of the application.

Decision-makers are able to refuse the application if they have evidence that the applicant or partner has deceived them as to the level and/or source of income or has withheld relevant information, for example, that the cash savings relied upon are a loan.

Where there is a requirement to provide evidence from a UK government department, this can be met by evidence from a body performing an equivalent function on behalf of a Devolved Administration.

Evidential flexibility

Under Appendix FM-SE there is discretion for decision-makers to defer an application pending submission of missing evidence or the correct version of it, within a reasonable deadline set for this. Decision-makers will not have to defer where they do not think that correcting the error or omission will lead to a grant.

Decision-makers are also able to grant an application despite minor evidential problems (but not where specified evidence is missing entirely).

There is also discretion for decision-makers where evidence cannot be supplied because it is not issued in a particular country or has been permanently lost.

Decision-makers have general discretion to request additional information or evidence before making a decision.

It can be helpful to the Tribunal in any appeal against a refusal based on a failure to meet the financial requirement for lack of provision of specified evidence under Appendix FM-SE if the refusal notice or letter briefly explains whether and why the evidential flexibility provisions have or have not been applied. A refusal notice or letter should contain such a brief explanation where the applicant, in making their application, has asked the decision-maker to apply the evidential flexibility provisions and the decision-maker has refused to do so: see. Sultana and Others (rules: waiver/further enquiry; discretion) [2014] UKUT 540 (IAC).

In deciding an application in relation to which this appendix states that specified documents must be provided, the Entry Clearance Officer or Secretary of State (‘the decision-maker’) will consider documents that have been submitted with the application, and will only consider documents submitted after the application where sub-paragraph (b), (e) or (f) applies.

If the applicant has submitted:

a sequence of documents and some of the documents in the sequence have been omitted (for example, if one bank statement from a series is missing)
a document in the wrong format (for example, if a letter is not on letterhead paper as specified)
a document that is a copy and not an original document
a document which does not contain all of the specified information
has not submitted a specified document

the decision-maker may contact the applicant or his representative in writing or otherwise, and request the document or documents or the correct version or versions. The material requested must be received at the address specified in the request within a reasonable timescale specified in the request.

The decision-maker will not request documents where he or she does not anticipate that addressing the error or omission referred to in sub-paragraph (b) will lead to a grant because the application will be refused for other reasons.

If the applicant has submitted:

a document in the wrong format
a document that is a copy and not an original document

A document that does not contain all of the specified information, but the missing information is verifiable from:

other documents submitted with the application
the website of the organisation which issued the document
the website of the appropriate regulatory body

the application may be granted exceptionally, providing the decision-maker is satisfied that the document or documents are genuine and that the applicant meets the requirement to which the document relates. The decision-maker reserves the right to request the specified original document or documents in the correct format in all cases where sub-paragraph (b) applies, and to refuse applications if this material is not provided as set out in sub-paragraph (b).

Where the decision-maker is satisfied that there is a valid reason why a specified document or documents cannot be supplied, for example, because it is not issued in a particular country or has been permanently lost, he or she may exercise discretion not to apply the requirement for the document or documents or to request alternative or additional information or documents be submitted by the applicant.

Before making a decision under Appendix FM or this appendix, the decision-maker may contact the applicant or their representative in writing or otherwise, to request further information or documents. The material requested must be received at the address specified in the request, within a reasonable timescale specified in the request.

Conversion of foreign currency

Income or cash savings in a foreign currency will be converted to pounds sterling (£) using the closing spot exchange rate which appears on www.oanda.co m on the date of application. Where there is income or cash savings in different foreign currencies, each will be converted into pounds sterling (£) before being added together, and then added to any UK income or savings, to give a total amount. Any fluctuation in the exchange rate prior to the date of application will be disregarded: the decision- maker will base the conversion of the foreign currency income or cash savings into sterling on the exchange rate as at the date of application.

Where OANDA cannot, be used for currency conversion the FCDO consular rate of exchange (CER) should be used. The FCDO CER is set centrally in the UK and reviewed each month in line with changes to exchange rates.

Currencies where FCDO CER should be used

Iranian Rials (IRR) – due to a discrepancy with the available OANDA rate
Syrian Pounds (SYP) – due to the currency not being supported by OANDA
Mongolian Tugrik (MNT) – due to the currency not being supported by OANDA

Using the FCDO CER

You can check the current month’s CER on GOV.UK: FCDO consular services abroad: exchange rates - GOV.UK (www.gov.uk ).

If you need to check the FCDO CER for a previous month, you must use the National Archive website and select the relevant date corresponding to the date required in Appendix FM-SE: Archive Timeline - UK Government Web Archive (nationalarchives.gov.uk).

Further information can be found at Financial requirement: caseworker guidance.

Meeting the financial requirement through ‘adequate maintenance’

Where the applicant’s partner, or where the applicant is a child, their parent’s partner is in receipt of any of the following benefits or allowances in the UK, the applicant will be able to meet the financial requirement at that application stage by providing evidence of “adequate maintenance” rather than meeting an income threshold:

Carer’s Allowance
Disability Living Allowance
Severe Disablement Allowance
Industrial Injuries Disablement Benefit
Attendance Allowance
Personal Independence Payment
Armed Forces Independence Payment or Guaranteed Income Payment under the Armed Forces Compensation Scheme
Constant Attendance Allowance, Mobility Supplement or War Disablement Pension under the War Pensions Scheme
Police Injury Pension
Adult Disability Allowance
Child Disability Allowance

If the applicant’s partner is in receipt of one of the above benefits or allowances on behalf of their child, the applicant will be able to qualify by meeting the financial requirement through ‘adequate maintenance’, with evidence specified in Appendix F M -S E.

All the following must be provided:

official documentation from the Department for Work and Pensions or Veterans Agency or Police Pension Authority or Social Security Scotland confirming the current entitlement and the amount currently received
at least one personal bank statement in the 12-month period prior to the date of application, showing payment of the benefit or allowance to which the person is currently entitled into their account

The minimum income threshold will apply at the next application stage if the applicant’s partner is no longer in receipt of one of these benefits or allowances at that time.

The relevant guidance for Appendix FM applications is set out in Appendix FM and Adult Dependent Relative Adequate maintenance and accommodation.

Some applicants under Appendix Armed Forces are already required to demonstrate that they will be adequately maintained without recourse to public funds and there is no assessment needed of whether they are exempt from minimum income threshold because the minimum income threshold does not apply to their category of application. See Appendix HM Armed Forces and Appendix International Armed Forces for details of who falls into this group. The relevant guidance is set out in Appendix FM and Adult Dependent Relative Adequate maintenance and accommodation.

Question 5

Sources for meeting the financial requirement

Accepted Answer

Where the applicant has to meet the minimum income requirement, the financial requirement can generally be met in the following 5 ways:

income from salaried or non-salaried employment of the partner (and/or the applicant if they are in the UK with permission to work) - this is referred to as Category A or Category B, depending on the employment history
non-employment income, for example, income from property rental or dividends from shares - this is referred to as Category C
cash savings of the applicant’s partner and/or the applicant, above £16,000, held by the partner and/or the applicant for at least 6 months and under their control - this is referred to as Category D
state (UK or foreign), occupational or private pension of the applicant’s partner and/or the applicant - this is referred to as Category E
income from self-employment, and income as a director or employee of a specified limited company in the UK, of the partner (and/or the applicant if they are in the UK with permission to work) - this is referred to as Category F or Category G, depending on which financial year or years, is or are being relied upon

In exceptional circumstances in which refusal of the application could otherwise breach ECHR Article 8 and paragraph GEN.3.1. of Appendix FM applies, other credible and reliable sources of income, financial support or funds available to the couple may be taken into account under the minimum income requirement, under paragraph 21A of Appendix FM-SE. For further info see: Exceptional circumstances.

Sources of income not permitted

Income from the following sources will not be counted towards the financial requirement:

Question 6

Salaried and non-salaried employment

Accepted Answer

Category A: With current employer for 6 months or more - person residing in the UK

Where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in salaried employment at the date of application and has been with the same employer for at least 6 months prior to the date of application, they can count their gross annual salary towards the financial requirement. In doing so they must have been paid throughout the period of 6 months prior to the date of application at a level of gross annual salary which equals or exceeds the level relied upon in the application.

Gross income from non-salaried employment will be counted on the same basis as income from salaried employment where the person has been with the same employer for 6 months or more at the date of application.

Non-salaried employment includes that paid at an hourly or other rate (and the number and/or pattern of hours required to be worked may vary) or paid an amount which varies according to the work undertaken. Salaried employment includes that paid at a minimum fixed rate (usually annual) which is usually subject to a contractual minimum number of hours to be worked.

The only difference in Category A between salaried and non-salaried employment is how gross annual salary or employment income is calculated:

Where the person is in salaried employment – they must have been paid throughout the period of 6 months prior to the date of application at a level of gross annual salary which equals or exceeds the level relied upon in the application. Therefore, the figure used towards the requirement will be the lowest level of annual salary received during the 6-month period.

Where the person is in non-salaried employment – the level of gross annual employment income relied upon in the application will be the annual equivalent of the person’s average gross monthly income from non-salaried employment in the 6 months prior to the date of application (where that employment was held throughout that period).

To calculate this annualised average for non-salaried employment in Category A the following calculation should be used:

(Total gross income from employment held throughout the 6-month period, divided by 6) multiplied by 12 = Income from non-salaried employment that can be counted towards the financial requirement.

If necessary, to meet the level of the financial requirement applicable to the application, a person in salaried or non-salaried employment with the current employer for 6 months or more at the date of application can add to this:

the gross amount of any specified non-employment income received by the applicant’s partner, the applicant or both jointly in the 12 months prior to the application, provided they continue to own any asset on which that income was based (for example, property, shares) at the date of application
an amount based on the cash savings above £16,000 held by the applicant’s partner, the applicant or both jointly for at least the 6 months prior to the date of application and under their control - at the entry clearance/initial permission to stay stage and the further permission to stay stage, the amount above £16,000 must be divided by 2.5 (to reflect the 2.5 year or 30-month period before the applicant will have to make a further application) to give the amount which can be added to income: at the indefinite leave to remain stage, the whole of the amount above £16,000 can be added to income
the gross annual income received by the applicant’s partner or the applicant from any state (UK or foreign), occupational or private pension

Therefore income under Category A can be combined with Category C: non- employment income, Category D: cash savings and Category E: pension if necessary to meet the financial requirement.

The case studies set out below are based on the £18,600 threshold. The principle of these examples also applies to £29,000 threshold.

Case studies – Category A: With current employer for 6 months or more – person residing in the UK

Example (a)

In an application for entry clearance where the applicant must meet the £18,600 threshold, the applicant’s partner is in salaried employment at the date of application and has been working for the same employer for 7 months prior to the date of application. For the first 3 months of the 6 months prior to the date of application his gross annual salary was £15,500. Then he was promoted by his employer so that for the next 3 months (those being the 3 months immediately prior to the date of application) his gross annual salary was £18,700. The applicant’s partner is relying on Category A and so must have earned a level of gross annual salary which equals or exceeds the level relied upon in the 6 months prior to the date of application.

Therefore the figure that can be used towards the requirement will be the lowest level of annual salary received during this 6 month period prior to the date of application which is £15,500. The couple have no other source of income or savings and so the financial requirement is not met.

Example (b)

In an application for permission to stay where the applicant must meet the £18,600 threshold, the applicant’s partner is in employment at the date of application and has been working for the same employer for at least 6 months prior to the date of application. They earn a gross annual salary of £8,000 a year and have been earning the same salary for at least that 6-month period. They receive non- employment income from a rental property and in the 12 months prior to the date of application they received a gross rental income of £9,000; they continue to own the property. The applicant’s partner’s total income is therefore £17,000.

The applicant’s partner also has cash savings of £25,000. She can meet the savings requirements of the rules, including having held those savings for at least 6 months prior to the date of application and the savings being under her control. The amount of savings that can be used towards the financial requirement is £3,600: (£25,000 – £16,000) ÷ 2.5 = £3,600.

Using a combination of categories A, C and D, the applicant’s partner has £20,600 in income and savings (£17,000 income + £3,600 savings) which can be used to meet the financial requirement of £18,600.

Example (c)

In an application for permission, where the applicant must meet the £18,600 threshold, the applicant’s partner is in non-salaried employment in the UK. He works on a weekly rota basis and does not receive any paid holidays. He has earned £450 each week in the same job for the last 7 calendar months, except for the week prior to the date of application when he earned £150 owing to a holiday.

Non-salaried income = (gross earnings from employment held throughout the 6 month period, divided by 6) x 12

= ((25 weeks x 450 + 1 week x 150) ÷ 6) x 12

= (11,400 ÷ 6) x 12

= £22,800

The financial requirement is met through Category A non-salaried employment.

Where the applicant’s partner is returning with the applicant to the UK to work, they must meet 2 requirements to rely on Category A. First, the applicant’s partner must be in employment at the date of application and have been with the same employer for at least 6 months prior to the date of application. They must have been paid throughout that period of 6 months at a level of gross annual salary or income which equals or exceeds the level relied upon in the application. Their gross annual salary or employment income can be combined with any or all of the sources at section 5.1.6. in order to meet the financial requirement. Income under Category A can be combined with Category C: non-employment income, Category D: cash savings and Category E: pension if necessary to meet the financial requirement.

As with employment in the UK, gross income from non-salaried employment held throughout the 6 month period will be calculated on the basis set out in section salaried and non-salaried employment).

Second, the applicant’s partner must also have a confirmed offer of salaried or non- salaried employment in the UK, starting within 3 months of their return. This must have a gross annual starting salary or in-non salaried employment a gross annual income from that employment. Based on the rate or amount of pay and the standard or core hours to be worked must be provided by the employer in the evidence sufficient to meet the financial requirement, alone or in combination with any or all the sources in sections (Category C: non-employment income, Category D: cash savings and Category E: pension).

Where the applicant’s partner is returning with the applicant to the UK to salaried or non-salaried employment, and is in self-employment outside the UK, they must meet the first requirement in the salaried and non-salaried section through their self- employment income (see this salaried and non-salaried section of this guidance for how this income is calculated). The second requirement, regarding a confirmed job offer in the UK, must be met on the basis set out in salaried and non-salaried.

The case studies set out below are based on the £18,600 threshold. The principle of these examples also applies to £29,000 threshold.

Example (a)

In an application for permission where the applicant must meet the £18,600 threshold, the applicant’s partner currently works in Australia but is returning with the applicant to the UK to work. The applicant’s partner has been working for the same employer for the last 5 years in Australia earning a gross annual salary of £25,000. The applicant’s partner has a confirmed job offer to start in the UK in 8 weeks of their return, with an annual starting salary of £30,000. Therefore the applicant’s partner has both current gross annual salary and a future starting salary which meet the financial requirement under Category A.

Example (b)

If, in the scenario at (a) above, the applicant’s partner overseas had been unemployed for 12 months, the financial requirement could not be met using Category A. This would be true even if they had a job offer in the UK starting in 8 weeks of their return with a starting salary of £30,000. The applicant’s partner can only rely on the income from a job offer in the UK under Category A if they have been in employment overseas at the required level of income for at least 6 months at the date of application.

Example (c)

The applicant’s partner currently works in Japan and is returning with the applicant to the UK to work. She has been working for the same employer for 2 years in Japan and earns a weekly wage. She has earned £495 each week for the last year.

Current non-salaried income = (gross earnings from employment held throughout the 6-month period, divided by 6) x 12

= ((26 weeks x 495) ÷ 6) x 12

= (12,870 ÷ 6) x 12

= £25,740

She has a confirmed offer of non-salaried employment in the UK to start within 5 weeks of her return (paying £385 a week over a 12-month contract), so the annual starting income for the job is equivalent to £20,000 a year.

The financial requirement is met through Category A non-salaried employment.

Example (d)

The applicant’s partner currently works in Canada as a self-employed carpenter. She is returning with the applicant to the UK to work as a salaried employee of a large construction firm. The applicant’s partner has provided all of the specified evidence for her self-employment income for the last financial year. Her tax return shows her gross income as being £19,200 for that year. She has a confirmed job offer with the construction firm to start within 10 weeks of her return to the UK. The annual starting salary for this job is £20,500.

The applicant meets the financial requirement using Category A.

Category B: Less than 6 months with current employer or variable income – person residing in the UK

This category can be used where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in salaried or non-salaried employment at the date of application, but has not been with the same employer and/or not earning the income level relied upon in the application for at least 6 months prior to the date of application. It can therefore be used by those who have been with their current employer for less than 6 months, or who have been with their current employer for at least 6 months but earning a variable income and wish to be considered in this category rather than under Category A.

Where the applicant wishes to rely on their own employment income (where they are in the UK with permission to work) as well as that of their partner, the employment and non-employment income of both parties must be calculated under Category A or Category B; those categories cannot be used in combination. See example (d) below.

Under Category B, the financial requirement must be met and evidenced in 2 parts.

First, where the applicant’s partner and/or the applicant (if they are in the UK with permission to work) is in salaried employment at the date of application and has been with the same employer, or earning the amount relied upon, for less than the last 6 months, they can count the gross annual salary at the date of application towards the financial requirement. There is no required minimum period for this current employment, provided that the requirements for specified evidence under paragraph 2 of Appendix FM-SE can be met in respect of it.

Gross income from non-salaried employment will be counted on the same basis as income from salaried employment where the person has been with the same employer, or earning the amount relied upon, for less than 6 months at the date of application.

Non-salaried employment includes that paid at an hourly or other rate (and the number and/or pattern of hours required to be worked may vary) or paid an amount which varies according to the work undertaken. Salaried employment includes that paid at a minimum fixed rate (usually annual) which is usually subject to a contractual minimum number of hours to be worked.

The only difference in Category B between salaried and non-salaried employment is how gross annual salary or employment income at the date of application is calculated.

Where the person is in salaried employment – the level of gross annual salary will be as at the date of application. This must be evidenced by the latest payslip or the signed contract of employment (if a payslip does not provide this information).

Where the person is in non-salaried employment – the level of gross annual employment income relied upon in the application can be no greater than the annual equivalent of the person’s average gross monthly income from that non-salaried employment.

To calculate this annualised average for non-salaried employment in Category B the following calculation should be used:

(Total gross income from non-salaried employment in the period prior to the date of application for which that employment has been held) divided by the number of months and multiplied by 12 (or by the number of weeks and multiplied by 52 where payment is weekly, or by the number of days and multiplied by 365 where payment is daily) = Income from non-salaried employment that can be counted towards the financial requirement.

If necessary to meet the level of the financial requirement applicable to the application, the applicant can add to this:

the gross amount of any specified non-employment income received by the applicant’s partner, the applicant or both jointly in the 12 months prior to the application, provided they continue to own the relevant asset (for example, property, interest from shares) at the date of application
an amount based on the cash savings above £16,000 held by the applicant’s partner, the applicant or both jointly for at least the 6 months prior to the date of application and under their control
at the entry clearance/initial permission to stay stage and the further permission to stay stage, the amount above £16,000 must be divided by 2.5 (to reflect the 2.5 year or 30-month period before the applicant will have to make a further application) to give the amount which can be added to income. At the indefinite leave to remain stage, the whole of the amount above £16,000 can be added to income
the gross annual income from any State (UK or foreign), occupational or private pension received by the applicant’s partner or the applicant

Second, the person must in addition have received in the 12 months prior to the date of application the level of income required to meet the financial requirement, based on:

the gross amount of salaried or non-salaried employment income of the applicant’s partner (in the UK or overseas) and/or the applicant (if they are in the UK with permission to work)
the gross amount of any specified non-employment income received by the applicant’s partner, the applicant or both jointly, provided they continue to own the relevant asset (for example, property, interest from shares) at the date of application
the gross amount of any State (UK or foreign), occupational or private pension received by the applicant’s partner or the applicant

Under Category B, the assessment of the financial requirement is based on both:

the gross annual salary or income from salaried or non-salaried employment at the date of application - this source can be combined with Category C: non- employment income , Category D: cash savings and Category E: pension
the actual amount of gross income received from any salaried or non-salaried employment in the 12 months prior to the application - this can be combined with the actual gross income received from Category C: non-employment income and Category E: pension over the same 12-month period. Category D: cash savings cannot be used under (2)

The case studies set out below are based on the £18,600 threshold. The principle of these examples also applies to £29,000 threshold.

Case studies – Category B: Less than 6 months with current employer or variable income – person residing in the UK

Example (a)

The applicant must meet the £18,600 threshold. Their partner works in the UK. She started a new job 3 months prior to the date of application and her gross annual salary is £22,000. She meets part (1) of the calculation for Category B because she is in salaried employment at the date of application and her gross annual salary at the date of application meets the financial requirement.

In addition, she must have received in the 12 months prior to the application the level of income required to meet part (2) of the calculation for Category B. Before starting her new job, she worked for another company for 7 months during the last 12 months. Including her current and previous job, the total amount she has earned from employment in the last 12 months is £20,000.

The financial requirement is met under Category B because the applicant’s partner is currently in a job paying at least £18,600 a year and has earned more than £18,600 from employment in the last 12 months.

Example (b)

The applicant must meet the £18,600 threshold. Their partner works in the UK. She started a new job 3 weeks ago. Her gross annual salary is £20,000. She meets part (1) of the calculation for Category B because she is in salaried employment at the date of application and her gross annual salary at the date of application meets the financial requirement.

In addition, she must have received in the 12 months prior to the application the level of income required to part (2) of the calculation for Category B. But she has had no other job in the last 12 months as she has been travelling.

The financial requirement is met under part (1) of Category B because the applicant’s partner is currently in a job paying at least £18,600, but not under part (2) as she has not earned at least £18,600 from employment in the last 12 months.

Therefore, the applicant cannot meet the financial requirement using Category B.

Example (c)

The applicant must meet the £18,600 threshold. Their partner lives in the UK and is a fashion photographer who does short-term contract work for several agencies. He has periods without work and the amount he is paid varies from job to job. Over the last 12 months he has earned a total of £20,000. In the most recent 6 months his gross earnings are as follows: £3500, £0, £0, £2300, £3400, £500. The application is made on the basis of meeting the financial requirement under Category B non- salaried employment.

Under part (1) of Category B, the applicant’s partner’s current annual employment income

= (gross earnings over the last 6 months, divided by 6) multiplied by 12

= ((3500+0+0+2300+3400+500) ÷ 6) x 12

= (9,700 ÷ 6) x 12

= £19,400

Under part (2) of Category B, the applicant’s partner’s actual employment income over last 12 months

= £20,000

Both part (1) and part (2) of Category B are met.

Example (d)

The applicant must meet the £18,600 threshold. They have permission to work. They and their partner are both in employment in the UK at the date of application.

The applicant earns £12,000 a year and has been earning that level of income with the same employer for 17 months. The applicant’s partner has recently moved to a new job earning £10,000 a year and has only been in her current employment for 3 months. However, she has received £12,000 in employment income in the 12 months prior to the date of application.

If the applicant’s partner had been in her current job at that level of annual earnings for at least 6 months, the applicant could have combined their current levels of annual earnings under Category A: £12,000 + £10,000 = £22,000. Instead, the applicant must use Category B: under part (1) their combined level of current earnings is £22,000; under part (2) their combined income from employment over the last 12 months is £12,000 + £12,000 = £24,000.

Both part (1) and part (2) of Category B are met.

Where the applicant’s partner is returning with the applicant to the UK to work, they do not have to be in employment at the date of application to rely on Category B. Instead, the financial requirement must be met and evidenced in 2 parts in the following way.

First, the applicant’s partner must have a confirmed offer of salaried or non-salaried employment to return to in the UK (starting within 3 months of their return). This must have a gross annual starting salary (or in non-salaried employment a gross annual income from that employment, based on the rate or amount of pay and the standard or core hours to be worked provided by the employer in evidence) sufficient to meet the financial requirement, alone or in combination with any or all the sources at section (Category C: non-employment income, Category D: cash savings and Category E: pension).

Second, the couple returning to the UK must in addition have received in the 12 months prior to the date of application the level of income required to meet the financial requirement, based on:

the gross amount of salaried or non-salaried employment income overseas of the applicant’s partner
the gross amount of any specified non-employment income received by the applicant’s partner, the applicant or both jointly, provided they continue to own the relevant asset (for example, property, interest from shares) at the date of application
the gross amount of any State (UK or foreign), occupational or private pension received by the applicant’s partner or the applicant

Under Category B, the assessment of the financial requirement will be based on both:

the gross annual salary or income of the applicant’s partner’s confirmed offer of salaried or non-salaried employment in the UK. This source can be combined with Category C: non-employment income, Category D: cash savings and Category E: pension
the actual amount of gross income received from the applicant’s partner’s salaried or non-salaried employment overseas in the 12 months prior to the date of application - this can be combined with the actual gross income the couple received from Category C: non-employment income and Category E: pension over the same 12-month period. Category D: cash savings cannot be used under (2)

The case studies set out below are based on the £18,600 threshold. The principle of these examples also applies to £29,000 threshold.

Example (a)

The applicant must meet the £18,600 threshold. Their partner currently lives in China and is returning to the UK with the applicant. The applicant’s partner left her job in China 3 months ago to prepare for the move to the UK. She is not employed at the date of the application. From the job that she left, she received an income of £19,000 in the 12 months prior to the application. So part (2) of the Category B calculation for a returning sponsor is met because she received in the 12 months prior to the application the amount of income required to meet the level of the financial requirement.

In addition, the applicant’s partner must also, under part (1) of the Category B calculation, have a confirmed offer of salaried or non-salaried employment to return to in the UK (starting within 3 months of her return). This must have an annual starting salary or income sufficient to meet the financial requirement, alone or in combination with other sources. She does have a confirmed job offer in the UK starting within 7 weeks of her return, with an annual starting salary of £24,000.

Part (1) of the Category B calculation for a returning sponsor is also met because she has a confirmed offer of employment in the UK to return to which has an annual starting salary sufficient to meet the financial requirement.

Salaried and non-salaried employment: general requirements

Employment can be full-time or part-time.

Employment can be permanent, a fixed-term contract or with an agency.

Where the applicant’s partner is a serving member of HM Armed Forces and they are posted overseas, they will be considered as a person resident in the UK for the purposes of assessing their income from salaried or non-salaried employment. They will not be treated as an overseas sponsor returning to the UK. This ensures that, in line with the military covenant, they are not disadvantaged by their military service.

Where the applicant’s partner is a seafarer resident in the UK but spends most of their time working at sea and qualifies for the HMRC Seafarers Earnings Deduction (which is evidenced, for example, by a letter from their accountant or from HMRC), they will be considered as a person resident in the UK for the purposes of assessing their income from salaried or non-salaried employment. They will not be treated as an overseas sponsor returning to the UK.

Where the applicant is in the UK with permission to work and they are combining their employment income with their partner’s employment income to meet the financial requirement, both employment incomes must be calculated under either Category A or Category B. The couple cannot use a combination of Category A and Category B to meet the financial requirement.

Where average is referred to in calculations of non-salaried employment this refers to the mean average. The calculation method for non-salaried employment will produce a mean average. You do not need to do anything additional to calculate this.

Overtime, payments to cover travel time (for example, for a care worker travelling between appointments), commission-based pay and bonuses (which can include tips and gratuities paid via a tronc scheme registered with HMRC) will be counted as income from employment where they have been received in the relevant period or periods prior to the date of application. Sometimes the person will receive the same amount of income from overtime each month; sometimes overtime payments will vary, with different amounts (if any) each month. All overtime in salaried employment will be calculated based on the approach to income from non-salaried employment. This will be an annualised 6-month average for the overtime which will be added to the level of the gross annual salary.

However, any future earnings that a person may earn by way of overtime, payments to cover travel time, commission-based pay or bonuses will not count as income towards the financial requirement. This exclusion also applies where an applicant’s partner seeks to rely on a job offer in the UK that will start within 3 months of their return. There is one exception to this: in respect of such a job offer in the UK, gross “on-target” earnings which may be expected from satisfactory performance in the standard or core hours of work can be included. This must be evidenced in the letter from the employer or signed contract of employment which must be submitted.

The case studies set out below are based on the £18,600 threshold. The principle of these examples also applies to £29,000 threshold.

Case study – Calculation of commission-based pay

Example (a)

The applicant must meet the £18,600 threshold. Their partner currently lives in Thailand and is returning to the UK with the applicant.

The applicant’s partner is employed at the date of application and is relying on Category A. He works as a car salesman in Thailand in salaried employment. In the 6 months prior to the date of application his gross annual salary was £15,000. He also received commission-based pay for each of the 6 months prior to the date of application which varied as follows: £500, £1000, £400, £200, £200, and £800.

The income from commission-based pay that can be added to the salaried employment

= (total commission earned over the last 6 months, divided by 6) multiplied by 12 = ((500+1000+400+200+250+800) ÷ 6) x 12

= (3150÷ 6) x 12

= £6,300

This annualised income from commission-based pay can then be added to the salaried income of £15,000 to provide a gross annual salary at the date of application of £21,300.

In addition, the applicant’s partner has a confirmed job offer with a car dealership in the UK to start within 8 weeks of his return to the UK. The annual starting salary for this job is £18,000. His signed contract of employment sets out that gross “on-target” earnings of £2,000 may be expected from satisfactory performance in the standard hours of work.

The addition of the on-target earnings means that the applicant’s partner meets the financial requirement using Category A as the income from this job offer that counts under the Immigration Rules will be £20,000.

The contract also indicated that the applicant’s partner would earn future commission of 10% on all sales. However, this future commission cannot be included towards the financial requirement.

The gross amount of any cash income may be counted towards the financial requirement, where the correct tax has been paid on that income and where all the relevant evidential requirements in Appendix FM-SE are met. Where a person’s payslips show their gross cash income and the tax paid, and their specified bank statements show all of that post-tax income, they can count the gross amount of the cash income shown on the payslips towards the financial requirement. But, where that person’s specified bank statements only show a proportion of that post-tax income, only the amount shown on the bank statements can be counted towards the financial requirement.

Where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in salaried or non-salaried employment, this may include work undertaken overseas, subject to the couple meeting the requirement in paragraph E- LTRP.1.10 of Appendix FM that they intend to live together permanently in the UK and subject to the other requirements of Appendix FM-SE being met.

Where the applicant’s partner is working overseas and transfers with the same employer to a job in the UK, that employment may be used to meet both the overseas employment income and the confirmed job offer in the UK required under Category A or Category B.

Where a person is either a director or employee of a limited company in the UK, or both and receives a salary from that company, that salaried income can be counted under Category A or Category B, provided that the limited company is not of a type specified in paragraph 9(a) of Appendix FM-SE (in that it is not in sole or limited family ownership). Evidence of the type of company must be provided, which can include the latest Annual Return filed at Companies House. A fee paid to a person appointed as a non-executive director of a company (and this is not a limited company in the UK of the type specified in paragraph 9(a) of Appendix FM-SE) instead of a salary may be treated and evidenced as though it were a salary paid for employment in that capacity.

Paragraph 9(a) of Appendix FM-SE states that the specified type of limited company is one in which:

the person is either a director or employee of the company, or both, or of another company within the same group
the shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin
any remaining shares are held (directly or indirectly) by fewer than 5 other persons

Where a person receives a salary from employment as a director or employee (or both) of a limited company in the UK of the type specified in paragraph 9(a), that salaried income can only be counted under Category F or Category G, as appropriate. See Self-employment or Director or employee of a specified limited company in the UK section of this guidance.

In respect of an equity partner, for example, in a law firm, the income they draw from the partnership (including where this is in the form of a profit share) will be treated as income from salaried employment and they must provide evidence of the employment and their income from it accordingly. If the payslips and employer’s letter required under paragraph 2 of Appendix FM-SE cannot be provided, they can be replaced by alternative evidence. This may include, but is not confined to, a letter (on official stationery) from an accountant, solicitor or business manager acting for the partnership (who is not the applicant or their partner) which provides the relevant information in paragraph 2 of Appendix FM-SE.

A person working as a subcontractor under the Construction Industry Scheme (CIS), administered by HMRC (and under which the contractor deducts tax and National Insurance contributions from the payments made to the subcontractor), can, as an alternative to meeting the requirements of Appendix FM-SE in respect of self- employment, choose instead to count their CIS income as income from salaried employment. If they do, they must meet the requirements of paragraph 2 of Appendix FM-SE for specified evidence for salaried employment, subject to reflecting their status as a CIS contractor rather than an employed person. They must provide CIS payment slips in place of payslips, a letter from the CIS contractor in place of an employer’s letter and the required personal bank statements. If a person cannot provide this evidence, or it is not clear that they are covered by the CIS scheme, their income should be treated as income from self-employment and the relevant self-employment evidence must be provided. See Self-employment or Director or employee of a specified limited company in the UK section of this guidance.

Those working in the UK and employed by a non-resident employer company will have a HMRC employee payroll scheme. The employee is not being paid gross, even though they may often receive the gross funds and then pay over the income tax and employee National Insurance contributions themselves.

Where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in receipt of maternity, paternity, adoption or sick pay, or has been so in the 6 months prior to the date of application, the relevant date for considering the length of employment and the income from the employment can be either:

the date of application
the date of commencement of the maternity, paternity, adoption or sick leave

But the specified time periods for any other sources of income that are being combined with the employment income will remain as otherwise set out in Appendix FM-SE and this guidance.

This means that where the application also relies on self-employment income, the relevant date above must fall within the last full financial year or years on which the self-employment income is based.

Any period of unpaid maternity, paternity, adoption, parental or sick leave in the 12 months prior to the date of application will not be counted towards any period relating to employment, or any period relating to income from employment, for which Appendix FM-SE provides. For example, if a person takes 2 weeks’ unpaid parental leave, this period will be discounted and will not be considered to have broken any continuous period relating to their employment or to their income from employment, and the person can show that they meet the annualised average income required over a period of 6 months and 2 weeks prior to the date of application.

Maternity pay, paternity pay and adoption pay which is paid overseas to a sponsor returning to the UK with the applicant to work can be counted towards the financial requirement.

The case studies set out below are based on the £18,600 threshold. The principle of these examples also applies to £29,000 threshold.

Case studies – Maternity, paternity, adoption, parental and sick leave

Example (a)

The applicant must meet the £18,600 threshold. Their partner is in the UK, has recently had a baby and returned to work from maternity leave 2 months prior to the date of application. Her contracted salary is £19,400 a year. She has been with her current employer for 2 years but, as she has not been earning the required level of income for all of the last 6 months because of her maternity leave, the period to be assessed can be the 6 months before she began her maternity leave.

Example (b)

The applicant must meet the £18,600 threshold. Their partner is relying on Category A non-salaried employment but had 2 weeks’ unpaid sick leave 2 months prior to the date of application. This 2 week period will be discounted for the purposes of the application and it will not break the 6 month period of continuous employment required. The applicant’s partner can show that they meet the annualised average income required over a period of 6 months and 2 weeks prior to the date of application.

Appendix FM-SE specifies further details in relation to paid employment:

When calculating income from salaried employment under paragraphs 12A and 13 to 16, this paragraph applies:

basic pay, skills-based allowances, and UK location-based allowances will be counted as income provided that:
- they are contractual and where these allowances make up more than 30% of the total salary, only the amount up to 30% is counted
- overtime, payments to cover travel time, commission-based pay and bonuses (which can include tips and gratuities paid via a tronc scheme registered with HMRC) will be counted as income, where they have been received in the relevant period or periods of employment or self-employment relied upon in the application
- in respect of a person in salaried employment at the date of application, the amount of income in sub-paragraph (b) which may be added to their gross annual salary, and counted as part of that figure for the purposes of paragraph 13(a)(i) or 13(b)(i), is the annual equivalent of the person’s average gross monthly income from that income in their current employment in the 6 months prior to the date of application
- payments relating to the costs of UK or overseas travel, including (for example) travelling or relocation expenses and subsistence or accommodation allowances, and payments made towards the costs of living overseas, will not be counted as income
- gross income from non-salaried employment will be counted on the same basis as income from salaried employment, except as provided in paragraph 18(e) and 18(f), and the requirements of this appendix for specified evidence relating to salaried employment shall apply as if references to salary were references to income from non-salaried employment

Non-salaried employment includes that paid at an hourly or other rate (and the number and/or pattern of hours required to be worked may vary) or paid an amount which varies according to the work undertaken.

Whereas salaried employment includes that paid at a minimum fixed rate (usually annual) and subject usually to a contractual minimum number of hours to be worked.

For the purpose of paragraph 13(a)(i), in respect of a person in non-salaried employment at the date of application ‘the level of gross annual salary relied upon in the application’ shall be no greater than the annual equivalent of the person’s average gross monthly income from non-salaried employment in the 6 months prior to the date of application, where that employment was held throughout that period. For the purpose of paragraph 13(b)(i), ‘the gross annual salary from employment as it was at the date of application’ of a person in non-salaried employment at the date of application shall be considered to be the annual equivalent of:

the person’s gross income from non-salaried employment in the period immediately prior to the date of application, where the employment has been held for a period of no more than one month at the date of application
the person’s average gross monthly income from non-salaried employment, where the employment has been held for a period of more than one month at the date of application

For the purpose of paragraphs 13(c)(ii) and 13(d)(i), ‘the gross annual salary in the salaried employment in the UK to which they are returning’ of a person who is returning to the UK to take up non-salaried employment in the UK starting within 3 months of their return is the gross annual income from that employment, based on the rate or amount of pay, and the standard or core hours of work, set out in the document or documents from the employer provided under paragraph 4.

Notwithstanding paragraph 18(b), this may include the gross ‘on-target’ earnings which may be expected from satisfactory performance in the standard or core hours of work.

Salaried and non-salaried employment: specified evidence

The evidence required to demonstrate income from salaried employment (and, by virtue of paragraph 18(d), non-salaried employment) is specified in Appendix F M -S E.

In respect of salaried employment in the UK (except where paragraph 9 applies) all of the following evidence must be provided:

Payslips covering either:

a period of 6 months prior to the date of application if the person has been employed by their current employer for at least 6 months (and where paragraph 13(b) of this appendix does not apply)
any period of salaried employment in the period of 12 months prior to the date of application if the person has been employed by their current employer for less than 6 months (or at least 6 months but the person does not rely on paragraph 13(a) of this appendix), or in the financial year or years relied upon by a self-employed person

A letter from the employer or employers who issued the payslips at paragraph 2(a) confirming:

the person’s employment and gross annual salary
the length of their employment
the period over which they have been or were paid the level of salary relied upon in the application
the type of employment (permanent, fixed-term contract or agency)
personal bank statements corresponding to the same period or periods as the payslips at paragraph 2(a), showing that the salary has been paid into an account in the name of the person or in the name of the person and their partner jointly
where the person is either a director or employee (or both) of a limited company based in the UK, evidence that the company is not a type specified in paragraph 9(a) - this can include the latest Annual Return filed at Companies House

In addition to the evidence listed above, paragraph 2A of Appendix FM-SE specifies that P60(s) for the relevant period(s) of employment (if issued) and a signed contract(s) of employment may also be submitted in respect of paid employment in the UK. If they are not submitted, the decision-maker may grant the application if otherwise satisfied that the requirements of Appendix FM-SE relating to that employment are met, or they may ask for the documents to be submitted in accordance with paragraph D of the Appendix.

In respect of salaried employment outside of the UK, evidence should be a reasonable equivalent to that set out in paragraph 2 and (where relevant) paragraph 2A.

In respect of a job offer in the UK (for an applicant’s partner or parent’s partner returning to salaried employment in the UK at paragraphs E-ECP.3.2.(a) and EECC.2.2.(a) of Appendix FM) a letter from the employer must be provided:

confirming the job offer, the gross annual salary and the starting date of the employment which must be within 3 months of the applicant’s partner’s return to the UK
enclosing a signed contract of employment, which must have a starting date within 3 months of the applicant’s partner’s return to the UK

In respect of statutory or contractual maternity, paternity or adoption pay all of the following, and in the respect of parental leave in the UK only the evidence at paragraph 5(c), must be provided:

personal bank statements corresponding to the same period or periods as the payslips at paragraph 5(b), showing that the salary has been paid into an account in the name of the person or in the name of the person and their partner jointly

Payslips covering:

a period of 6 months prior to the date of application or to the commencement of the maternity, paternity or adoption leave
a period showing the applicant has been employed by their current employer for at least 6 months (and where paragraph 13(b) does not apply)
or (ii) any period of salaried employment in the period of 12 months prior to the date of application or to the commencement of the maternity, paternity or adoption leave, if the applicant has been employed by their current employer for less than 6 months (or at least 6 months but the person does not rely on paragraph 13(a))

A letter from the employer confirming:

the length of the person’s employment
the gross annual salary and the period over which it has been paid at this level
the entitlement to maternity, paternity, parental or adoption leave
the date of commencement and the end-date of the maternity, paternity, parental or adoption leave

In addition to the evidence listed above, P60 or P60s for the relevant period or periods of employment (if issued) and a signed contract or contracts of employment may also be submitted in respect of paid employment in the UK. If they are not submitted, the decision-maker may grant the application if otherwise satisfied that the requirements of Appendix FM-SE relating to that employment are met, or they may ask for the documents to be submitted in accordance with paragraph D of the Appendix.

In respect of statutory or contractual sick pay in the UK all of the following must be provided:

personal bank statements corresponding to the same period or periods as the payslips at paragraph 6(b), showing that the salary has been paid into an account in the name of the person or in the name of the person and their partner jointly

Payslips covering:

a period of 6 months prior to the date of application or to the commencement of the sick leave, if the applicant has been employed by their current employer for at least 6 months (and where paragraph 13(b) does not apply)
any period of salaried employment in the period of 12 months prior to the date of application or to the commencement of the sick leave, if the applicant has been employed by their current employer for less than 6 months (or at least 6 months but the person does not rely on paragraph 13(a)

A letter from employer confirming:

the length of the person’s employment
the gross annual salary and the period over which it has been paid at this level; that the person is in receipt of statutory or contractual sick pay; and the date of commencement of the sick leave

In addition to the evidence listed above, P60 or P60s for the relevant period or periods of employment (if issued) and a signed contract or contracts of employment may also be submitted in respect of paid employment in the UK. If they are not submitted, the decision-maker may grant the application if otherwise satisfied that the requirements of Appendix FM-SE relating to that employment are met, or they may ask for the documents to be submitted in accordance with paragraph D of the appendix.

Question 7

Non-employment income

Accepted Answer

Category C: Non-employment income – requirements

The following are sources of non-employment income which can be counted towards the financial requirement under Category C:

property rental
dividends or other income from investments, stocks and shares, bonds or trust funds
interest from savings
maintenance payments from a former partner of the applicant in relation to the applicant or any children of the applicant and their former partner (any documents issued by the family court must have permission to be disclosed) - also, maintenance payments from a former partner of the applicant’s partner in relation to that partner
UK Maternity Allowance, Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance
payments under the War Pensions Scheme, the Armed Forces Compensation Scheme and the Armed Forces Attributable Benefits Scheme
a maintenance grant or stipend (not a loan) associated with undergraduate study or postgraduate study or research
ongoing insurance payments
ongoing payments from a structured legal settlement
ongoing royalty payments

Unless otherwise specified, the specified non-employment income which the applicant’s partner and/or the applicant have received in the 12 months prior to the date of application can be counted towards the financial requirement.

The relevant asset on which any income is based must be in the name of the applicant, their partner or both jointly and held or owned at the date of application.

The asset owned at the date of application does not need to have been owned for 12 months prior to the date of application, but it must have been a source of income for at least part of that 12-month period. For example, the asset is owned at the date of application, has been owned for the last 3 months and has been a source of income during that period of 3 months: that income can be counted towards the financial requirement.

The gross amount of any cash income may be counted towards the financial requirement, where the correct tax has been paid on that income and where all the relevant evidential requirements in Appendix FM-SE are met. Where a person’s relevant specified evidence relating to permitted sources of non-employment income shows their gross cash income and the tax paid, and their specified bank statements in relation to the permitted non-employment income shows all of that post-tax income, they can count the gross amount of the cash income shown on the specified documentation towards the financial requirement (or the net income in relation to dividends). But, where that person’s specified bank statements relating to permitted non-employment income only show a proportion of that post-tax income, only the amount shown on the bank statements can be counted towards the financial requirement.

A director or employee of a limited company in the UK who receives dividend income from the company can count this income as non-employment income under Category C, unless the company is of a type specified in paragraph 9(a) of Appendix FM-SE (in that it is in sole or limited family ownership). If it is, this non-employment income will be considered under Category F or Category G as appropriate.

Payments under the War Pensions Scheme, the Armed Forces Compensation Scheme and the Armed Forces Attributable Benefits Scheme can be included as nonemployment income, provided that (a) they are not considered as pension income.

Income from a maintenance grant or stipend (not a loan) associated with undergraduate study or postgraduate study or research received by the applicant’s partner or the applicant can be counted towards the financial requirement. The person must be currently in receipt of the grant or stipend or will be within 3 months of the date of application, and the grant or stipend must be payable for a period of at least 12 months, or for at least one full academic year, from the date of application or from the date on which payment of the grant or stipend will commence. Where the grant or stipend is paid on a tax-free basis, see this Maintenance grant or stipend - further guidance section of this guidance for further information.

Income from royalties received by the applicant or their partner can be included as nonemployment income, provided that the application is accompanied by a letter (on official stationery) from a solicitor, accountant or business manager. The letter must set out the contractual or other basis of the royalty income by confirming the amount and frequency of the royalty payments in the 12 months prior to the date of application. This should also confirm that the royalty payments will continue for at least the 12 months following the date of application along with personal bank statements for any part of the 12-month period prior to the date of application, showing the royalty payments were paid into the person’s account.

Income from Category C can be combined with income from Category A and Category B: salaried and non-salaried employment, Category D: cash savings and Category E: pension in order to meet the financial requirement.

Property rental: further guidance

Appendix FM-SE specifies further requirements for property rental income:

Any rental income from property, in the UK or overseas, must be from a property that is:

The amount of rental income from property received before any management fee was deducted may be counted.

Equity in a property cannot be used to meet the financial requirement.

Where the applicant and their partner are resident outside the UK at the date of application, rental income from a property in the UK that will become their main residence if the application is granted may only be counted under paragraph 13(c)(i) and paragraph 13(d)(ii).

Therefore, income from a room in the main residence rented to a lodger cannot be counted. Income from a property that is rented out for all or part of the year (for example, a holiday let) can be counted.

Where the applicant and their partner are resident in the UK at the date of application, rental income from a property in the UK cannot be counted as income if that property will become the couple’s main residence if the application is granted.

Where the couple are returning to the UK from overseas, rental income from a property in the UK that will become the couple’s main residence if the application is granted can be combined with the applicant’s partner’s overseas employment income to meet that part of the financial requirement. However, it cannot be combined with the income from the applicant’s partner’s job offer in the UK as the couple’s home in the UK will no longer be a source of income once the couple have returned here.

Dividends and other investment income: further guidance

If income has been earned from investments, shares and/or stocks in the 12 months prior to the date of application and the relevant asset was then sold, we will consider it to be held at the date of application and that income may be counted towards the financial requirement, provided that investments, shares and/or stocks of an equivalent volume have since been purchased in the same company and are held at the date of application.

Where a person is relying on dividends from a UK limited company and they are also a director or employee of that company, to count this dividend income under Category C evidence must be provided to show that the company is not of a type specified in paragraph 9(a) of Appendix F M -S E, which is one in which:

the person is either a director or employee of the company, or both, or of another company within the same group
shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first

cousin; and any remaining shares are held (directly or indirectly) by fewer than 5 other persons

Where the company is of this type, income from dividends will be considered under Category F or Category G as appropriate. See: Self-employment or Director or employee of a specified limited company in the UK.

Maintenance grant or stipend: further guidance

Where an academic maintenance grant or stipend is, or will be, paid on a tax-free basis, the amount of the gross equivalent can be counted towards the financial requirement. The person must be currently in receipt of the grant or stipend or will be within 3 months of the date of application, and the grant or stipend must be payable for a period of at least 12 months, for at least one full academic year, from the date of application or from the date on which payment of the grant or stipend will commence.

A tax-free grant or stipend can be combined with income on which tax has been paid and with current cash savings. The decision-maker should add together:

the annual tax-free amount of the grant or stipend
the annual post-tax (net) amount of any employment or other income (if the requirements of Appendix FM-SE in respect of that income are met); and
the relevant amount of current cash savings (if the requirements of Appendix FM- SE in respect of those cash savings are met)

To see if the total meets the amount required in the third column of the table in section above.

Non-employment income: specified evidence

The evidence required to demonstrate non-employment income is specified in Append ix F M -S E.

In respect of non-employment income all the following evidence, in relation to the form of income relied upon, must be provided:

To evidence property rental income:

confirmation that the person or the person and their partner jointly own the property for which the rental income is received, through:
- a copy of the title deeds of the property or of the title register from the Land Registry (or overseas equivalent); or a mortgage statement
- personal bank statements for or from the 12-month period prior to the date of application showing the rental income relied upon was paid into an account in the name of the person or of the person and their partner jointly - the bank statements should cover the period for which the income is relied upon
- a rental agreement or contract

To evidence dividends (except where paragraph 9 applies) or other income from investments, stocks, shares, bonds or trust funds:

a certificate showing proof of ownership and the amount or amounts of any investment or investments
a portfolio report (for a financial institution regulated by the Financial Conduct Authority (and Prudential Regulation Authority where applicable) in the UK) or a dividend voucher showing the company and person’s details with the person’s net dividend amount and tax credit
personal bank statements for or from the 12-month period prior to the date of application showing that the income relied upon was paid into an account in the name of the person or of the person and their partner jointly - the bank statements should cover the period for which the income is relied upon
where the person is either a director or employee (or both) of a limited company based in the UK, evidence that the company is not of a type specified in paragraph 9(a) - this can include the latest Annual Return filed at Companies House

To evidence interest from savings:

personal bank statements for or from the 12-month period prior to the date of application showing the amount of the savings held and that the interest was paid into an account in the name of the person or of the person and their partner jointly - the bank statements should cover the period for which the income is relied upon

To evidence maintenance payments (from a former partner of the applicant to maintain their and the applicant’s child or children or the applicant, or from a former partner of the applicant’s partner to maintain the applicant’s partner):

evidence of a maintenance agreement through any of the following:
- a court order
- written voluntary agreement
- Child Support Agency documentation

Personal bank statements for or from the 12-month period prior to the date of application showing the income relied upon was paid into an account in the name of the person or of the person and their partner jointly. The bank statements should cover the period for which the income is relied upon.

Pension income – see Category E.

To evidence UK Maternity Allowance, Bereavement Allowance, Bereavement Payment and Widowed Parent’s Allowance:

Department for Work and Pensions documentation confirming the person or their partner is or was in receipt of the benefit in the 12-month period prior to the date of application
personal bank statements for or from the 12-month period prior to the date of application showing the income was paid into the person’s account - the bank statements should cover the period for which the income is relied upon

Subject to paragraph 12, to evidence payments under the War Pensions Scheme, the Armed Forces Compensation Scheme or the Armed Forces Attributable Benefits Scheme which are not treated as a pension for the purpose of paragraph 10(e)(i):

Veterans Agency or Department for Work and Pensions documentation in the form of an award notification letter confirming the person or their partner is or was in receipt of the payment at the date of application
personal bank statements for or from the 12-month period prior to the date of application showing the income was paid into the person’s account - the bank statements should cover the period for which the income is relied upon

Maintenance grant or stipend income (not a loan) associated with undergraduate study or postgraduate study or research:

documentation from the body or company awarding the grant or stipend confirming:
- that the person is currently in receipt of the grant or stipend or will be within 3 months of the date of application, confirming that the grant or stipend will be paid for a period of at least 12 months or at least one full academic year, from the date of application or from the date on which payment of the grant or stipend will commence, and confirming the annual amount of the grant or stipend - where the grant or stipend is or will be paid on a tax-free basis, the gross equivalent amount may be counted as income
personal bank statements for any part of the 12-month period prior to the date of the application during which the person has been in receipt of the grant or stipend showing the income was paid into the person’s account

To evidence ongoing insurance payments (such as, but not exclusively, payments received under an income protection policy):

documentation from the insurance company confirming:
- that in the 12 months prior to the date of application the person has been in receipt of insurance payments and the amount and frequency of the payments
- the reason for the payments and their expected duration
- that, provided any relevant terms and conditions continue to be met, the payment or payments will continue for at least the 12 months following the date of application
- personal bank statements for any part of the 12-month period prior to the date of application showing the insurance payments were paid into the person’s account

(To evidence ongoing payments (other than maintenance payments under paragraph 10(d)) arising from a structured legal settlement (such as, but not exclusively, one arising from settlement of a personal injury claim):

documentation from a court or the person’s legal representative confirming:
- that in the 12 months prior to the date of application the person has been in receipt of structured legal settlement payments and the amount and frequency of those payments
- the reason for the payments and their expected duration
- that the payment or payment(s) will continue for at least the 12 months following the date of application
- personal bank statements for any part of the 12-month period prior to the date of application showing the payments were paid into the person’s account, either directly or via the person’s legal representative

Question 8

Cash savings

Accepted Answer

Category D: cash savings – requirements

An amount based on the cash savings above £16,000 held by the applicant, their partner, or both jointly or a child dependant relative who is over 18 for at least the 6 months prior to the date of application and under their control can count towards the financial requirement under Category D. (£16,000 is the level of savings at which a person generally ceases to be eligible for income-related benefits).

Category D: Cash savings can be combined with income from Category A: salaried and non-salaried employment, part (1) of Category B: salaried and non-salaried employment, Category C: non-employment income and Category E: pension in order to meet the financial requirement.

Category D: Cash savings cannot be combined with self-employment income, or with income from employment as a director or employee of a specified limited company in the UK, under either Category F or Category G: see Category F: last full financial year section of this guidance. Category D: Cash savings also cannot be combined with part (2) of Category B: salaried and non-salaried employment: see Category B: less than 6 months with current employer or variable income - person residing in the UK section of this guidance.

For those in paid employment at the date of application, current cash savings may be used to make up any deficit in the current gross annual income of that employment (and/or in the confirmed employment in the UK to which they are returning, in the case of overseas sponsors), in order to meet the financial requirement.

However, those who have held that employment at the level of income relied upon for less than 6 months at the date of application have in addition to show that they meet the financial requirement over the 12 months prior to the date of application. In doing so, they cannot combine their current cash savings with their past earnings over that earlier period, because this would not be an accurate indicator of the real level of financial resources available to the couple. It could also lead to the same money being counted twice, once as earnings and later as savings. A similar approach is taken towards those in self-employment, or in employment as a director or other employee of a specified limited company, who have to show their past earnings over the previous financial year or years.

Calculating cash savings: Appendix FM

The following calculations are to be used for those applying as a Partner or Child under Appendix FM to the Immigration Rules.

At the entry clearance/initial permission to stay stage and the further permission to stay stage, the amount of cash savings above £16,000 must be divided by 2.5 (to reflect the 2.5 year or 30month period before the applicant will have to make a further application) to give the amount which can be used in meeting the financial requirement. The following equation is to be used:

(x minus 16,000) divided by 2.5 = y

Where x is the total amount of cash savings held by the applicant, their partner, or both jointly for at least the 6 months prior to the date of application and under their control.

And y is the amount which can be used towards the financial requirement.

At the indefinite leave to remain stage, the whole of the amount above £16,000 can be used. And the following equation is to be used:

(x minus 16,000) = y

Table 4: Examples where cash savings are being used to meet the £18,600 threshold

Total savings held	Entry clearance/ permission to stay	Entry clearance / permission to stay	Indefinite leave to remain	Indefinite leave to remain
-	Amount which can be used	Income needed form other sources (that can be combined with cash savings)	Amount which can be used	Income needed from other sources (that can be combined with cash savings)
£62,500	(62500 – 16000) ÷ 2.5 = £18,600	None	(62500– 16000) = £46,500	None
£40,500	(40500 – 16000) ÷ by 2.5 = £9,800	£8,800	(40500 – 16000) = £24,500	None
£33,000	(33000 – 16000) ÷ 2.5 = £6,800	£11,800	(33000 – 16000) = £17,000	£1,600
£25,000	(25000 – 16000) ÷ 2.5 = £3,600	£15,000	(25000 – 16000) = £9,000	£9,600
£17,500	(17500 – 16000) ÷ 2.5 = £600	£18,000	(17500 – 16000) = £1,500	£17,100
£16,500	(16500 – 16000) ÷ 2.5 = £200	£18,400	(16500 – 16000) = £500	£18,100

Table 5: Examples where cash savings are being used to meet the £29,000 threshold

Total savings held	Entry clearance / permission to stay	Entry clearance / permission to stay	Indefinite leave to remain	Indefinite leave to remain
-	Amount which can be used	Income needed form other sources (that can be combined with cash savings)	Amount which can be used	Income needed from other sources (that can be combined with cash savings)
£88,500	(88500 – 16000) ÷ 2.5 = £29,000	None	(88,500– 16000) = £72,500	None
£60,000	(60,000 – 16000) ÷ by 2.5 = £17,600	£11,400	(60000 – 16000) = £44,000	None
£33,000	(33000 – 16000) ÷ 2.5 = £6,800	£22,200	(33000 – 16000) = £17,000	£12,000
£25,000	(25000 – 16000) ÷ 2.5 = £3,600	£25,400	(25000 – 16000) = £9,000	£20,000
£17,500	(17500 – 16000) ÷ 2.5 = £600	£28,400	(17500 – 16000) = £1,500	£27,500
£16,500	(16500 – 16000) ÷ 2.5 = £200	£28,800	(16500 – 16000) = £500	£28,500

Calculating cash savings: Appendix Armed Forces

The following calculations are to be used for those applying as a Partner or Child under Appendix HM Armed Forces to the Immigration Rules.

At the entry clearance/initial permission to stay stage and the further permission to stay stage, the amount of cash savings above £16,000 must be divided by the length of permission being granted (in years or as part of a year) to give the amount which can be used in meeting the financial requirement. This approach reflects the fact that partners and children granted permission under Appendix HM Armed Forces are granted different periods of permission to applicants under Appendix FM. Some applicants under Appendix HM Armed Forces will receive 5 years’ permission but some will get a shorter period, for example, in line with the remaining duration of their partner or parent’s enlistment.

The following equation is to be used:

(x minus 16,000) divided by z = y

Where x is the total amount of cash savings held by the applicant, their partner, or both jointly for at least the 6 months prior to the date of application and under their control.

y is the amount which can be used towards the financial requirement.

And z is the length of permission being granted in years or as part of a year. To convert the number of months being granted to a yearly figure for use in this calculation, the following equation is to be used:

(Number of months permission being granted, to the nearest whole month) divided by 12 = length of permission being granted in years, to the nearest 2 decimal places.

The following tables set out some examples where £25,000 in cash savings is held and where the level of financial requirement at the entry clearance/permission to stay stage is either £18,600 or £23,496. The length of permission being granted in these examples varies from 15 to 60 months.

Table 6: Examples of Armed Forces cash savings calculations when the £18,600 threshold applies.

Length of permission being granted, to the nearest whole month	Length of permission in years, to 2 decimal places (using a minimum 12 months)	Amount of savings which can be used	Income needed from other sources such as employment income of the HM Forces sponsor
15 months	15 ÷ 12 = 1.25	(25000 – 16000) ÷ 1.25 = £7,200	£11,400
20 months	20 ÷ 12 = 1.67	(25000 – 16000) ÷ 1.67 = £5,389.22	£13,210.78
25 months	25 ÷ 12 = 2.08	(25000 – 16000) ÷ 2.08 = £4,326.92	£14,273.08
30 months	30 ÷ 12 = 2.50	(25000 – 16000) ÷ 2.50 = £3,600	£15,000
35 months	35 ÷ 12 = 2.92	(25000 – 16000) ÷ 2.92 = £3,082.19	£15,517.81
40 months	40 ÷ 12 = 3.33	(25000 – 16000) ÷ 3.33 = £2,702.70	£15,897.30
45 months	45 ÷ 12 = 3.75	(25000 – 16000) ÷ 3.75 = £2,400	£16,200
50 months	50 ÷ 12 = 4.17	(25000 – 16000) ÷ 4.17 = £2,158.27	£16,441.73
55 months	55 ÷ 12 = 4.58	(25000 – 16000) ÷ 4.55 = £1,965.07	£16,634.93
60 months	60 ÷ 12 = 5.00	(25000 – 16000) ÷ 5.00 = £1,800	£15,000

Table 7: Examples of Armed Forces cash savings calculations when the £23,496 threshold applies.

Length of permission being granted, to the nearest whole month	Length of permission in years, to 2 decimal places (using a minimum 12 months)	Amount of savings which can be used	Income needed from other sources such as employment income of the HM Forces sponsor
15 months	15 ÷ 12 = 1.25	(25000 – 16000) ÷ 1.25 = £7,200	£16,296
20 months	20 ÷ 12 = 1.67	(25000 – 16000) ÷ 1.67 = £5,389.22	£18,106.78
25 months	25 ÷ 12 = 2.08	(25000 – 16000) ÷ 2.08 = £4,326.92	£19,169.08
30 months	30 ÷ 12 = 2.50	(25000 – 16000) ÷ 2.50 = £3,600	£19,896
35 months	35 ÷ 12 = 2.92	(25000 – 16000) ÷ 2.92 = £3,082.19	£20,413.81
40 months	40 ÷ 12 = 3.33	(25000 – 16000) ÷ 3.33 = £2,702.70	£20,793.30
45 months	45 ÷ 12 = 3.75	(25000 – 16000) ÷ 3.75 = £2,400	£21,096
50 months	50 ÷ 12 = 4.17	(25000 – 16000) ÷ 4.17 = £2,158.27	£21,337.73
55 months	55 ÷ 12 = 4.58	(25000 – 16000) ÷ 4.55 = £1,965.07	£21,530.93
60 months	60 ÷ 12 = 5.00	(25000 – 16000) ÷ 5.00 = £1,800	£21,696

Cash savings: further guidance

Savings must be held in cash in a personal bank/savings account in the name of the applicant, their partner or the couple jointly. The savings can be from any legal source, including a gift from a family member or other third party, provided the source of the cash savings is declared. The applicant and/or their partner must confirm that the money, which cannot be borrowed, is under their control and evidence that it has been held in their bank account for at least the 6 months prior to the date of application.

The bank/savings account can be a current, deposit or investment account, provided by a financial institution regulated by the appropriate regulatory body for the country in which that institution is operating. Current and deposit accounts are usually easily identifiable. An investment account must also meet all of the other cash savings requirements to be considered as a bank/savings account for the purposes of the cash savings rules at paragraphs 11 and 11A(a).

These are the requirements that must be met:

the bank/savings account is a current, deposit or investment account
the account is held is a financial institution regulated by the appropriate regulatory body for the country in which that institution is operating
regular bank statements are provided
the statements cover the necessary time period required in the Immigration Rules
the savings are held in cash (or their cash value is clear)
the savings can be immediately withdrawn (with or without penalty)
the funds are under the control of the person and/or their partner for the necessary time period required in the Immigration Rules
the source of the funds is legal
the source of the funds has been declared

For example, in the UK a ‘stocks and shares’ Individual Savings Account (ISA) does meet the definition of a savings account and the funds can be considered as cash savings if all the requirements above are met. Likewise, a pension savings account from which savings can be immediately withdrawn.

Funds that are held in an account at the date of application that do not meet all of the requirements listed in the above table cannot be considered as cash savings that meet the requirements of paragraphs 11 and 11A(a) in Appendix FM of the rules. An example of an account that generally does not meet all of these requirements is a brokerage account in which funds are used by stockbrokers to purchase shares for the account holder. It does not meet the criteria of being a bank/savings account.

See paragraph 7.4.9. in respect of funds held in an investment account which does not meet the requirements of paragraphs 11 and 11A(a). A betting account held with a bookmaker or gambling operator will also not meet the requirements of paragraphs 11 and 11A(a).

Income from shares, for example, dividends, can be counted as non-employment income (see: Dividends and other investment income – further guidance).

Alternatively, the investments such as those held in a brokerage account can be liquidated or transferred into cash savings prior to the application.

If a penalty would be deducted from the cash savings if they were to be withdrawn from the account without notice, the amount of the penalty should not be deducted from the level of savings held at date of application.

Under paragraph 11A(c) funds held as cash savings by the applicant, their partner or both jointly at the date of application can have been transferred from investments (including funds liquidated from a pension pot), stocks, shares, bonds or trust funds within the period of 6 months prior to the date of application, provided that:

the funds have been in the ownership and under the control of the applicant, their partner or both jointly for at least the period of 6 months prior to the date of application
the ownership of the funds in the form of investments, stocks, shares, bonds or trust funds; the cash value of the funds in that form at or before the beginning of the period of 6 months prior to the date of application; and the transfer of the funds into cash, are evidenced by a portfolio report or other relevant documentation from a financial institution regulated by the appropriate regulatory body for the country in which that institution is operating
the requirements of Appendix FM-SE in respect of the cash savings held at the date of application are met, except that the period of 6 months prior to the date of application in paragraph 11(a) will be reduced by the amount of that period in which the relevant funds were held in the form of investments, stocks, shares, bonds or trust funds
for the purposes of sub-paragraph 11A(c), ‘investments’ includes funds held in an investment account which does not meet the requirements of paragraphs 11 and 11A(a)

This means that, where the cash savings have previously been held as investments (including where they have been held in an investment account which does not meet the requirements of paragraphs 11 and 11A(a)), stocks, shares, bonds or trust funds that were owned by and under the control of the applicant, their partner or both jointly, this ownership period can be counted towards the 6 month period. Money held as cash savings at the date of application can have been liquidated or transferred by the same owner or owners from investments and may have been held as investments for the first part of the period of 6 months prior to the date of application and as cash savings for the rest of that 6 month period (see the table for a summary of the cash savings requirements). Evidence must be provided showing that:

the investments, stocks, shares, bonds or trust funds were in the ownership and under the control of the applicant, their partner or both jointly for that part of the 6-month period prior to the date of application before they were liquidated into cash savings
the value of the investments, stocks, shares, bonds or trust funds at or before the beginning of that 6-month period was at least equivalent to the amount of the cash savings relied upon in the application
the cash savings meet the requirements of Appendix FM-SE

If this evidence is not provided, the cash savings previously held as investments, stocks, shares, bonds or trust funds cannot be counted towards the financial requirement.

Funds held as cash savings by the applicant, their partner or both jointly at the date of application can be from the proceeds of the sale of property within the period of 6 months prior to the date of application, provided that:

the property was in the form of a dwelling, other building or land
the property (or relevant share of the property) was owned by the applicant, their partner or both jointly at the beginning of the 6-month period prior to the date of application
the funds deposited as cash savings are the net proceeds of the sale, once any mortgage or loan secured on the property (or relevant share of the property) has been repaid and once any taxes and professional fees associated with the sale have been paid
if the ownership of the property was shared with a third party, only the proceeds of the sale of the share of the property owned by the applicant, their partner or both jointly may be counted

This means that, where the cash savings held at the date of application are the proceeds of an applicable property sale; the period the property was owned in the 6 months prior to the date of application, before it was sold to produce cash savings, can be counted towards the 6-month period. Money held as cash savings at the date of application can have resulted from the sale of a property for the first part of the period of 6 months prior to the date of application and as cash savings for the rest of that 6-month period. If the decision-maker is satisfied that all the requirements have been met in addition to the requirements being met when the funds are held as cash savings (see the table for a summary of the cash savings requirements).

The rules do not specify what evidence must be submitted as individual circumstances and local property laws and taxes will vary. However, to assist applicants and decisionmakers, the rules give examples of some evidence we will take into account. But other evidence may be accepted if it indicates the requirements are met.

Examples of the evidence that can be provided include:

Land Registry information or documentation (or a copy of this) or its overseas equivalent
a letter from a solicitor (or other relevant professional if the sale takes place overseas) instructed in the sale of the property confirming the sale price and other relevant information
a letter from a lender (a bank or building society) on its headed stationery regarding the repayment of a mortgage or loan secured on the property
confirmation of payment of taxes or professional fees associated with the sale

In the UK property taxes are generally stamp duty, capital gains tax and inheritance tax but not all will apply to every property sale. In some cases, no property taxes may be due. Professional fees in the UK would generally be regarded as estate agent fees or equivalents and legal fees. Overseas, the type of taxes and professional fees due when a property is sold will vary.

If the documentation mentioned in the rules is provided, this does not necessarily mean that the requirement is met. The decision-maker must be satisfied that the documents provided, whether mentioned in the rules or not (for example, relating to ownership and net proceeds of sale), demonstrate that all the requirements are met. Additional information may be requested so that the decision-maker is satisfied that the rules are met. If the requisite evidence is not provided, the cash savings previously held as property cannot be counted towards the financial requirement.

The case studies set out below are based on the £18,600 threshold. The principle of these examples also applies to £29,000 threshold.

Case studies – Cash savings previously held as investments or property

Example (a)

The applicant must meet the £18,600 threshold. Their partner has an investment portfolio worth approximately £1m, although this value fluctuates. In order to meet the financial requirement, she liquidates part of her investment 2 months prior to the date of application and transfers £62,500 in cash to her personal savings account. She is able to provide a portfolio report showing that the value of the liquidated assets was at least £62,500 7 months prior to the date of application. The cash savings meet the requirements of Appendix FM-SE at the date of application and, by combining the period the money was held as investments with the period the money has been held as cash savings, the funds have been owned by the applicant’s partner and under their control for at least the 6 months prior to the date of application.

The financial requirement is met through Category D cash savings.

Example (b)

The applicant must meet the £18,600 threshold. The own 2 properties with their partner, one in the UK and one overseas. They have owned both properties which are residential homes for over 10 years. They sell the overseas property prior to returning to the UK. The property is sold 3 months prior to the date of application and the applicant has provided evidence showing that the net proceeds from the sale amount to £70,500 after payment of professional fees and taxes. The applicant has provided a solicitor’s letter confirming ownership and the sale of the property and a further letter from the solicitor showing the financial transactions and that all outstanding fees are paid. He has also provided a letter from the mortgage lender showing the original purchase price and outstanding mortgage at time of sale and that this has been paid, together with bank statements to show the transfer of the proceeds into the couple’s joint account. The cash savings now held at the date of application meet the requirements of Appendix FM-SE because taking account of the period they were held as property, the funds have been held by the applicant and under their control for at least the 6 months prior to the date of application. In addition, the specified evidence required for the period the money has been held as cash savings has been provided.

The financial requirement is met through Category D cash savings. Appendix F M -S E specifies further requirements for cash savings:

In respect of cash savings:

the savings may be held in any form of bank/savings account (whether a current, deposit or investment account, provided by a financial institution regulated by the appropriate regulatory body for the country in which that institution is operating), provided that the account allows the savings to be accessed immediately (with or without a penalty for withdrawing funds without notice - this can include savings held in a pension savings account which can be immediately withdrawn
paid out competition winnings or a legacy which has been paid can contribute to cash savings

Cash savings: specified evidence

The evidence required for cash savings is specified in Appendix FM-SE.

In respect of cash savings, the following must be provided:

personal bank statements showing that at least the level of cash savings relied upon in the application has been held in an account or accounts in the names of the person and their partner jointly throughout the period of 6 months prior to the date of application
a declaration by the account holder or holders of the source or sources of the cash savings

Question 9

Pension

Accepted Answer

Category E: Pension – requirements

The gross annual income from any State (UK Basic State Pension and Additional or Second State Pension, HM Forces Pension or foreign), occupational or private pension received by the applicant’s partner or the applicant can be counted towards the financial requirement under Category E.

The annual pension income may be counted where the pension has become a source of income at least 28 days prior to the application.

This source can be combined with income from Category A: salaried and non- salaried employment, part (1) of Category B: salaried and non-salaried employment, Category C: non-employment income and Category D: cash savings in order to meet the financial requirement.

The gross amount of any State (UK or foreign), occupational or private pension received by the applicant’s partner or the applicant in the 12 months prior to the date of application can be combined with part (2) of Category B: salaried and non-salaried employment.

Where an application relying on pension income also relies on cash savings liquidated from the pension pot on which this income is based, the specified evidence from the pension provider of the ongoing pension income will need to reflect the cash withdrawal from the pension pot.

Pension: Specified evidence

The evidence required to demonstrate Pension income is specified in Appendix FM- SE.

To evidence a pension, all the following evidence must be provided:

official documentation from:
- the Department for Work and Pensions (in respect of the Basic State Pension and the Additional or Second State Pension) or other government department or agency, including the Veterans Agency; an overseas pension authority; or a pension company, confirming pension entitlement and amount
- at least one personal bank statement in the 12-month period prior to the date of application showing payment of the pension into the person’s account
- for the purposes of sub-paragraph (i), War Disablement Pension, War Widow’s/Widower’s Pension and any other pension or equivalent payment for life made under the War Pensions Scheme, the Armed Forces Compensation Scheme or the Armed Forces Attributable Benefits Scheme may be treated as a pension, unless excluded under paragraph 21 of this appendix

Question 10

Self-employment or Director or employee of a specified limited company in the UK

Accepted Answer

Category F: Last full financial year

Where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in self-employment or is either the director or employee (or both) of a specified limited company in the UK, at the date of application, they can use income from the last full financial year to meet the financial requirement.

Category G: Average of last 2 full financial years

Where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in self-employment, or is the director or employee (or both) of a specified limited company in the UK, at the date of application, they can choose instead to rely on Category G. This allows them to use an average of the income received in the last 2 full financial years to meet the financial requirement.

A reference to the ‘average’ of the income received in the last 2 full financial years in Category G is a reference to the mean average.

Self-employment or Director or employee of a specified limited company in the UK: general requirements

For those self-employed as a sole trader, as a partner or in a franchise, the relevant financial year or years will be that covered by the self-assessment tax return and in the UK this runs from 6 April to 5 April the following year. Where the applicant is relying on their partner’s income from self-employment overseas, the relevant financial year or years will reflect the requirements of the taxation system of that country.

For those employed as a director or other employee (or both) of a specified limited company in the UK, the relevant financial year or years will be that covered by the Company Tax Return CT600 and corresponds to the 12-month accounting year of the company.

The evidence submitted must cover the relevant financial year or years most recently ended. A self-assessment tax return may include provisional figures, where the return explains why this is so and how the figures were arrived at, and in which case a covering letter explaining this and how any provisional figures tie in with other material submitted, for example, audited or unaudited accounts, may be helpful. This means that a sponsor wishing to rely on earnings from self-employment as a sole trader, as a partner or in a franchise will need to arrange to file their self-assessment tax return to HMRC on a timescale geared to meeting this requirement of the Immigration Rules rather than the deadline set for UK tax purposes. Similarly, in respect of the Company Tax Return CT600, where the sponsor is a director or other employee of a specified limited company in the UK.

If a person has different financial years, for example, because they are both self- employed and a director or other employee (or both) of a specified limited company, their income from the self-assessment tax return and Company Tax Return financial years cannot be combined to meet the financial requirement. Including income from differently based financial years would not be a fair or accurate way of calculating a person’s annual income. This restriction also applies where a person and their partner have income based on different financial years: the application must rely on both partners’ eligible income in the same financial year or years.

Where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in self-employment, this may include work undertaken overseas, subject to the couple meeting the requirement in paragraph E-LTRP.1.10 of Appendix FM that they intend to live together permanently in the UK and subject to the other requirements of Appendix FM-SE being met.

Income under Category F or Category G can be combined with income from salaried and non-salaried employment, non-employment income and pension income in order to meet the financial requirement. However, unlike with other categories, these sources of income must fall within the relevant financial year or years in order to be included. Under Category F or Category G, all sources of income must fall within the financial year or years relied on and must still be a source of income at the time of application. For example, to count income from property rental the income must have been received during the relevant financial year or years and the property must still be owned by the relevant person at the date of application.

Where a couple are using their joint income to meet the financial requirement, all of this income must fall within the financial year or years being relied on and must still be a source of income at the time of application. For 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 and evidence of ongoing employment at the date of application.

Self-employed income can be cash-in-hand if the correct tax is paid. It would generally be expected that the person’s business or personal bank statements would fully reflect all gross (pre-tax) cash income. Flexibility may only be applied where the decision-maker is satisfied that the cash income relied upon is fully evidenced by the relevant tax return or returns and the accounts information.

Where a person in self-employment, or who is the director of a specified limited company in the UK, also relies on income from other employment (salaried or non- salaried) during the relevant financial year or years, they must also provide evidence of ongoing employment (salaried or non-salaried) at the date of application.

Income from employment as a director of a limited company in the UK of a type specified in paragraph 9(a) of Appendix FM-SE, and dividends from this type of company (where the person is either a director or employee, or both, of that company), will be counted as income under Category F or Category G.

Current cash savings cannot be combined with income under Category F or Category G. The only practical and fair means of evidencing income from self- employment, or as a director or employee of a specified limited company in the UK, involves the provision of information and documentation relating to tax returns.

Therefore, all the income that is counted towards the financial requirement must be drawn from the last one or 2 full financial years. It would not be appropriate to combine that past income with current cash savings held at the date of application. To do so would not be an accurate indicator of the real level of financial resources available to the couple. It could also lead to the same money being counted twice, once as earnings and later as savings.

A self-employed person, or a director or employee of a specified limited company in the UK, who has the necessary level of current cash savings, can use these savings as their sole means of meeting the financial requirement. For information on cash savings, see: Cash savings.

Self-employment or Director or employee of a specified limited company in the UK: further guidance

Appendix F M -S E specifies further requirements for combining income under Category F or Category G with other sources of income:

where the person is self-employed, their gross annual income will be the total of their gross income from their self-employment (and that of their partner if that person is in the UK with permission to work), from any salaried or non-salaried employment they have had or their partner has had (if their partner is in the UK with permission to work), from specified non-employment income received by them or their partner, and from income from a UK or foreign state pension or a private pension received by them or their partner, in the last full financial year or as an average of the last 2 full financial years - the requirements of this appendix for specified evidence relating to these forms of income shall apply as if references to the date of application were references to the end of the relevant financial year or years - the relevant financial year or years cannot be combined with any financial years or years to which paragraph 9 applies and vice versa
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
the provisions of paragraph 13 which apply to self-employment and to a person who is self-employed also apply to income from employment and/or shares in a limited company based in the UK of a type to which paragraph 9 applies and to a person in receipt of such income

Self-employment as a sole trader, as a partner or in a franchise: requirements

A sole trader is a business that is owned and controlled by one person, although they may employ staff. A partnership is where the business is owned by 2 or more people (although equity partners are treated as in salaried employment for the purposes of the financial requirement: see: Salaried and non-salaried employment – general requirements). And a franchise allows a person the right to use an existing business idea.

Where the applicant’s partner is in self-employment overseas and is returning with the applicant to the UK to work, they may rely on continuing their self-employment in the UK or on a confirmed offer of employment in the UK in order to meet the financial requirement. Therefore, if their self-employment income overseas is sufficient to meet the financial requirement, they can also provide evidence either:

that their self-employment is ongoing and will be continuing in the UK
of a confirmed offer of salaried or non-salaried employment in the UK, starting within 3 months of their return - (the specified evidence and calculation for this is explained in salaried and non-salaried section of this guidance)

Appendix F M -S E specifies further requirements for self-employment income:

When calculating income from self-employment under paragraphs 12A and 13(e) this paragraph applies:

there must be evidence of ongoing self-employment, and (where income from salaried employment is also relied upon or where paragraph 9(c) applies) ongoing employment, at the date of application
where the self-employed person is a sole trader or is in a partnership or franchise agreement, the income will be the gross taxable profits from their share of the business in the relevant financial year or years, not including any deductable allowances, expenses or liabilities which may be applied to the gross taxable profits to establish the final tax liability
where income to which paragraph 19 applies is being used to meet the financial requirement for an initial application for permission to stay as a partner under Appendix FM by an applicant who used such income to meet that requirement in an application for entry clearance as a fiancé or fiancée or proposed civil partner under that appendix in the last 12 months, the Secretary of State may continue to accept the same level and evidence of income to which paragraph 19 applies that was accepted in granting the application for entry clearance, provided that there is evidence of ongoing self-employment, and (where income from salaried employment is also relied upon or where paragraph 9(c) applies) ongoing employment, at the date of the application for permission to stay
the financial year or years to which paragraph 7 refers is the period of the last full financial year or years to which the required statement or statements of account (SA300 or SA302) relates

Sole trader, partner or franchise: specified evidence

The evidence required to demonstrate income from self-employment is specified in Appendix F M -S E.

In respect of self-employment in the UK as a partner, as a sole trader or in a franchise, all of the following must be provided:

evidence of the amount of tax payable, paid and unpaid for the last full financial year
the following documents for the last full financial year, or for the last 2 such years (where those documents show the necessary level of gross profit as an average of those 2 years):
- annual self-assessment tax return to HMRC (a copy or print-out); or statement of account (SA300 or SA302)
- proof of registration with HMRC as self-employed if available
- each partner’s Unique Tax Reference Number (UTR) and/or the UTR of the partnership or business
- where the person holds or held a separate business bank account or accounts, bank statements for the same 12-month period as the tax return or returns
- personal bank statements for the same 12-month period as the tax return or returns showing that the income from self-employment has been paid into an account in the name of the person or in the name of the person and their partner jointly

Evidence of ongoing self-employment through the provision of at least one of the following: a bank statement dated no more than 3 months earlier than the date of application showing transactions relating to ongoing trading, or evidence dated no more than 3 months earlier than the date of application of the renewal of a licence to trade or of ongoing payment of business rates, business-related insurance premiums, employer National Insurance contributions or franchise payments to the parent company.

One of the following documents must also be submitted:

if the business is required to produce annual audited accounts, such accounts for the last full financial year
if the business is not required to produce annual audited accounts, unaudited accounts for the last full financial year and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006) or who is a member of the Institute of Financial Accountants, The Association of Authorised Public Accountants, The Chartered Institute of Public Finance and Accountancy, The Chartered Institute of Management Accountants, the Association of International Accountants and The Association of Accounting Technicians
a certificate of VAT registration and the VAT return for the last full financial year (a copy or print-out) confirming the VAT registration number, if turnover is in excess of £85,000 or was in excess of the threshold which applied during the last full financial year
evidence to show appropriate planning permission or local planning authority consent is held to operate the type/class of business at the trading address (where this is a local authority requirement)
a franchise agreement signed by both parties
the document referred to in paragraph 7(h)(iv) must be provided if the organisation is a franchise

If the applicants self-employment is outside of the UK, evidence should be a reasonable equivalent to that set out in paragraph 7.

Self-employment in the UK (for an applicant’s partner or parent’s partner who, in respect of paragraph E-ECP.3.2.(a) or E-ECC.2.2.(a) of Appendix FM, is in self- employment outside the UK at the date of application and is returning to the UK to continue that self-employment), one of the following must be provided, with a starting date within 3 months of the person’s return to the UK:

an application to the appropriate authority for a licence to trade
details of the purchase or rental of business premises
a signed employment contract or a signed contract for the provision of services
a partnership or franchise agreement signed by the relevant parties to the agreement

Director or employee of a specified limited company in the UK: requirements

A limited company is owned by its shareholders. Where such a shareholder is also a director or other employee of the company, they may be paid a salary and receive dividends, which can generally be counted, as appropriate, as employment or nonemployment income under Category A, Category B or Category C. However, if the company is of the type specified in paragraph 9(a) of Appendix F M -S E , the person’s income must instead be considered under Category F or Category G. This is because in a company in sole or limited family ownership there is scope for doubt as to the effective control of the company, as the person is either a director or employee (or both) and a shareholder or the other shareholders are family members of that person. In that case, instead of the employment evidence in Category A or Category B or the dividend evidence in Category C, we need the evidence about the operation of the company required under Category F or Category G.

Paragraph 9(a) of Appendix F M -S E states that the specified type of limited company registered in the UK is one in which:

the person is either a director or employee of the company, or both, or of another company within the same group
shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and any remaining shares are held (directly or indirectly) by fewer than 5 other people

Those who receive a salary and/or dividend income as either a director or employee (or both) of a limited company in the UK of the type specified above must provide all of the relevant specified evidence listed in Self-employment or Director or employee of a specified limited company in the UK. Where the person is not the director of the company but holds another senior position in the company (for example, company secretary), they may be treated in the same way as a director of the company for the purposes of paragraph 9 of Appendix FM-SE.

These specified limited companies referred to in paragraph 9(a) are only those registered in the UK. Where a person is either a director or employee (or both) of a limited company registered overseas, they cannot rely on the provisions for directors of specified limited companies in paragraph 9(a) to meet the financial requirement.

Instead the director of a limited company registered overseas might be able to use their income towards the financial requirement if the income is of a type that qualifies as employment income (see specified evidence in paragraph 3 of Appendix F M -S E ) or income from self-employment (see specified evidence in paragraph 8 of Appendix F M -S E) or as non employment income (see specified evidence in paragraph 10 of Appendix F M -S E).

Appendix F M -S E specifies further requirements for income from employment and/or shares in a specified limited company (as defined in paragraph 9(a)):

Where income to which paragraph 19 applies is being used to meet the financial requirement for an initial application for permission to stay as a partner under Appendix FM by an applicant who used such income to meet that requirement in an application for entry clearance as a fiancé or fiancée or proposed civil partner under that Appendix in the last 12 months, the Secretary of State may continue to accept the same level and evidence of income to which paragraph 19 applies that was accepted in granting the application for entry clearance, provided that there is evidence of ongoing employment at the date of the application for permission to stay.

The financial year or years to which paragraph 9 refers is the period of the last full financial year or years to which the required Company Tax Return(s) CT600 relates.

Director or employee of a specified limited company in the UK: specified evidence

The evidence required to demonstrate income as either a director or employee (or both) of a specified limited company in the UK is specified in Appendix F M -S E.

In respect of income from employment and/or shares in a limited company based in the UK of a type specified in paragraph 9(a), the requirements of paragraph 9(b)-(e) shall apply in place of the requirements of paragraphs 2 and 10(b):

The specified type of limited company is one in which:

the person is a either a director or employee of the company, or both, or of another company within the same group
shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and any remaining shares are held (directly or indirectly) by fewer than 5 other people

All of the following must be provided:

Company Tax Return CT600 (a copy or print-out) for the last full financial year and evidence this has been filed with HMRC, such as electronic or written acknowledgment from HMRC
evidence of registration with the Registrar of Companies at Companies House - if the company is required to produce annual audited accounts, such accounts for the last full financial year
if company is not required to produce annual audited accounts, unaudited accounts for the last full financial year and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006) or who is a member of the Institute of Financial Accountants; Corporate/business bank statements covering the same 12-month period as Company Tax Return CT600

One of the following documents must also be provided:

a certificate of VAT registration and the VAT return for the last full financial year (a copy or a print-out) confirming the VAT registration number, if turnover is in excess of £85,000 or was in excess of the threshold which applied during the last full financial year
proof of ownership or lease of business premises
original proof of registration with HMRC as an employer for the purposes of PAYE and National Insurance, proof of PAYE reference number and Accounts Office reference number - this evidence may be in the form of a certified copy of the documentation issued by HMRC

Where the person is listed as either a director or employee of the company (or both) and receives a salary from the company, all of the following documents must also be provided:

payslips and P60 (if issued) covering the same period as the Company Tax Return CT600
personal bank statements covering the same 12-month period as the Company Tax Return CT600 showing that the salary as either a director or employee of the company (or both) was paid into an account in the name of the person or in the name of the person and their partner jointly

Where the person receives dividends from the company, all of the following documents must also be provided:

dividend vouchers for all dividends declared in favour of the person during or in respect of the period covered by the Company Tax Return CT600 showing the company’s and the person’s details with the person’s net dividend amount and tax credit
personal bank statement or statements showing that those dividends were paid into an account in the name of the person or in the name of the person and their partner jointly
evidence of ongoing employment as a director or other employee of the company or of ongoing dividend income from the company - this evidence may include payslips (or dividend vouchers) and personal bank statements showing that, in the period since the latest 12-month period covered by the Company Tax Return CT600, the person’s salary (or dividend income from the company) as a director or employee of the company (or both), was paid into an account in the name of the person or in the name of the person and their partner jointly. Alternative evidence may include evidence of ongoing payment of business rates, business-related insurance premiums or employer National Insurance contributions in relation to the company

Question 11

Exceptional circumstances

Accepted Answer

Paragraph GEN.3.1.(1) of Appendix FM applies where:

the minimum income requirement under Appendix FM applies and is not met from the specified sources referred to there (in, as appropriate, paragraph E- ECP.3.2., E-LTRP.3.2., E-ECC.2.2. or E-LTRC.2.2.) and all other requirements for the route have been met
it is evident from the information provided by the applicant that there are exceptional circumstances which could render refusal of the application a breach of Article 8 because it could result in unjustifiably harsh consequences for the applicant, their partner or a relevant child

Where the threshold in GEN.3.2.(2) is not met, the decision-maker must go on to consider whether the minimum income requirement is met if other credible and reliable sources of income, financial support or funds available to the couple are taken into account. Those sources, and matters to which the decision maker should have regard when assessing their genuineness, credibility and reliability, are set out in paragraph 21A of Appendix FM-SE. The threshold of such exceptional circumstances (which must be met before other credible and reliable sources of income, financial support or funds can be taken into account) is a high one.). For guidance on when such exceptional circumstances may arise, see exceptional circumstance section of the Family life (as a partner or parent), private life and exceptional circumstances guidance.

If the applicant has not already done so, the decision-maker must contact the applicant (or their legal representative) in writing requesting that they provide information and evidence in writing of any other credible and reliable source or sources of income, financial support or funds available to the couple which enables the minimum income requirement to be met. Such sources can be in addition to, or in place of, the sources of income or funds on which the application initially relied. The decision-maker should request that the information be provided within 14 days of the date of the request.

The decision-maker must consider any information and evidence provided by the applicant as to other sources of income, financial support or funds. Paragraph 21A of Appendix FM-SE sets out the types of source which can be taken into account (in addition to the specified sources referred to in Appendix FM, in, as appropriate, paragraph E-ECP.3.2., E-LTRP.3.2., E-ECC.2.2. or E-LTRC.2.2.).

These are:

a credible guarantee of sustainable financial support to the applicant or their partner from a third party - (this is in addition to the existing provision in paragraph 1(b) of Appendix FM-SE, which permits applicants to rely on certain, narrower forms of third-party support)
credible prospective earnings from the sustainable employment or self- employment of the applicant or their partner - (this is in addition to the existing provision in paragraphs 4, 13(c) and 13(d) of Appendix FM-SE, which permits the applicant’s partner to rely, in the context of an entry clearance application, on a confirmed job offer in the UK in certain circumstances)
any other credible and reliable source of income or funds for the applicant or their partner, which is available to them at the date of application or which will become available to them during the period of permission applied for - this could include, for example, cash savings of the couple (of less than £16,000, or held for less than 6 months at the date of application where paragraph 11(c) or 11(d) of Appendix FM-SE does not apply), or an investment or financial product owned by the couple (for example, an endowment policy which has not yet matured but will pay out within 30 months of the date of application), which Appendix FM-SE does not otherwise permit to be taken into account under the minimum income requirement

Paragraph 21A of Appendix FM-SE also sets out objective criteria to which the decision-maker must have regard in assessing the genuineness, credibility and reliability of the other source or sources of income, financial support or funds on which the applicant relies upon.

The other source or sources of income, financial support or funds must enable the minimum income requirement to be met for entry clearance or permission to stay to be granted on this basis. The other relevant requirements of the Immigration Rules must also be met.

An applicant granted entry clearance or permission to stay on this basis will be on the 10-year partner route to settlement (indefinite leave to remain). That means that the person will not have to meet the minimum income requirement again, in order to complete that route. However, where they are subsequently in a position to meet that requirement, using the usual sources specified in Appendix FM, they can apply in country to switch to start the 5-year partner route.

Where the decision maker is satisfied that:

the minimum income requirement applies
the applicant does not meet it
GEN.3.2.(2) is not met because refusal would not lead to a breach of Article 8
GEN.3.1.(1) is not met because refusal could not lead to a breach of Article 8
GEN.3.1.(1) is not met because although refusal could lead to a breach of Article 8, the financial requirement that takes into account the sources of income, financial support or funds set out in paragraph 21A(2) of Appendix FM- SE (subject to the considerations in sub-paragraphs (3) to (8) of that paragraph), is not met.

the application must be refused under Appendix FM.

Paragraph 21A of Appendix FM-SE contains the following general provisions:

where the applicant is a child, the references in paragraph 21A to ‘applicant’ mean the ‘applicant’s parent’ under paragraph E-ECC.1.6. or E-LTRC.1.6. of Appendix FM and the references to ‘partner’ mean the ‘applicant’s parent’s partner’ under those paragraphs
the onus is on the applicant to satisfy the decision-maker of the genuineness, credibility and reliability of the source of income, financial support or funds relied upon, on the basis of the information and evidence provided

The source of income, financial support or funds must not be a loan, unless evidence submitted with the application shows that, the source is a mortgage on a residential or commercial property in the UK or overseas which at the date of application is owned by the applicant, their partner or both, or by the third party guaranteeing to support them.

If not, the applicant can also provide evidence that, the mortgage is provided by a financial institution regulated by the appropriate regulatory body for the country in which that institution is operating. If the applicant cannot provide the evidence mentioned prior, the evidence can also show that the mortgage payments are “reasonably affordable” by the person or people responsible for them and are likely to remain so for the period of permission applied for.

The decision-maker must make a broad general assessment of this, on the basis of the information and evidence provided by the applicant. They are not expected to, and should not, undertake an exhaustive audit of the person’s financial resources and outgoings.

Any cash savings and any current financial investment or product relied upon by the applicant must, at the date of application, be in the name or names and under the control, of the applicant, their partner or both.

Any cash savings relied upon by the applicant must enable the financial requirement in paragraph E-ECP.3.1.(b), E-LTRP.3.1.(b), E-ECC.2.1.(b) or ELTRC.2.1.(b) of

Appendix FM (as applicable) to be met, except that the criteria in paragraph 21A(7)(c) (set out below) apply in place of the requirements in paragraphs 11 and 11A of Appendix FM-SE (as to the period for which, and the type of account in which, cash savings must otherwise have been held).

This means that, as under Category D above (Category D: cash savings - requirements section of this guidance), the cash savings must equal or exceed an amount which is 2.5 times the shortfall against the minimum income requirement (to cover the period of 2.5 years or 30 months before a further application must be made) plus £16,000 (the level of cash savings which generally means that a person ceases to have access to income-related benefits).

Paragraph 21A of Appendix FM-SE then sets out, in sub-paragraph (8), objective criteria by which the decision-maker will determine the genuineness, credibility and reliability of the other sources of income, financial support or funds. The decision- maker must consider, in light of all the information and evidence provided by the applicant, how far these criteria are met. They are not exhaustive, or necessarily determinative: rather, the decision-maker must consider each case in the round in light of its individual circumstances, bearing in mind the information and evidence provided by the applicant.

Thus, the decision-maker should not refuse to accept a source which they are otherwise satisfied is genuine, credible and reliable simply because none (or few) of the relevant criteria are met. But, generally speaking, the more the relevant criteria are met, the more likely the decision-maker will be to determine that the source in question is genuine, credible and reliable, such that it should be counted towards the minimum income requirement.

Credible guarantee of sustainable financial support to the applicant or their partner from a third party

In relation those objective criteria, where the other source of income is said to be a guarantee of sustainable financial support from a third party, the decision-maker must consider (in particular):

whether the applicant has provided verifiable documentary evidence from the third party in question of their guarantee of financial support
whether that evidence is signed, dated and witnessed or otherwise independently verified
whether the third party has provided sufficient evidence of their general financial situation to enable the decision-maker to assess the likelihood of the guaranteed financial support continuing for the period of permission applied for
whether the third party has provided verifiable documentary evidence of the nature, extent and duration of any current or previous financial support which they have provided to the applicant or their partner

Decision makers must also consider the extent to which this source of financial support is relied upon by the applicant to meet the minimum income requirement under Appendix FM. This is because it is necessary to assess the extent of the risk that the requirement will not, in fact, continue to be met over the whole course of the applicant’s permission, because the source proves not to be genuine or sustainable such as:

the likelihood or otherwise of a change in the third party’s financial situation
or in their relationship with the applicant or the applicant’s partner during the period of permission applied for

Credible prospective earnings from the sustainable employment or self-employment of the applicant or their partner

Where the other source of income is the prospective earnings from sustainable employment or self-employment of the applicant or their partner, the decision-maker must consider (in particular):

whether, at the date of application, a specific offer of employment has been made
or a clear basis for self-employment exists, in either case, such employment or self-employment must be expected to commence within 3 months of the applicant’s arrival in the UK (if the applicant is applying for entry clearance)
or within 3 months of the date of application (if the applicant is applying for permission to remain)

Where the applicant has provided verifiable documentary evidence of the offer of employment or the basis for self-employment, and, if so, whether that evidence:

is on the headed notepaper of the company or other organisation offering the employment, or of a company or other organisation which has agreed to purchase the goods or services of the applicant or their partner as a self- employed person
is signed, dated and witnessed or otherwise independently verified
includes (in respect of an offer of employment) a signed or draft contract of employment
includes (in respect of self-employment) a signed or draft contract for the provision of goods or services; a signed or draft partnership or franchise agreement; an application to the appropriate authority for a licence to trade; or details of the agreed or proposed purchase or rental of business premises

Where the applicant has an offer of employment in the UK, the applicant has provided verifiable documentary evidence, for example, a signed and dated letter on their headed notepaper from the employer, this must be from a relevant employment advertisement and employment application. This is to enable us to establish that the vacancy is a genuine one, which will genuinely be filled by the applicant or their partner.

It does not mean that the employment has to be of a particular skill level, provided that the relevant person is equal to the job. Moreover, it does not mean that the offer of employment can only be regarded as genuine, credible and reliable if there has been a formal advertisement and application process. For example, in the case of a small business run by a family member or friend of the applicant or their partner it may be inappropriate to expect an advertisement to have been issued and a formal application made. In those circumstances, the decision-maker should seek to satisfy themselves that the offer of employment is genuine, credible and reliable with reference to other information and evidence provided by the applicant.

The hours to be worked and the rate of gross pay, which that evidence must establish equals or exceeds the National Living Wage or the National Minimum Wage (as applicable, given the age of the person to be employed) and equals or exceeds the going rate for such work in that part of the UK, based. Where possible, the information should be from Jobcentre Plus, a relevant trade or professional body or a reputable employment agency. This enables the decision-maker to assess the reliability of the offer of employment, including in light of the total size of the workforce and the turnover (annual gross income or sales) of the relevant company or other organisation.

The decision-maker must decide whether the applicant has provided verifiable documentary evidence at the date of application. The evidence must show the person to be employed or self-employed, or has recently been in, sustained employment or self-employment of the same or a similar type, of the same or a similar level of complexity and at the same or a similar level of responsibility.

The applicant should also provide verifiable documentary evidence that the person to be employed or self-employed has relevant professional, occupational or educational qualifications and that these are recognised in the UK.

The decision-maker must also identify whether the applicant has provided verifiable documentary evidence that the person to be employed or self-employed has the level of English language skills such prospective employment or self-employment is likely to require. For example, this may include evidence of nationality of a majority English-speaking country, of educational qualifications taught or researched in English or of passing a secure English language test at or above the relevant level of the Common European Framework of Reference for Languages with a Home Office- approved test provider.

Decision makers must also consider the extent to which this source of income is relied upon by the applicant to meet the minimum income requirement under Appendix FM. This is because it is necessary to assess the extent of the risk that the requirement will not, in fact, continue to be met over the whole course of the applicant’s permission, because the source proves not to be genuine or sustainable. Where an offer of employment is relied upon, and where the proposed employer is a family member or friend of the applicant or their partner, the likelihood or otherwise of a relevant change in that relationship during the period of limited permission applied for.

Other credible and reliable source of income or funds for the applicant or their partner

Where the other source of income is any other credible and reliable source of income or funds for the applicant or their partner, the decision-maker must consider (in particular):

whether the applicant has provided verifiable documentary evidence of the source
whether that evidence is provided by a financial institution regulated by the appropriate regulatory body for the country in which that institution is operating, and is signed, dated and witnessed or otherwise independently verified
where the income is or the funds are based on, or derived from, ownership of an asset, whether or not the applicant has provided verifiable documentary evidence of its current or previous ownership by the applicant, their partner or both
whether the applicant has provided sufficient evidence to enable the decisionmaker to assess the likelihood of the source of income or funds being available to them during the period of permission applied for

Decision makers must also consider the extent to which this source of income or funds is relied upon by the applicant to meet the minimum income requirement under Appendix FM. This is because it is necessary to assess the extent of the risk that the requirement will not, in fact, continue to be met over the whole course of the applicant’s permission, because the source proves not to be genuine or sustainable.

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Changes from last version of this guidance

Introduction

Who needs to meet the financial requirement?

Applicants under Appendix FM and Part 8 of the Immigration Rules

Applicants under Appendix HM Armed Forces

Calculating the minimum income requirement

Table 1: Transitional arrangements for Appendix FM partner applications made on or after 11 April 2024.

Financial requirement for an applicant who is making their first application under Appendix FM on the partner route on or after 11 April 2024, or who is applying to remain with a new partner

Table 2: The threshold that applies to families, dependent on the number of relevant children.

Financial requirement for children applying on any date under Appendix FM

Applications submitted before 11 April 2024 under Appendix FM

Table 3: The threshold that applies to families with up to 5 relevant children.

First applications on or after 11 April 2024 as the partner or child of a member of HM Armed Forces or an HM Armed Forces service leaver

Transitional arrangements for those who have already applied for permission as the partner or child of a member of HM Armed Forces or an HM Armed Forces service leaver

Operating principles

Meeting the financial requirement

The level of the financial requirement

Evidence requirements: general information

Evidential flexibility

Conversion of foreign currency

Currencies where FCDO CER should be used

Using the FCDO CER

Meeting the financial requirement through ‘adequate maintenance’

Sources for meeting the financial requirement

Sources of income not permitted

Salaried and non-salaried employment

Category A: With current employer for 6 months or more - person residing in the UK

Case studies – Category A: With current employer for 6 months or more – person residing in the UK

Example (b)

Example (c)

Category A: With current employer for 6 months or more – overseas sponsor returning to the UK

Case studies – Category A: With current employer for 6 months or more – overseas sponsor returning to the UK

Example (a)

Example (b)

Example (c)

Example (d)

Category B: Less than 6 months with current employer or variable income – person residing in the UK

Case studies – Category B: Less than 6 months with current employer or variable income – person residing in the UK

Example (a)

Example (b)

Example (c)

Example (d)

Category B: Less than 6 months with current employer or variable income – overseas sponsor returning to the UK

Case study – Category B: Less than 6 months with current employer or variable income – overseas sponsor returning to the UK

Example (a)

Salaried and non-salaried employment: general requirements

Case study – Calculation of commission-based pay

Example (a)

Case studies – Maternity, paternity, adoption, parental and sick leave

Example (a)

Example (b)

Salaried and non-salaried employment: specified evidence

Non-employment income

Category C: Non-employment income – requirements

Property rental: further guidance

Dividends and other investment income: further guidance

Maintenance grant or stipend: further guidance

Non-employment income: specified evidence

Cash savings

Category D: cash savings – requirements

Calculating cash savings: Appendix FM

Table 4: Examples where cash savings are being used to meet the £18,600 threshold

Table 5: Examples where cash savings are being used to meet the £29,000 threshold

Calculating cash savings: Appendix Armed Forces

Table 6: Examples of Armed Forces cash savings calculations when the £18,600 threshold applies.

Table 7: Examples of Armed Forces cash savings calculations when the £23,496 threshold applies.

Cash savings: further guidance

Case studies – Cash savings previously held as investments or property

Example (a)

Example (b)

Cash savings: specified evidence

Pension

Category E: Pension – requirements

Pension: Specified evidence

Self-employment or Director or employee of a specified limited company in the UK

Category F: Last full financial year