Meeting the Spouse Visa Financial Requirement as a Director of a Limited Company
In July 2012, following on from the report from the Migration Advisory Committee, a minimum income threshold was introduced in respect of sponsorship under the family migration route as set out within Appendix FM of the Immigration Rules. A minimum threshold of £18,600 was set, with additional amounts for any ‘relevant’ children. On 11 April 2024, the minimum income requirement for a UK spouse, partner or family visa was increased to £29,000, while the separate child element was removed.
Appendix FM-SE of the Immigration Rules sets out various evidential requirements which must be met in order to satisfy the Appendix FM financial requirement. Different evidential requirements will apply depending on the particular circumstances of the applicant and/or their partner. In this post we examine how to satisfy the spouse visa financial requirement as a director of a UK limited company.
Meeting the Spouse Visa Financial Requirement as a Director of a UK Limited Company
Limited companies are owned by their shareholders. A director employed by the company may well be a shareholder and, generally, this income can be counted as employment or non-employment income under Appendix FM-SE where the evidential requirements are relatively straightforward.
However, where the business is a ‘specified’ limited company, as defined by paragraph 9(a) of Appendix FM-SE, the application will be assessed in a different way under the Immigration Rules. The rationale for this is set out within the Home Office’s Guidance ‘Family Migration: Appendix FM and Appendix HM Armed Forces Minimum income requirement’ which states:
‘[…] 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.’
What, then, is a ‘specified’ limited company? Paragraph 9(a) of Appendix FM-SE states that a ‘specified’ 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); and
- 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.
If the company is one that meets the above definition then the director (or employee) must provide all of the documentation set out within paragraph 9(b) of Appendix FM-SE must be provided.
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.
Where the person is a director (or employee) of a limited company registered overseas (i.e. not in the UK), 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 or income from self-employment or as non employment income. Our immigration barristers can advise further on the requirements for an application on any of these bases.
It is important to note that the director of a UK specified limited company can only rely on the income that they have received during the company’s most recent financial year. As companies can, and often do, set their own financial year, this may well be different to the fiscal year which runs from 6 April to 5 April.
A director who receives a salary and dividend income will need to provide, amongst other things:
- Payslips showing salary payments during the company’s most recent financial year;
- Dividend vouchers in respect of dividend payments declared in their favour during the company’s most recent financial year;
- Personal bank statements showing receipt of the salary and/or dividend income.
In addition to evidencing the income received from the business, it is necessary to provide evidence regarding the operation of the company so as to demonstrate that the applicant and/or their partner has ‘effective control’ over the business.
Because the company’s financial year can be for any 12 month period, the end of the relevant financial year may well be many months before the date of the actual application for entry clearance or leave to remain as a partner. In this regard, the Immigration Rules require evidence of ongoing employment as a director of the company or of the ongoing receipt of dividend income from the company must also be provided. This evidence can include, but is not limited to, recent payslips and/or dividend vouchers since the financial year ended.
It is therefore important to ensure that if a person is employed as a director of a specified limited company that they are mindful of the strict evidential requirements that must be met so as to ensure that the correct evidence can be provided to demonstrate that the requirements of the Immigration Rules are met.
Contact Our Immigration Barristers
If you would like further advice on an application for entry clearance or leave to remain as a partner under Appendix FM of the Immigration Rules, or in relation to any other immigration matter, then please contact our immigration barristers in London on 0203 617 9173 or via the contact form below.
