Spouse Visa Financial Requirement: Company Director
When applying for entry clearance or leave to remain as a spouse, an applicant has to show how they meet the spouse visa financial requirement of Appendix FM of the Immigration Rules. There are many ways in which the financial requirement can be met, one of which is through earnings from being a director or an employee of a specified limited company.
Spouse visa financial requirement
In order to satisfy the spouse visa financial requirement, applicants must show that the Sponsor earns at least £18,600 in an entry clearance application, in accordance with paragraph E-ECP.3.1 of the Immigration Rules. The Applicant’s own income can be relied upon in an extension application, however an income of £18,600 must still be shown in accordance with E-LTRP.3.1.
It should also be noted that there are additional financial requirements when there are dependants upon an application. The financial requirements when children are involved are set out in this blog.
What is a specified limited company?
Paragraph 9(a) of Appendix FM-SE of the Immigration Rules sets out the definition of a specified limited company as being one where:
(i) the person is either a director or employee of the company, or both, or of another company within the same group; and
(ii) 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
(iii) any remaining shares are held (directly or indirectly) by fewer than five other persons.
If the earnings an applicant seeks to rely upon have derived from employment, shares or dividends from a specified limited company then the requirements of Paragraph 9(b)-(e) will apply and the specified evidence set out in this paragraph must be provided.
What period to cover?
According to Home Office guidance on how to meet the financial requirement, where the Applicant’s partner (and / or the Applicant if in the UK) is a director or an employee of a specified limited company in the UK, they can rely on the income from the last full financial year to meet the financial requirement. Where the business has been running for long enough, applicants may choose to rely upon an average of the income received in the last two financial years.
Receiving a salary and dividends
Where the person whose income the applicant seeks to reply upon is either listed as a director of the company or is an employee, or indeed both, and receives a salary from the company, there are additional evidential requirements under paragraph 9 (c) of Appendix FM-SE. Where dividends are received, paragraph 9 (d) of Appendix FM-SE sets out the evidential requirements.
Among other requirements, directors and employees of specified limited companies who take a salary are required to supply payslips issued during the most recent financial year. Where dividends are received, dividend vouchers for all dividends declared in favour of that person in the same period as the CT600 must be included. Personal bank statements showing receipt of dividends and salary payments must also be included.
Evidential requirements for bank statements
Bank statements have their own evidential requirements in order to meet the Rules. These are set out in paragraph 1 of Appendix FM-SE. Alternatives to bank statements can be submitted, however, there are also evidential requirements that must be met which are set out in the same paragraph.
Ongoing employment as director of other employee of a company
Ongoing employment as a director of other employee of a specified limited company or ongoing receipt of dividends also needs to be evidenced for the purpose of an application, in accordance with paragraph 19(e) of Appendix FM – SE.
Not supplying specified evidence
Not supplying the above evidence can risk an application being refused. Therefore, it is imperative that any application which seeks to rely on earnings from being a director or employee of a specified limited company includes all of the specified evidence.
Contact our Spouse Visa Immigration Barristers
For expert advice and assistance in relation to the spouse visa financial requirement or an application for entry clearance, leave to remain or settlement as a spouse, contact our immigration barristers in London on 0203 617 9173 or via our enquiry form.