1. Understanding the Financial Requirement for UK Partner and Family Visas
In this article, we will examine different time periods for the financial requirement in partner and family visa applications. Partner and Family visa applications under Appendix FM have a financial requirement that must be satisfied (along with the other requirements) to ensure a successful application. Currently, the level of income required is a gross annual income of £29,000, or £88,500 in cash savings.
The financial requirement can be one of the more complex and onerous requirements of Partner and Family visa applications. This article will focus particularly on the different time periods involved when relying on certain categories to satisfy the financial requirement, as well as timings when combining categories and different sources of income to satisfy the financial requirement.
2. Category A: Financial Requirement for Salaried and Non-Salaried Employment
With current employer for 6 months or more – person residing in the UK
'Category A' is categorised as salaried or non-salaried employment income. Non-salaried employment includes individuals paid on an hourly basis or another variable rate (where the number and/or pattern of required work hours 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.
'Category A' is relevant where the applicant's partner (and/or the applicant if they are in the UK with permission to work) is in salaried/non-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. If this applies, they can count their gross annual salary towards the financial requirement.
The key element with regards to timing for Category A application is that the individual whose employment is being relied upon must have been employed with the same employer for at least 6 months. The application evidence must consist of 6 months of payslips and 6 months of corresponding bank statements prior to the date of application.
Alternatively, if the person has been employed by their current employer for less than 6 months, then they could alternatively apply under Category B, subject to meeting those requirements (please see below).
To find out more about Category A applications, please refer to our previous article UK Partner & Family Visa Financial Requirement: Employment Income.
3. Returning Sponsors/Partners: Financial Requirements for Overseas Sponsors Returning to the UK
Where the applicant's partner is returning with the applicant to the UK to work, they must meet 2 requirements, one of which is forward facing, the other is backward facing.
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.
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.
Both the current employment and prospective employment must have a gross annual salary or income which equals or exceeds the level relied upon in the application (currently £29,000).
To find out more about returning sponsors, please refer to our previous article Meeting the Financial Requirement for a UK Spouse Visa as a Returning Spouse – Part 2
4. Category B: Salaried and Non-salaried Employment Requirements
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 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 earn a variable income and wish to be considered in this category rather than under Category A above.
Where the applicant's partner and/or the applicant 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. Normally, the latest payslips or employment contract will evidence the gross annual salary at the date of application.
As well as the gross annual salary at the date of the application, an applicant must demonstrate that their actual gross annual income received in the last 12 months exceeds the minimum income threshold (£29,000).
5. Less Than 6 Months with Current Employer or Variable Income – Returning Overseas Sponsor
As above, the Applicant's partner will need a confirmed offer of salaried or non-salaried employment in the UK starting within 3 months of the expected date of arrival. The couple returning to the UK must also have received in the 12 months prior to the date of application the gross level of income from overseas required (£29,000).
The main distinction between Category A and B for a returning overseas sponsor is that they can satisfy the financial requirement through prospective employment, even if they are not in employment at the date of the application.
To find out more about Category B applications, please see our previous article.
6. Category D: Meeting the Financial Requirement Through Cash Savings
Category D relates to cash savings held above £16,000 which are held in the Applicant or Applicant's partner's name for at least the 6 months prior to the date of application. Currently the level of cash savings required is £88,500 (unless being combined with another source of permitted income).
The key evidence to provide is 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.
To find out more about cash savings, please see our previous article Family & Partner Visa Financial Requirement: Cash Savings.
7. Liquidated Investments to Meet Financial Requirements
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. The funds must be 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 investments can be liquidated at any time before the application.
6 months worth of specified evidence will be required if relying on liquidated investments.
To find out more about liquidated investments, please see our previous article here.
8. Meeting Financial Requirements with Proceeds from Property Sales
The principle above also applies for the sale of property. If the applicant/partner owned property and sold it prior to the application to produce cash savings, the time during which the property was held in ownership can count towards the 6-month period required. Meaning, theoretically, the applicant/partner can rely on the sale of property even if the sale of proceeds was received on the date of application, so long as they owned the property 6 months prior to the date of application.
To find out more about selling assets, please refer to our previous article relating to spouse visa financial requirements.
9. Category C: Non-Employment Income Options
Property Rental Income
A couple may rely on income received from renting a property to meet the financial requirement. This will be based on the income received from the property during the 12 months leading up to the date of application. You will need to provide 12 months of bank statements showing the rental income being paid prior to the date of application.
As of the date of the application, the property must be held in the name of the applicant, the sponsor/partner, or both jointly.
You may find our previous article on property rental income useful.
10. Category E: Meeting Financial Requirements with Pension Income
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.
The annual pension income may be counted where the pension has become a source of income at least 28 days prior to the application.
To rely on Category E to satisfy the financial requirement you will need official documentation from DWP, other government departments or agencies, an overseas pension authority or a pension company, confirming the pension entitlement and amount. You will also need 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.
To find out more about pension income, please refer to our previous article on the subject.
11. Category F: Financial Requirements for the Last Full Financial Year
Self-employed individuals can rely upon the income from the last full financial year, at the date of application, to meet the financial requirement.
12. Category G: Financial Requirements Based on the Average of the Last Two Financial Years
Self-employed individuals can rely upon the average income received in the last two full financial years, at the date of application, to meet the requirement. This is particularly helpful if an applicant is unable to meet the financial requirement through Category F.
13. Understanding the Definition of 'Financial Year' for Visa Applications
HM Revenue and Customs fiscal year: In the UK, self-employment as a sole trader, as a partner or in a franchise is covered by the self-assessment tax return (SA300/SA302), running from 6 April to 5 April the following year. Thus, applicants must submit financial documents that align with this period to demonstrate they meet the income threshold. If an applicant is relying on their partner's income from self-employment outside of the UK, the taxation system and periods of that country may be different.
Company Financial Year: In the UK, those employed as a director or an employee (or both) of a specified limited company, the relevant financial year will be the year shown on the Company Tax return CT600, corresponding to the 12-month accounting year of the company. This may be different from the HM Revenue Customs fiscal year outlined above (6 April to 5 April), and depends on when the company was set up.
Some examples of evidence that is time constraint includes:
- relevant self-assessment tax and company tax returns for the financial year(s) relied upon;
- annual audited/unaudited accounts (as required) for the financial year(s) relied upon;
- corporate/business bank statements covering the same 12-month period(s);
- payslips and P60 (if issued) for the relevant period;
- dividend vouchers for all dividends declared during the period of the Company Tax return CT600;
- corresponding personal bank statements showing the salary/dividends being paid.
Evidence of income outside the specified financial year period is generally inadmissible when calculating earnings. The case of Hameed (Appendix FM – financial year) [2014] UKUT 00266 (IAC), confirmed that the financial year must coincide with the financial tax year (in this particular case the HMRC fiscal tax year), not the financial year selected for accounting purposes.
In an unreported case before the Upper Tribunal, [2017] UKAITUR HU89522015, it was suggested an applicant must rely on documentation covering the full financial year. Thus, an applicant cannot rely on documentation that only partially covers the financial year period. The full 12 months of documentation must be provided for the financial years outlined above for Category F and G applications.
Find out more about self-employment income. To find out more about the Hameed case with further details in our article.
14. Combining Multiple Income Sources to Meet Financial Requirements
An applicant also cannot combine their self-employed income with their partner's self-employed income if they are each based on different financial years. Thus, if the applicant and their partner's self-employment income align in the same financial year, both can be combined and relied upon.
You may combine income under Category F or Category G with income from salaried and non-salaried employment, non-employment income and pension income in order to meet the financial requirement. However, these combined sources of income must be from the same financial year(s) and they must still be a source of income at the date of application in order to be included.
You can potentially combine Category A (salaried employment) with Category F (employment from a specified limited company). However, Category A can only be combined with Category F if both sources of income fall within the relevant financial year(s). Under Category F, all sources of income must fall within the financial year or years reliedon and must still be a source of income at the time of application.
For example, if an applicant/partner is self-employed/employed and also employed with a family business company, they cannot be combined unless they fall in the same financial year.
To find out more about which sources of incomes can be combined for the financial requirement, please read our refer to our article Combining Sources of Income to Meet the Partner & Family Visa Financial Requirement.
15. Understanding the 28-Day Rule for Financial Evidence
Generally, Appendix FM-SE requires that financial evidence, or the most recently dated part of it, must be dated no earlier than 28 days before the date of application.
16. Contact Our Immigration Barristers
In this article we have highlighted some of the key timings to consider in relation to the financial requirement in family and partner visa applications under Appendix FM of the immigration rules. Our immigration barristers can assist you with ensuring that the relevant time periods and evidence are adhered to in line with those outlined in Appendix FM-SE. For expert advice in relation to a UK visa application or immigration appeal, contact our immigration barristers on 0203 617 9173 or complete our enquiry form below.
17. Frequently Asked Questions
What is the financial requirement for a UK Partner or Family Visa?
The financial requirement for a UK Partner or Family Visa is a gross annual income of at least £29,000, or £85,500 in cash savings. This must be met to ensure a successful application under Appendix FM.
Can I rely on my salary to meet the financial requirement?
Yes, if you or your partner are in salaried or non-salaried employment and have been with the same employer for at least 6 months, you can count the gross annual salary towards the financial requirement. Evidence of 6 months' payslips and bank statements will be needed.
What if I haven't been with my current employer for 6 months?
If you or your partner have been with the current employer for less than 6 months, you can still apply under Category B, but you must meet other criteria, such as showing that your income in the last 12 months exceeded £29,000.
Can I use my partner's income to meet the financial requirement?
Yes, if your partner is employed or self-employed, you can rely on their income to meet the financial requirement, provided the income meets the £29,000 threshold. You must provide the necessary evidence, including employment contracts, payslips, and bank statements.
Can I combine income from different sources to meet the requirement?
Yes, you can combine income from different sources such as salaried employment, self-employment, pension income, or rental income, as long as all sources come from the same financial year and are still ongoing at the time of the application.
What is Category D: Cash Savings?
Category D allows you to meet the financial requirement through cash savings. The savings must be held in the applicant's or their partner's name for at least 6 months before the application. The required amount of cash savings is £88,500.
Can I use liquidated investments or property sale proceeds to meet the financial requirement?
Yes, funds from liquidated investments (such as pensions, stocks, or bonds) or the sale of property can count towards the financial requirement, provided the funds have been under the control of the applicant or partner for at least 6 months before the application.
What if I am self-employed?
Self-employed individuals can use income from the last full financial year (Category F) or the average of the last two full financial years (Category G) to meet the financial requirement. Documentation, including tax returns and bank statements, will be required.
What is the 28-day rule for financial evidence?
Financial evidence must generally be dated no earlier than 28 days before the date of your visa application. Ensure that all evidence submitted complies with this rule to avoid delays.
How do I prove my pension income?
To use pension income, you must show that the pension has been a source of income for at least 28 days before the application. You will need official documentation confirming the pension entitlement and amount, along with at least one bank statement showing the pension payments.
Can I rely on rental income to meet the financial requirement?
Yes, rental income from a property can be counted towards the financial requirement. You must provide 12 months of bank statements showing the rental payments.
What happens if I'm returning to the UK from overseas?
If your partner is returning to the UK to work, they must have
been employed with the same employer for at least 6 months before
the application, and must also have a confirmed offer of employment
in the UK, starting within 3 months of their return. Both the
current and prospective employment must meet the £29,000
income threshold.
Alternatively, the returning sponsor must have a confirmed offer of
employment in the UK starting within 3 months of their return and
received in the 12 months prior to the application £29,000
(either from employment, non-employment income, cash savings, or
pension income, or a combination of either). The confirmed offer of
employment must have an annual salary of £29,000.
Can I combine income from different financial years?
No, you cannot combine income from different financial years. Income must be from the same financial year, and you must provide evidence that the income was ongoing at the time of application.
What is the definition of the financial year for visa applications?
For self-employment, the financial year runs from 6 April to 5 April the following year. If relying on company income, the relevant financial year will be the 12-month accounting period used by the company.
What evidence do I need for my financial requirement?
You must provide documents such as payslips, employment contracts, bank statements, tax returns, and other relevant financial records depending on the category of income you are using to meet the requirement.
18. Glossary
Appendix FM: A section of the UK Immigration Rules that outlines the requirements for partner and family visas, including the financial requirements for applicants and sponsors.
Financial Requirement: The minimum income or savings level an applicant or their sponsor must meet to qualify for a UK partner or family visa. This typically includes a gross annual income of £29,000 or savings of £85,500.
Category A: Refers to applicants whose income comes from salaried or non-salaried employment, and they have been with the same employer for at least 6 months prior to their application. They can use their gross annual salary to meet the financial requirement.
Category B: Refers to applicants who have been employed for less than 6 months, or whose income fluctuates. In this category, the applicant can use their current gross annual salary, but must also demonstrate their income from the last 12 months exceeds the required threshold.
Category C: Refers to income from non-employment sources, such as rental income from property. This income must be shown over the 12 months leading up to the date of application.
Category D: Refers to meeting the financial requirement through cash savings. The required savings amount is £88,500, and the savings must be held for at least 6 months prior to the application.
Category E: Refers to meeting the financial requirement with pension income. The pension must have been a source of income for at least 28 days prior to the application.
Category F: Refers to self-employed individuals using income from the most recent full financial year to meet the financial requirement.
Category G: Refers to self-employed individuals using the average income from the last two full financial years to meet the financial requirement.
Confirmed Offer of Employment: A job offer that the applicant or their partner has received for employment in the UK, which must be within 3 months of their return, if they are returning to the UK.
Cash Savings: Money in a personal or joint bank account that can be used to meet the financial requirement. The savings must be held for at least 6 months prior to the application.
Liquidated Investments: Funds from investments such as stocks, shares, or pension pots that have been converted into cash savings. These must be in the applicant's or their partner's name and held for 6 months before the application.
Non-Employment Income: Income from sources other than employment, such as rental income, dividends, or pension income, which can be used to meet the financial requirement.
Property Sale Proceeds: Money obtained from selling property. This can count towards meeting the financial requirement if the property was owned for at least 6 months prior to the application.
Self-Employed: Individuals who work for themselves, rather than as employees. They can use income from self-employment to meet the financial requirement.
Tax Year: The UK's fiscal year for tax purposes, running from 6 April to 5 April of the following year. This is used to assess self-employment income.
28-Day Rule: The requirement that the most recent financial evidence submitted with the application must be no older than 28 days before the application date.
Evidence of Income: Documentation required to prove income, such as payslips, bank statements, tax returns, or pension documents, depending on the income category.
Sponsor: The UK-based individual who is supporting the visa application, typically the applicant's partner or family member.
Gross Annual Income: The total income before deductions, which must meet the minimum income threshold for the financial requirement.
Variable Income: Income that changes based on factors such as work hours, commissions, or bonuses.
P60: A document issued by an employer in the UK that summarises an employee's earnings and tax deductions for the tax year. It can be used as proof of income.
Self-Assessment Tax Return: A tax return form used by self-employed individuals (or those with complex tax affairs) to report their income and expenses to HMRC.
HMRC: Her Majesty's Revenue and Customs, the UK government department responsible for tax collection, including self-assessment, VAT, and National Insurance contributions.
Corporate/Business Bank Statements: Bank statements showing the financial transactions of a business, which may be used to demonstrate income for self-employed individuals or company directors.
Sponsorship: The act of supporting an applicant's visa application, usually involving a financial commitment to meet the visa requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.