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Regarding the Maintenance Requirements for the UK Spouse visa: As a self-employed consultant, my husband is going to have to show that he has earned at least £18,600 (gross profit, I believe) in order to sponsor me in the UK. However, does this gross profit figure include the standard Personal Allowance (which you can earn tax-free per year) of £8,105 for the tax year 2012/13? For example, he has already earned over £20,000 and will most likely earn at least £40,000 by April 2013. But being self-employed, he obviously wants to pay as little tax as is needed, so he would like to claim as many business expenses as possible. We were hoping that he could show a gross profit of £18,600 by claiming enough business expenses (of which he has many!) on the full £40,000 figure. Considering the tax-free Personal Allowance, however, does that mean that he will have to pay tax on the minimum £18,600 needed PLUS £8,105 (the Personal Allowance figure), ie. show a gross profit of £26,705 in total to meet the Maintenance Requirement? Or does the first £8,105 he earns count as both a profit for immigrations purposes AND tax-free for tax purposes (ie. the best of both worlds)? Thanks!
EDIT: Apologies, I forgot to add: If at all possible, could you please send me a link/attachment of written proof to back up your answer, just so that I have something to quote directly to the UKBA (their helpline agents give out incorrect and conflicting information ALL the time)? Thanks :)
Hi, thank you for your quick reply.
I do need to know the exact FIGURE you are talking about. I need to know the minimum figure he needs to pay tax on.
Is it £18,600 (gross profit, NOT including any expenses)?
Or is it £26,705 (ie. £18,600 + £8,105 for 2012/13)?
Hi, sorry - we're still not 100% certain about this.
For example, if the Tax Calculation for 2012/13 reads (I am writing it in the template from last year's tax calculation - I assume this is what it would read):
Tax Calculation for 2012/13
Income received (before tax taken off)
Profit from self-employment: £18,600
Total income received: £18,600
*minus Personal Allowance*: £8,105
Total income on which tax is due: £10,495
How I have worked out your Income Tax
Total income on which tax has been charged: £10,495
Income Tax due: £?
See? We are worried that even showing a "profit" of £18,600 (brought down from the full £40,000 by deducting business expenses) makes it look like we only paid tax on £10,495 because of the Personal Allowance of £8,105!
It does say in the UKBA's Statement of Intent: Family Migration:
"73. The Migration Advisory Committee recommended that the minimum gross annual income for sponsoring a partner, without dependants, should be set at between £18,600 (the level at which in most cases a couple receive no income-related benefits) and £25,700 (the level at which the sponsor is a net contributor to the public finances)."
As this document was written last year, that £25,700 figure would probably be updated as £26,705 (since the new tax-free Personal Allowance for 2012/13 went up to £8,105).
Anyway, can you please comment on whether you are 100% certain that based on the above Tax Calculation template, we would definitely qualify as meeting the Financial Requirement? Otherwise, my initial point was correct and we WILL have to show a gross profit (post-expenses but pre-tax) of £26,705 and not £18,600 as you suggested.
As you mentioned, it is still not 100% clear - I think this is due to the UKBA's guidelines being unclear.
We have decided to write a formal letter to the UKBA and hopefully receive a definite answer - we will provide their answer here if possible.
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