Help calculating my financial requirement

Hi everyone,

I am currently gathering documents ready for my wife and stepson's settlement visas. Regarding the financial requirement, i think i have calculated correctly, but i am paid weekly, and it doesn't seem as straight forward as monthly payments, so i want to be 100% sure.

I am paid hourly, not salaried, and contracted to a minimum 39 hours per week. As i am paid weekly, i have worked the conversion as so:

26/6 *12 = £21000 gross (26 payslips divided by 6 months relied upon, times 12 months, for estimated annual gross salary of £21000)

The financial requirement for wife and stepson is £22400 SO £22400 - £21000 = £1400 * 2.5 = £3500 + £16000 = £19500 needed as cash saving to meet the shortfall in salary.

Does that look right to you? Also what category do i go under when applying? As far as declaring the cash savings, my auntie, and my brother, gave me a cash gift of £10000 each over a year ago. I have held it for over a year. I was going to get them to write a letter stating that they gave me the money as a gift to help with the visa application, along with my bank statements that correspond with when the money went in my account. Is that enough to satisfy when declaring the source?

Lastly with the employers letter, can someone explain b (iii) please:

"b)(iii) the period over which they have been or were paid the level of salary relied
upon in the application"
What exactly does that mean?

Thanks guys

@bigmac is our resident financial calculator, I'm sure he will be along soon to have a look at your calculations. When calculating savings, the first £16,000 in your account doesn't count as this is the cut off point for not being able to receive benefits in the UK. It is a good idea to explain where the savings came from, I would include the bank statements showing the gift from your family. You have held the money in your account for over six months so that's good.

You need a letter from your employer (company headed paper) stating how long you have worked for the company, whether you are employed on a temporary/permanent basis, how much you are paid and how long you have been paid that amount for. Regarding your payslips, you will have to submit 26 if paid weekly. I have read here at BF that the UKVI take the lowest paid payslip that you submit and in your case x it by 52 to see you meet the financial requirement, that makes sense but I'm not sure how true that is. Make sure that all the financial documents you submit are current, they do say that your bank statements, payslips and so on should not be more than 28 days old on submission.

If you are using savings to make up the shortfall you will be applying using salaried employment and cash savings.

You have no holidays?

The financial requirement for wife and stepson is £22400 SO £22400 - £21000 = £1400 * 2.5 = £3500 + £16000 = £19500 needed as cash saving to meet the shortfall in salary.

yes--that calculation is right.

include a note in your visa app about where your savings came from. letters from the giver should be original. ( has to be legally obtained--and not a promise of help from someone else )

in my case--my savings are from the sale of my house--so i will be including a sale completion statement from my solicitor--with a bank statement showing the proceeds paid in.

Heres the document that tells you about which Category you should apply through.

https://www.gov.uk/government/uploa...pendix_FM_Annex_1_7_Financial_Requirement.pdf

Don't forget to pay the new NHS surcharge before you submit the visa too.

It means how long has the sponsor been paid the salary (quoted in the application) for?

Yes i get paid holidays, but not sick days.

Sorry! I'm not sure what you mean..I'm the sponsor, and i am in non salaried employment. I get paid an hourly rate, and weekly payslips. The hourly rate was £7.81 for the first 3 months payslips of the application and £8.01 for the last 3 months payslips of the application. How should it be worded in an employers letter. I've tried to draft a letter for my employers, just so it covers everything that is required. They will type it up on company-headed paper and word it differently i expect, but i have seen people denied for missing things in the employment letter, so want it to cover everything. My draft is as follows:

"For the benefit of the Entry Clearance Officer

This is to confirm that Mr xxxxxxxxxx is currently employed in agency work as a temporary worker, with ourselves, xxxxxxxxxxx Ltd, and has been since 6th January 2014. He is in non salaried employment, and is paid at an hourly rate. His hourly rate is currently £8.01 per hour from January 2015, up from £7.81 per hour for 2014. This makes up his basic pay, and with additional overtime and bonuses, his total gross salary for the last financial year was £22668.10.

His current contract has been extended until 31st December 2015, after which it will be reviewed again.

Should you require any further information please feel free to contact this office on: [Employer Phone No].

Yours faithfully,

For and on behalf of [Company Name]

[Person Name e.g. HR/Account Mgr"

Do you think that covers everything?

(iii) the period over which they have been or were paid the level of salary relied upon in the application

is answered in you employers letter in the following statements:-

His hourly rate is currently £8.01 per hour from January 2015, up from £7.81 per hour for 2014. This makes up his basic pay, and with additional overtime and bonuses, his total gross salary for the last financial year was £22668.10.

The letter is very similar to mine (in format) which I submitted a few weeks ago for a successful FLR visa. It covers the requirement stated.

I thought i would come under non-salaried employment as i am paid hourly and my wage is variable. Part of Appendix FM 1.7 states:
"5.1.4.
To calculate this annualized 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."

The way i'm reading it, even though i am paid weekly, it seems to me the same rule would apply. So can i apply under catagory A, with a combination of non salaried employment, and cash savings?

Whether you should apply through Cat B or Cat D, it doesnt seem to make it clear. The table on page 17 isnt clear. Its almost as if it should be both B and D in your case.

But it also implies that you can apply through Cat B with the benefit of the cash savings "top up".

So it looks like Cat B unless the form allows you to input both B and D.

What do other chaps think? PalawanIOW's income appears to be both non salaried and variable.

I typed mine up and printed it on company headed paper. And simply presented it to my managing director and said "sign here" and he did.

It seems to me i qualify for either, if I've interpreted it correctly..so the question is which is preferable if both are possible.

Appendix FM Annex 1.7 states:

Category A 5.1.3.
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.
Category A 5.1.4.
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 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.

So it seems i fall under Cat A right? As i am payed weekly, i have added my last 26 payslips together, divided by 6, and multiplied by 12, which gives me a total gross of £22494, which means i am just £94 over the required amount. The minimum i need to sponsor my wife and stepson is £22400. It's way to close for comfort! My 12 monthly gross is also over the required amount at £22668, which i think means i qualify under category b as well, so I'm confused as which to apply under.

Let's say i apply under category A, can i also declare my cash savings i hold, even though i am over the required amount, just in case the entry clearance officer should miscalculate (or myself)? I am so close to the threshold its worrying, and it would be nice to have it as a cushion in case of a miscalculation.
Thanks everyone, lastly at what point, or on what form do you declare which category you will apply under, i haven't seen it been asked anywhere yet.

Thank you for taking the time to read this

Have you taken your lowest payslip and multiplied by 26, like Timmers suggested in an earlier post? Like he, I seem to recall that was how it works for people under a similar circumstance.

The reason I suggested variable income was because your earnings have not been fixed.

For example, my wages are fixed and do not change from one month to the next. Yours vary, from what you say, with overtime and bonuses?

Let's say i apply under category A, can i also declare my cash savings i hold,

there is a savings threshold of £16,000 --so any savings of less than that will be ignored. but if you can show savings over that amount--held for 6 months----then by all means you can combine it with your wage calculation. belt and braces. i will be using my state pension ( well under the required amount ) together with savings.

If i take my lowest payslip and multiply by 26, then my equivalent gross annual salary works out at £13000, way short of the £22400 i need. I had to take a sick day last month, and i don't get paid sickness, but I haven't read anywhere that they do that, and it clearly states on the Appendix FM:
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 by6) multiplied by 12 = Income from non salaried employment that can be counted towards the financial requirement

Whereas in salaried employment, its states 'the figure used towards the requirement will be the lowest level of annual salary received during the 6 month period.

That's where i think the confusion may be..as i fall under non salaried employment, as i am payed hourly
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.

I'm interested to know where this information may have come from, if someone could confirm this has happened to them. Anyway to be safe i shall have to declare all of my cash savings, which should cover any shortfall if they do decide to multiply by 26.

They don't make it easy for us do they!

No they do not make it easy. Getting ones head around that stuff in that Appendix FM Annex 1.7 is not easy.,

However, what you say about cash savings is what I was trying to get at. The more you have the better. After all, its not as if you have to spend it / give it to them, its just ensure you have enough to cover the worst case scenario.

That bit about taking the lowest payslip may not apply anymore. These rules have been around for 2 years now and they have evolved a little. So whilst that may have been applicable in the past, it might not be anymore.

At what stage do you declare what category you apply with, whether it's A, B or D. Is it on one of the forms me or my wife fills out? Or is it automatically done when you apply, they work it out for you?