I am very sorry If I'm asking about Rental Income again .My husband still confused if do we apply category F . We just both scared if our application denied because of MOrtgage Statement. He earned rental income of £35,051 ( before any mortgages and maintenance etc) . He can't find anywhere where it says to disclose what he pay out in mortgages etc for same properties,. Answers from members , and from other Forum: 1. They don't ask for disclosures just incomes 2. The Financial requirement is based on your Gross income before any deductions. Having a Mortgage will not make any difference to the Income you submit. Nothing to worry about. 3. They will count if how much left after you paid your husbands mortgage . 4. Having a mortgage has nothing to do with your visa. 5. They will base the net income after paying mortgage. Please, Can you Help us enlighten our mind about this matter ? YEs, how many times I posted about this matter but still confusing. To those successful members who are using this category , we need your HELP specially if we have the same situation . Thanks a lot..
I think you have been told this a few times, mortgages (or what ever you owe) is not relevant to the application, it is the money that you have coming in (income) that the UKVI is interested in. If you are using rental income (income from non employment sources) only to meet the financial requirement then only proof of that income needs to be submitted in order to satisfy the UKVI that you meet the financial requirement. The accountant should be able to help you with that.
Thanks Timers for your reply. It helps me to understand. As I read from other forums its quite confusing . Anyway, Thank you and Have a good day .
When you declare rental earnings on a tax return, interest on the mortgage is deducted from the gross earnings but actual mortgage payments are not. https://www.gov.uk/guidance/income-...our-rental-income#work-out-your-rental-income So, as an example, if you rent s property out for 1000, and your mortgage is 500 repayment and 200 interest, you deduct the 200. That would make earnings of 800. There are other items that can also be deducted, such as housing insurance, shown on that page,
Hi @Maharg . This is the best answer I've got so far about rental property. Thank you again .. God bless
No wonder people are confused. What have tax returns to do with it, and deductions thereon ? It is quite simple... as Tim has already stated. The Entry clearance officer is simply interested in GROSS income, with proof. Of course they don't have the time to go to the far end of a fart with it. They are neither tax inspectors nor accountants. Keep it simple, and provide proper proof to confirm that the information you have provided is correct .
They want net earnings not gross, as this is the earnings you pay tax on. This is certainly the case with self employment so I would imagine it would be the same with rental income.
I think we are both half right and half wrong.I was getting my terms confused, which is why I use an accountant. It is gross they require, but gross income is what you pay tax on, so it is the turnover you receive minus expenses. http://smallbusiness.chron.com/calculate-gross-income-selfemployed-18854.html So it is the money you pay your tax on, and the amount declared on the tax return. It's not just the money you receive. Four visa applications from us tells me this is correct. You need to provide the tax return and proof of tax payments. This is for self employment, rather than rental income, but I would expect the same principle.
So in other words you still don't know the answer to the OP's question . Sorry, but I've only had three successful visa applications, 35 years self-employment, several years civil service (employment benefit section), and a brother who used to head up visa section (worldwide). We could do with our old visa expert back, but he appears to have been driven off the forum.
I never claimed I did know with regards to rental income. I was stating the self employed situation and providing details from my own situation and also looking things up to try and help. I don't understand why you always have to be so confrontational. It doesn't help anyone.
You were simply muddying the waters. Also not helpful. 'Confrontational' ? That's pretty rich, after having read the stuff you've posted on the political topics .
I don't believe I muddied the waters. I was giving the self employment position and making it clear that I was doing that. So when you did your visa applications, which earnings did you put and what documents did you provide? I appreciate that rental income is not self employment but I would say it is best to assume the principle is the same with no exact details proving otherwise? I certainly used in amount declared on the tax return (which was the turnover minus the expenses) as my earnings.
I will have to extricate myself from this fascinating exchange... as I have more pressing matters to attend to here in the Philippines. Another time.
Everything I have read says 18,600 BEFORE tax is deducted...So I guess that means Gross income minus expenses which = profit before taxes. Also..From what I have read,I assume further that all income must be accounted for in the same financial year..
1 That's correct (although there does seem a degree of ambiguity over the term gross). But, as you say, it is total turnover from invoices (or, in this case, rent) minus expenses, which goes as your earnings. This is the amount entered on the tax return and then tax is based on that figure. So, based on the link I posted, any interest on a mortgage counts as an expense on rental income, but actual mortgage repayment does not.
You should find and download appendix FM 1.7 Financial Requirement - I've uploaded my copy - hopefully you can view it. Go to page 40 and you'll find: 6.2. Property rental – further guidance 6.2.1. Appendix FM-SE specifies further requirements for property rental income: 20(c) Any rental income from property, in the UK or overseas, must be from a property that is: (i) owned by the person; (ii) not their main residence and will not be so if the application is granted, except in the circumstances specified in paragraph 20(e); and (iii) if ownership of the property is shared with a third party, only income received from their share of the property can be counted. cc) The amount of rental income from property received before any management fee was deducted may be counted. You simply include the gross income before the agent takes their management fee - if you don't use an agent there probably won't be a management fee.
