Category F -Not a FULL FINANCIAL YEAR

[Guy121]

Hi there

I started my business in May this year under a limited company, and spouse visa extension for my wife and a child is due to be applied in June 2020.

I changed accounting reference date of my company to 31st Mar, to be more aligned with tax year.
so it means, first accounting period of my company will end on 31 Mar 2020, when the company will be less than 1 year old. Category F mentions FULL ACCOUNTING YEAR, how would that apply in my situation?

Secondly, for the earnings requirements part, I am director of my company with 51% shareholding and my wife is a shareholder of 49% (but not director), now from this month, November, we both have started to draw some salary and some dividends to be more tax efficient and to also meet financial requirement of visa extension. Would this approach be ok with Home Office when time comes for visa extension in June next year ?


Thanks for help

[geoeng]

I changed accounting reference date of my company to 31st Mar, to be more aligned with tax year.
so it means, first accounting period of my company will end on 31 Mar 2020, when the company will be less than 1 year old. Category F mentions FULL ACCOUNTING YEAR, how would that apply in my situation?

"The financial year(s) to which paragraph 9 refers is the period of the last full financial year(s) to which the required Company Tax Return(s) CT600 relates." and "For those employed as a director or other employee (or both) of a specified limited company in the UK, the relevant financial year(s) will be that covered by the Company Tax Return CT600 and corresponds to the 12-month accounting year of the company" As far as I can tell, there is no requirement for the company to be at least one year old, only that you can provide all of the specified evidence for the full financial year. If you can meet the financial requirement based on the income received in the financial year being relied upon and can provide all of the necessary accounting documents, it seems the visa requirements would be met. It seems what it would come down to is whether or not the accounting documents for the year ended 31 March 2020 will be for a full 12 month accounting year (and just list no income for months prior to starting your business) or be for a partial year. That's just my interpretation though, definitely open to other opinions as I haven't actually used this category myself.

Secondly, for the earnings requirements part, I am director of my company with 51% shareholding and my wife is a shareholder of 49% (but not director), now from this month, November, we both have started to draw some salary and some dividends to be more tax efficient and to also meet financial requirement of visa extension. Would this approach be ok with Home Office when time comes for visa extension in June next year ?

Should be. Just makes it easier that it's the same specified limited company for both of you as the required documentation will be the same for each of you (pages 67-69 of Appendix FM 1.7, which it seems like you have already found).

[Guy121]

Thanks geoeng, really appreciated