Definition of cash savings

[scoobydoolondon]

Hi there

In about 8 months time, I will need to submit an FLR(M) application for my wife and I want to go down the Cash Savings route for ease and simplicity. Hence the need to get my house in order in preparation for the 6 months of proof.

Currently we have around £75k in cash savings, in a combination of individual and joints names.

1) As I understand it, we would need to show £62.5k in savings, is that still the case?
2) Presumably its ok to aggregate the individual and joint accounts to achieve the £62.5k threshold?
3) I read somewhere the first £16k of savings are ignored - is that the case? If so, I guess it means I would need to show £16k + £62.5k of savings (£78.5k) - could someone pls clarify.
4) I know I have to show proof of 6 months savings. Assuming the cash was in a single account, is it the case that the savings cannot fall below £62.5k for the entire 6 months period?

5) We also have around £80k of savings in ISA and share trading accounts - can this be used as cash savings?
6) Sometimes its cash and some of the time we hold securities, how does it work if we're holding shares? Is it a case of taking a valuation at a point in time?

The reason for going down the Cash Savings route is I believe its easier to not make mistakes. I run a Ltd Company and a combination of salary and dividends amounts to around £40k.

Should I apply under Cash Savings and also include my personal income and Company documentation, or is it enough to just show Cash Savings?

look forward to the replies.

many thanks

[CR001]

1. Yes, £62,500

2. Yes, but for ease of reference, one account would probably be eaiser and less paperwork. HO could ask for proof of where the money came from, i.e. it cannot be a 'loan'.

3. Only relevant if relying on combination of income and savings.

4. 6 months statements for savings for each account where savings are held. Correct yes, funds should not fall below the £62,500 level during the 6 month period.

5. To rely on savings, it must be available immediately, ie. not fixed deposit or shares etc.

6. Read the financial guidance notes, I think it references scenarios. But to be honest, if you have the level of CASH savings, just use that rather than over complicate with securities/shares trading account etc.

[scoobydoolondon]

Thanks for the prompt response and advice, that's very useful indeed.

I won't overcomplicate it, will stick to Cash Savings only and ensure the minimum £62.5k is not touched for 6 months prior to application.

My wife's current 2.5 year visa runs out on 1st March 2017, so we would need to book a premium appointment in Feb (within 28 days of 1st March).

Am I right in thinking the £62.5k threshold will not change between now and 1st March? To be sure, I'll park £75k in savings.

One last point on the application - if I'm showing Cash Savings only, as a Director of a Ltd Company, do I still need to submit company information (Corporation tax paid, Accounts filed, Accountants letter) and personal financial statements (P60, annual return, dividend vouchers), etc

thanks again

[CR001]

Am I right in thinking the £62.5k threshold will not change between now and 1st March?

Cannot guess if there will be changes as don't know. Keep an eye on HO website for updates if there are any.

One last point on the application - if I'm showing Cash Savings only, as a Director of a Ltd Company, do I still need to submit company information (Corporation tax paid, Accounts filed, Accountants letter) and personal financial statements (P60, annual return, dividend vouchers), etc

No, not if you are relying solely on cash savings. You could take company docs with you but should not be required if you are not using income to meet the requirement.