Application, newly Self-Employed (lack of evidence?)

[mr_simpson]

Dear all,

I have a concern regarding the application for EEA1/EEA2 via the self-employment route. I would appreciate if you could evaluate my case and give me your ideas and opinions:

I am just starting out as a self-employed video editor and would like to apply for EEA1 alongside an EEA2-application with my wife (non-EEA). Now the fact that I have only just started my self-employment of course means that my supporting documents are limited.

I do NOT have:
- any records of paid taxes
- NI contributions
- Any business bank account with corresponding business bank statements

Now I am wondering what information/documentation I CAN provide without having to wait for the end of the tax-year and my first self-assessment. We need to apply very soon as my wife's post-study visa expires in early January (she is working full-time).

Since, as of now, I couldn't find a full-time employment (which I understand would be the easiest and most straight forward way), we are thinking of the following:

I will provide:
- invoices
- 6 months bank statements (personal current account, not business) proving payments (although rather irregular since, again, I am just starting out). (I have a separate e-savings account without paper statements)
- testimonial/reference letters: I will get at least two letters from companies I have worked for, formally stating that I have worked with/for them, and that they will work with me again (i.e. provide me with future work)
- a cover letter explaining my situation (keypoints "just starting out", "not much evidence" etc. …)
- mariage certificate
- MA certificates from both me and my wife

1) What do you think of this application and the supporting documents? Do you think I can provide any additional documents or information to support my case?
2) What additional documents do I HAVE TO provide (that I may or may not have in my situation)?
3) Do I need to or should I buy any private insurance (CSI)? Alternatively, is it possible to apply for voluntary NI contributions and provide evidence short-notice?
4) I have registered for the Self Assessment at HMRC, but am still waiting for the Unique Taxpayer Reference. Do I need to provide it?
5) I would write down "MY NAME, Post-Production Editor" in the field "Name of business", with my home address as the "Business address", does that work?
6) Do I need to provide a bank statement of my e-savings account, or should I transfer my savings to the current account?
7) Would it be helpful to open a joint account with my wife and transfer savings into it?

I would greatly appreciate any sort of suggestions on my case, as I understand it is a difficult situation (but not one that is impossible to prove, at least it shouldn't be?). We are both quite concerned about my lack of evidence, but really hope it is possible to hand in a genuine and comprehensive application with a reasonable chance of success.

Thank you!

[sheraz7]

I do NOT have:
- any records of paid taxes
- NI contributions
- Any business bank account with corresponding business bank statements

Above missing evidences are very vital ones for demonstrating economic activity as being self employed. Moreover, personal current/savings statements can represent self sufficiency but for self employment usually business/trading accounts need. Following thread can familiarize you regarding the documents need for self employment.
http://immigrationboards.com/viewtopic.php?t=105916

[mr_simpson]

Above missing evidences are very vital ones for demonstrating economic activity as being self employed. Moreover, personal current/savings statements can represent self sufficiency but for self employment usually business/trading accounts need. Following thread can familiarize you regarding the documents need for self employment.
http://immigrationboards.com/viewtopic.php?t=105916

Thanks a lot for your reply sheraz7. Thanks also for the link, I have been following that thread as well.
I was afraid that it is insufficient material and that cover and reference letters do not really help in my case.
I suppose the best way is to find a permanent job and go via the employment-route, although I'm not sure if this all will happen in time.

Thanks again, and if anyone has any other feedback about my situation, please let me know.

[askmeplz82]

Hi don't worry about BUSINESS BANK account. you don't need one. ~How many Self employed use business bank account .

But yes you can show NI contribution . You can pay every month.

Not everyone pays tax. People on low income don't pay any tax


but yes Home office like to see invoice / receipt / letters from the client just to prove genuine activities

but i believe easiest thing to do now is buy insurance and be self sufficient . So if one is not accepted other will.

[John]

mr_simpson, have you registered the existence of the business with HMRC? If not you need to do that without delay.

Also, disagreeing with askmeplz82, do open a Business Bank Account. There are many offers from banks and such an account will probably not cost you a penny, for say 18 or 24 months, but the account will enable you to segregate your business transactions from your personal ones.

Roughly how many hours per week does your self-employment work take up?

[ninkas]

Also, disagreeing with askmeplz82, do open a Business Bank Account.

I think askmeplz82 meant that if you sole trader you are not oblige to have BBA neither hire accountant.

@mr simpson as I understand you registered yourself with HMRC 6 months ago,as you sending 6 months bank statement,so you should have your UTR by now.If yes,just create your account with HMRC and set up your DD with them - pay every month so you will have the evidence of paying NIC shortly.If you haven't registered yet or do not have UTR contact HMRC as soon as possible.I would attach some proof of advertising and good cover letter as well.I applied for my husband RC recently-started trading on 15.11.2012 applicaton sent 0n 30.08.2013 and RC received 2 moths later.You can see my list of documents in the thread - link above.I used my home address as my business address as I work from home.Just make sure you read your tennancy agreement as some landlords do not allow to register any business activities.
I think there is no need to find a job.If you have invoices,can show the income-bank statement,some proof of advertising,letter from HMRC confirming registration and proof of paying NIC you will be o.k.

[mr_simpson]

Thank you all for you replies and kind suggestions!

@askmeplz82:
Although I do have some savings, I don't think that I could apply for self-sufficiency. Thanks for the notes on NIC, and this "prove of genuine activities" is exactly what I would try and convey ...

@John:
I have registered for self assessment with HMRC a few weeks ago, as a freelance/self-employed video editor (that is my "business").
I would say that I work a good 30 to 40-hour week on average, but it doesn't necessarily show on the invoices and payments: in this industry the pay is usually on a daily or on a project basis, and the salary varies a lot.

@ninkas:
Unfortunately I have registered just recently (in the end I cannot do the self assessment before early 2013 if I'm not mistaken)
Thanks, I will create the direct debit for NI!
I couldn't show any proof of advertising (apart from a wordpress-website potentially ...?!) and I am not sure if there is enough time to set up a business account (and have the first few payments coming in through that) before our application :/

Again, thanks a lot for all your helpful feedback, and sorry that I may be quite bit naive at some points ...!

[ninkas]

@ninkas:
Unfortunately I have registered just recently (in the end I cannot do the self assessment before early 2013 if I'm not mistaken)
Thanks, I will create the direct debit for NI!
I couldn't show any proof of advertising (apart from a wordpress-website potentially ...?!) and I am not sure if there is enough time to set up a business account (and have the first few payments coming in through that) before our application :/
Advertising is very easy.Visit yell.com and yell.co.uk.Create an advert for free and mention this in your cover letter .It would be good if you could create your own website - to buy own domain doesn't cost that much.Surely you have business cards - send them as well.And chase your UTR !!! call the HMRC help desk and ask them for the letter.
If you registered recently what's the point of sending 6 moths bank statement? I would wait with the application for 3 months,will gather more invoices,pay NIC via DD and then send it to UKBA.You do NOT HAVE TO RUSH.If you exercising your treaty rights your wife has got a right to live and work here.RC is just a confirmation of those rights.

[John]

I have registered just recently (in the end I cannot do the self assessment before early 2013 if I'm not mistaken)

Assuming your business started in the current tax year, which started on 06.04.13, and you were not previously required to file Self Assessment returns, the first such return will be for the year to 05.04.14, with a filing deadline of 31.01.15.

I would say that I work a good 30 to 40-hour week on average, but it doesn't necessarily show on the invoices and payments: in this industry the pay is usually on a daily or on a project basis

That is good, it is clearly not a nominal business.

[mr_simpson]

Thanks John, thanks ninkas!

I am not aware that my wife has rights to work and live in UK if I'm exercising treaty rights?! Surely we'd still have to apply before her post study visa expires?
Thanks ninkas for the tip with advertising and registering a domain, definitely reasonable actions.

Thanks John for the deadlines, I couldn't find them earlier.

Say I wanted to try and go via the employment route by getting a contracted job real quick (I am currently looking): Would a contract with a three-months-trial period be sufficient? Clearly it should be, and I would only potentially have to hand in an ongoing contract later ... right?
Sorry, I should probably be able to find information and experience reports on that somewhere here, will edit this if I do.

Thanks everyone.

[John]

I am not aware that my wife has rights to work and live in UK if I'm exercising treaty rights?! Surely we'd still have to apply before her post study visa expires?

I fear that you totally misunderstand the situation, and the reality is, for you, much better than you might think.

But let's first cover an important point. You mention your wife. Please confirm that the two of you are legally married, and not "just" in a religious marriage, which is not also a legal marriage.

Assuming the two of you are legally married, your wife is your "family member" as defined in the EU regulations. That means she possesses the same rights as you, assuming you are exercising Treaty Rights in the UK.

So if you are employed or self-employed, for example, she also has Treaty Rights.

However, how does she prove she has those Treaty Rights? By making an application on form EEA2 for a Residence Card. It is simply that the Residence Card confirms she has Treaty Rights. It is important to appreciate that the Residence Card does not actually give her new rights, she already has those Rights, it merely confirms that she has those rights.

However I totally recognise that for a "family member" having that confirmation is incredibly useful, so yes she should make the EEA2 application.

[mr_simpson]

It is important to appreciate that the Residence Card does not actually give her new rights, she already has those Rights, it merely confirms that she has those rights.

Thanks a lot for this clarification, John! You are enlightening me here on an issue that was indeed quite unclear for me.

I was always confused about lines like this in the guidance notes:

"There is no legal requirement for non-EEA or non-Swiss national direct family members of EEA or Swiss nationals who are exercising Treaty rights in the UK to obtain a residence card to confirm their right of residence in the UK. Any such non-EEA or non-Swiss national applying for a residence card does so on an entirely voluntary basis."

Legal stuff that I am only slowly beginning to grasp, so thanks a lot for the intelligible explanation. Apologies again for my naivity, I appreciate the patience.
And yes, me and my wife are legally married.

However, as you say, even if the situation is better considering this, I will still proceed with preparing for an application ASAP/this year. She is and will continue working full-time and I want to try and make sure that there are no legal issues at any point. In the end, whether or not I am "exercising treaty rights" is for UKBA to decide ...

I am trying to find a contracted job to prove this now, as the self-employment route seems to be too insecure in my case, unfortunately (evaluating this was why I opened this thread in the first place).

Thanks again.

[John]

mr_simpson, when did your self-employment start? Just how recently? And have you started to actually receive money from customers?

I am trying to find a contracted job to prove this now

A contracting job? Would that be via a limited company that you happen to own, and of which you happen to be a Director?

Whereas the self-employment you have been referring to, that is you as a "sole trader"?

[mr_simpson]

mr_simpson, when did your self-employment start? Just how recently? And have you started to actually receive money from customers?

I started in May this year, and yes, I have sent out invoices and received some money, albeit irregular and as of now still well under the Personal Allowance of £9,440 (if I'm not mistaken?).

A contracting job? Would that be via a limited company that you happen to own, and of which you happen to be a Director?

No, I am hoping to find a job in an ideally established company. A complete u-turn, as my self-employment situation seems indeed insufficient. I still couldn't find any information about some contract details, so if someone has had experience with, or has information on:

a) a contract with a three-months-trial period (sufficient?)

b) a part-time job (I've read that "even a part time employment also makes an EEA national eligible to apply for one." I guess I can rely on that?)

c) a contract (or agreement) that engages someone as a self-employed person (quite common in some industries, I reckon, as it's easier for the company - it's probably a given that in that case the only route is the self-employment route?)

... please let me know.

Whereas the self-employment you have been referring to, that is you as a "sole trader"?

Yes, if I'm not mistaken, that would be the legal term for what I do. Sorry, I should have probably clarified earlier. As I said, I offer my services as a video editor.

Thanks John, thanks all.