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Working for a family member does it have an effect on decision

Working for a family member does it have an effect on decision

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Old Feb 11th 2018, 8:32 am
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Default Working for a family member does it have an effect on decision

decision My sister owns a company and this morning she called me asking me if I wanted a job its good pay and meets the income threshold. It is a private limited company its all registered and pays taxes.

If I was to work for her would this affect my application in any way?
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Old Feb 11th 2018, 11:21 am
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Default Re: Working for a family member does it have an effect on decision

It's a legitimate job offer then no but since you're been working since October for the same employer and meeting the threshold then why change employer before you've lodged your application?
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Old Feb 11th 2018, 11:35 am
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by BritInParis
It's a legitimate job offer then no but since you're been working since October for the same employer and meeting the threshold then why change employer before you've lodged your application?
Yeah, I am going to join after I send the application. If the position is still available.

Thank you BritInParis
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Old Feb 11th 2018, 3:09 pm
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Default Re: Working for a family member does it have an effect on decision

Hi everyone,

I have a very similar question. My husband is going to sponsor me coming from Ukraine to join him in Scotland and will use his PhD stipend as main source of income. Since this is untaxable income we can use it under category where only 15,800 income per annum is required. His stipend is 14,400 net and he is going to add his employment 2,500 per annum (net), which makes total above the threshold. The thing is he's employed at family owned company and the managing director is his dad with the same last name (which is going to be on the employer's letter). The salary is paid regularly and we have the payslips and bank statements to prove that. Just wondering if it is not an issue and whether should we explain it specifically in the application.

The second question is about payslips. The first six months he was getting his salary paid every three months so we have only two payslips till 29 December. As for now he's getting his salary every month. Can this be an issue?

Thanks in advance
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Old Feb 11th 2018, 6:15 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by RachelCohen
Hi everyone,

I have a very similar question. My husband is going to sponsor me coming from Ukraine to join him in Scotland and will use his PhD stipend as main source of income. Since this is untaxable income we can use it under category where only 15,800 income per annum is required. His stipend is 14,400 net and he is going to add his employment 2,500 per annum (net), which makes total above the threshold. The thing is he's employed at family owned company and the managing director is his dad with the same last name (which is going to be on the employer's letter). The salary is paid regularly and we have the payslips and bank statements to prove that. Just wondering if it is not an issue and whether should we explain it specifically in the application.

The second question is about payslips. The first six months he was getting his salary paid every three months so we have only two payslips till 29 December. As for now he's getting his salary every month. Can this be an issue?

Thanks in advance
As britinparis said above as long it's legitimate it's fine. Obviously, payslips and paye reference must be on the payslips. And the company must be registered with companies house. And also get it stamped by the HR team or the director. All the best
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Old Feb 11th 2018, 6:28 pm
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Default Re: Working for a family member does it have an effect on decision

Thanks
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Old Feb 11th 2018, 10:08 pm
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Default Re: Working for a family member does it have an effect on decision

To the OP unless I have misunderstood something you wouldn't meet the requirements unless there are more than 5 other shareholders. It appears to be a sole or limited family partnership. This is what you need to know :


5.5.13. Where a person is either a director or employee of a limited company in the UK, or both and receives a salary from that company, that salaried income can be counted under Category A or Category B, provided that the limited company is not of a type specified in paragraph 9(a) of Appendix FM-SE (i.e. it is not in sole or limited family ownership). Evidence of the type of company must be provided, which can include the latest Annual Return filed at Companies House. A fee paid to a person appointed as a non-executive director of a company (and this is not a limited company in the UK of the type specified in paragraph 9(a) of Appendix FM-SE) instead of a salary may be treated and evidenced as though it were a salary paid for employment in that capacity

5.5.14. Paragraph 9(a) of Appendix FM-SE states that the specified type of limited company is one in which:
(i) the person is either a director or employee of the company, or both, or of another company within the same group; and
(ii) shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and
(iii) any remaining shares are held (directly or indirectly) by fewer than five other persons.

5.5.15. Where a person receives a salary from employment as a director or employee (or both) of a limited company in the UK of the type specified in paragraph 9(a), that salaried income can only be counted under Category F or Category G, as appropriate. See section 9 of this guidance.

Last edited by Invisible; Feb 11th 2018 at 10:16 pm. Reason: misunderstood
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Old Feb 11th 2018, 10:49 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by Invisible
To the OP unless I have misunderstood something you wouldn't meet the requirements unless there are more than 5 other shareholders. It appears to be a sole or limited family partnership. This is what you need to know :


5.5.13. Where a person is either a director or employee of a limited company in the UK, or both and receives a salary from that company, that salaried income can be counted under Category A or Category B, provided that the limited company is not of a type specified in paragraph 9(a) of Appendix FM-SE (i.e. it is not in sole or limited family ownership). Evidence of the type of company must be provided, which can include the latest Annual Return filed at Companies House. A fee paid to a person appointed as a non-executive director of a company (and this is not a limited company in the UK of the type specified in paragraph 9(a) of Appendix FM-SE) instead of a salary may be treated and evidenced as though it were a salary paid for employment in that capacity

5.5.14. Paragraph 9(a) of Appendix FM-SE states that the specified type of limited company is one in which:
(i) the person is either a director or employee of the company, or both, or of another company within the same group; and
(ii) shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and
(iii) any remaining shares are held (directly or indirectly) by fewer than five other persons.

5.5.15. Where a person receives a salary from employment as a director or employee (or both) of a limited company in the UK of the type specified in paragraph 9(a), that salaried income can only be counted under Category F or Category G, as appropriate. See section 9 of this guidance.
So unless there are 5 other shareholders even though you get an income from it your visa will be rejected? This doesn't make sense what if the family does not want any other shareholders. And what if it's a private limited company?
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Old Feb 11th 2018, 11:03 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by Bobjon
So unless there are 5 other shareholders even though you get an income from it your visa will be rejected? This doesn't make sense what if the family does not want any other shareholders. And what if it's a private limited company?
I'm just quoting the part of the Home Office visa application guidelines that I believe refer to your original question.
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Old Feb 11th 2018, 11:06 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by Bobjon
So unless there are 5 other shareholders even though you get an income from it your visa will be rejected? This doesn't make sense what if the family does not want any other shareholders. And what if it's a private limited company?
100% of shares can be held by one person in a limited company.
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Old Feb 11th 2018, 11:17 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by SanDiegogirl
100% of shares can be held by one person in a limited company.
So the company can be owned 100% by a direct family member and they can still apply under Cat A?

What am I missing from the guidelines?

5.5.14. Paragraph 9(a) of Appendix FM-SE states that the specified type of limited company is one in which:
(i) the person is either a director or employee of the company, or both, or of another company within the same group; and
(ii) shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and
(iii) any remaining shares are held (directly or indirectly) by fewer than five other persons.
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Old Feb 11th 2018, 11:18 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by SanDiegogirl
100% of shares can be held by one person in a limited company.
Yes true but what the person above is saying. Is that if you work for your family unless there are 5 other shareholders in the company and you are one of there employees and earning the threshold amount unless your director can get 5 shareholders the visa for that person applying will be rejected.
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Old Feb 11th 2018, 11:23 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by Bobjon
Yes true but what the person above is saying. Is that if you work for your family unless there are 5 other shareholders in the company and you are one of there employees and earning the threshold amount unless your director can get 5 shareholders the visa for that person applying will be rejected.
It doesn't really matter though, because the family member who owns the company is your sister and you're not going to take the job before your wife applies for her visa, and you have a full time job already, so you won't have any worries.
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Old Feb 11th 2018, 11:25 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by spouse of scouse
It doesn't really matter though, because the family member who owns the company is your sister and you're not going to take the job before your wife applies for her visa, and you have a full time job already, so you won't have any worries.
That's true but other people may be in that situation and want to know what to do. Don't you think its best to try and conclude the best option for that person in this situation.
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Old Feb 11th 2018, 11:29 pm
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Default Re: Working for a family member does it have an effect on decision

Originally Posted by Bobjon
That's true but other people may be in that situation and want to know what to do. Don't you think its best to try and conclude the best option for that person in this situation.
Yes, but if anyone else needs to know I'm sure they'll start their own thread, which would be preferable as everyone's situation is unique.
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