Help understanding Appendix FM 1.7
Sep 11th 2019, 11:54 pm
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Help understanding Appendix FM 1.7
Hi, can anyone explain these two sections a little more clearly?
9.3.6. Income under Category F or Category G can be combined with income from salaried and non-salaried employment, non-employment income and pension income in order to meet the financial requirement. However, unlike with other Categories, these sources of income must fall within the relevant financial year(s) in order to be included. Under Category F or Category G, all sources of income must fall within the financial year(s) relied on and must still be a source of income at the time of application. For example, to count income from property rental the income must have been received during the relevant financial year(s) and the property must still be owned by the relevant person at the date of application.
9.3.8. Self-employed income can be cash-in-hand if the correct tax is paid. In line with paragraph 3.1.5 of this guidance, it would generally be expected that the person’s business or personal bank statements would fully reflect all gross (pre-tax) cash income. Flexibility may only be applied where the decision-maker is satisfied that the cash income relied upon is fully evidenced by the relevant tax return(s) and the accounts information.
My husband has had 2 salaried positions in the last year (the current for less than 6 months) and a contract position, as well as being self-employed. We are £400 short of being able to apply at the end of this month under Cat B without including any of his self-employed income because we thought we couldn't.
Can we include his self-employed income, and if so, can we only include income up until April of this year? How does that work? Is there a way (under the second section quoted) to include self-employed income from the past couple of months?
Thanks!
9.3.6. Income under Category F or Category G can be combined with income from salaried and non-salaried employment, non-employment income and pension income in order to meet the financial requirement. However, unlike with other Categories, these sources of income must fall within the relevant financial year(s) in order to be included. Under Category F or Category G, all sources of income must fall within the financial year(s) relied on and must still be a source of income at the time of application. For example, to count income from property rental the income must have been received during the relevant financial year(s) and the property must still be owned by the relevant person at the date of application.
9.3.8. Self-employed income can be cash-in-hand if the correct tax is paid. In line with paragraph 3.1.5 of this guidance, it would generally be expected that the person’s business or personal bank statements would fully reflect all gross (pre-tax) cash income. Flexibility may only be applied where the decision-maker is satisfied that the cash income relied upon is fully evidenced by the relevant tax return(s) and the accounts information.
My husband has had 2 salaried positions in the last year (the current for less than 6 months) and a contract position, as well as being self-employed. We are £400 short of being able to apply at the end of this month under Cat B without including any of his self-employed income because we thought we couldn't.
Can we include his self-employed income, and if so, can we only include income up until April of this year? How does that work? Is there a way (under the second section quoted) to include self-employed income from the past couple of months?
Thanks!
