Self-employment savings for financial requirement

Old Oct 27th 2018, 6:07 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Self-employment savings for financial requirement

Hello,
I have a question about using savings from self-employment to meet the financial requirement. I
was reading the HO doc about the requirements and for those who have an employer, they ask for payslips as evidence of income, but what evidence would work
for self-employed? Just bank statements that show deposits? Tax returns?
thank you!
pendledreams5 is offline  
Old Oct 27th 2018, 6:22 pm
  #2  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Re: Self-employment savings for financial requirement

To clarify, my British husband owns a business here in the US.
pendledreams5 is offline  
Old Oct 27th 2018, 6:27 pm
  #3  
 
BritInParis's Avatar
 
Joined: Feb 2012
Location: Not in Paris
Posts: 17,516
BritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond repute
Default Re: Self-employment savings for financial requirement

Savings or income? Those are two very different options.
BritInParis is offline  
Old Oct 27th 2018, 6:45 pm
  #4  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Re: Self-employment savings for financial requirement

Originally Posted by BritInParis View Post
Savings or income? Those are two very different options.
we have savings (post-tax) that came from self-employment that we want to use for the requirement and he is still actively self-employed and receiving income. The more I read on this subject the more I get confused!
i also read that if he has been working in the US, that can count towards the requirement?
pendledreams5 is offline  
Old Oct 27th 2018, 6:46 pm
  #5  
 
BritInParis's Avatar
 
Joined: Feb 2012
Location: Not in Paris
Posts: 17,516
BritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond repute
Default Re: Self-employment savings for financial requirement

More than £62,500 (~$80,000) worth of savings?
BritInParis is offline  
Old Oct 27th 2018, 6:48 pm
  #6  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Re: Self-employment savings for financial requirement

Originally Posted by BritInParis View Post
More than £62,500 (~$80,000) worth of savings?
Yes,
thank you
pendledreams5 is offline  
Old Oct 27th 2018, 6:50 pm
  #7  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Re: Self-employment savings for financial requirement

And we are also trying to decide whether showing the savings in his business account or moving them to a personal savings account, for the required 6 months, would be better.
pendledreams5 is offline  
Old Oct 27th 2018, 7:06 pm
  #8  
 
BritInParis's Avatar
 
Joined: Feb 2012
Location: Not in Paris
Posts: 17,516
BritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond repute
Default Re: Self-employment savings for financial requirement

In that case you just need to park £62,500 in a personal bank account for six months. You just need to provide six months worth of bank statements.
BritInParis is offline  
Old Oct 27th 2018, 7:18 pm
  #9  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Re: Self-employment savings for financial requirement

Originally Posted by BritInParis View Post
In that case you just need to park £62,500 in a personal bank account for six months. You just need to provide six months worth of bank statements.
So just to clarify, he doesn’t need to submit supporting documents for self employment with the application?
Thank you so much for the information
pendledreams5 is offline  
Old Oct 27th 2018, 7:31 pm
  #10  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Re: Self-employment savings for financial requirement

And just one more thing (thank you for your patience!),
once we move the funds to a separate savings account, will they need bank statements from
the accounts where the funds came from? I read in section 7.4.15. that :
Example (a)
The applicant’s partner has an investment portfolio worth approximately £1m, although this value fluctuates. In order to meet the financial requirement, she liquidates part of her investment 2 months prior to the date of application and transfers £62,500 in cash to her personal savings account.
She is able to provide a portfolio report showing that the value of the liquidated assets was at least £62,500 7 months prior to the date of application. The cash savings meet the requirements of Appendix FM-SE at the date of application and, by combining the period the money was held as investments with the period the money has been held as cash savings, the funds have been owned by the applicant’s partner and
under their control for at least the 6 months prior to the date of application. So the financial requirement is met through Category D cash savings.
pendledreams5 is offline  
Old Oct 27th 2018, 8:27 pm
  #11  
Lost in BE Cyberspace
 
Joined: May 2010
Location: San Diego, California
Posts: 8,958
SanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond reputeSanDiegogirl has a reputation beyond repute
Default Re: Self-employment savings for financial requirement

Originally Posted by pendledreams5 View Post
And just one more thing (thank you for your patience!),
once we move the funds to a separate savings account, will they need bank statements from
the accounts where the funds came from? I read in section 7.4.15. that :
Example (a)
The applicant’s partner has an investment portfolio worth approximately £1m, although this value fluctuates. In order to meet the financial requirement, she liquidates part of her investment 2 months prior to the date of application and transfers £62,500 in cash to her personal savings account.
She is able to provide a portfolio report showing that the value of the liquidated assets was at least £62,500 7 months prior to the date of application. The cash savings meet the requirements of Appendix FM-SE at the date of application and, by combining the period the money was held as investments with the period the money has been held as cash savings, the funds have been owned by the applicant’s partner and
under their control for at least the 6 months prior to the date of application. So the financial requirement is met through Category D cash savings.
The above example is where investments of 62,500 GBP have been liquidated 2 months prior to the application. In this situation, one has to show that the liquidated assets were valued at 62,500 GBP for at least 6 months prior to the date of application. Hence the providing of the portfolio statements.

In your case you appear to, already, have cash savings from income. In that case you need to provide statements of 6 months to show that these savings have been at or above 62,500 in the personal account. In addition , you should provide statements showing the funds being moved from the business account to the personal account - in other words a paper trail of where the funds came from.
SanDiegogirl is offline  
Old Oct 27th 2018, 8:43 pm
  #12  
Forum Regular
Thread Starter
 
Joined: Oct 2018
Posts: 58
pendledreams5 is an unknown quantity at this point
Default Re: Self-employment savings for financial requirement

Originally Posted by SanDiegogirl View Post
The above example is where investments of 62,500 GBP have been liquidated 2 months prior to the application. In this situation, one has to show that the liquidated assets were valued at 62,500 GBP for at least 6 months prior to the date of application. Hence the providing of the portfolio statements.

In your case you appear to, already, have cash savings from income. In that case you need to provide statements of 6 months to show that these savings have been at or above 62,500 in the personal account. In addition , you should provide statements showing the funds being moved from the business account to the personal account - in other words a paper trail of where the funds came from.
ok, thank you for explaining that! I appreciate it
pendledreams5 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.