Using cash savings as proof of income
Aug 3rd 2020, 8:27 pm
#1
Just Joined
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Joined: Jul 2016
Posts: 29
Using cash savings as proof of income
Is anyone / has anyone used cash savings only as their proof of income? If so, were your savings in the UK or overseas?
As recent retirees, this will likely be our approach. I'm hoping to get a heads up on any wrinkles / gotchas when doing so.
As recent retirees, this will likely be our approach. I'm hoping to get a heads up on any wrinkles / gotchas when doing so.
Aug 3rd 2020, 9:05 pm
#2
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 50,075
Re: Using cash savings as proof of income
You either prove assets or income. Cash savings are not "proof of income", they are proof that you have sufficient savings and have chosen the savings route, not the income route.
Your savings can be in the UK or overseas, If they are not denominated in GBP then you have the risk that what started out as sufficient at the start of the six month holding period (unless you are claiming the "proceeds of the sale of property" exception, in which case there is no minimum holding period) might cease to be sufficient if the currency in which you are holding your savings falls in value.
The funds have to be freely accessible, so not locked into a pension account, and you need to net-off any taxes, fees, or penalties, etc. if the savings are in an account that makes such deductions.
Your savings don't all have to be in the same account, or the same currency, or the same country, or the same bank.
Your savings can be in the UK or overseas, If they are not denominated in GBP then you have the risk that what started out as sufficient at the start of the six month holding period (unless you are claiming the "proceeds of the sale of property" exception, in which case there is no minimum holding period) might cease to be sufficient if the currency in which you are holding your savings falls in value.
The funds have to be freely accessible, so not locked into a pension account, and you need to net-off any taxes, fees, or penalties, etc. if the savings are in an account that makes such deductions.
Your savings don't all have to be in the same account, or the same currency, or the same country, or the same bank.
Last edited by Pulaski; Aug 3rd 2020 at 9:14 pm.
Aug 3rd 2020, 9:43 pm
#3
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Joined: Jul 2016
Posts: 29
Re: Using cash savings as proof of income
Right, I probably mixed terms there. My intention is to explore potential problems proving to the UK Gov that we can support ourselves in the UK, when neither of us has a job (in our case, retired).
We're coming from the US, and our cash accounts will be in dollars, in US banks. So it sounds like as long as we have the equivalent in US dollars of £62,500 (or rather, comfortably above that to allow for exchange rate fluctuations), plus on top of that enough for the fees typically incurred transferring money overseas, the UK Gov will be satisfied?
I'm pleasantly surprised, if so. It'd be pretty easy to fudge that information (not that we will or would). Is it simply a case of supplying bank statements dating back X months?
We're coming from the US, and our cash accounts will be in dollars, in US banks. So it sounds like as long as we have the equivalent in US dollars of £62,500 (or rather, comfortably above that to allow for exchange rate fluctuations), plus on top of that enough for the fees typically incurred transferring money overseas, the UK Gov will be satisfied?
I'm pleasantly surprised, if so. It'd be pretty easy to fudge that information (not that we will or would). Is it simply a case of supplying bank statements dating back X months?
Aug 3rd 2020, 9:49 pm
#4
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 50,075
Re: Using cash savings as proof of income
Originally Posted by Sir Spangle
Right, I probably mixed terms there. My intention is to explore potential problems proving to the UK Gov that we can support ourselves in the UK, when neither of us has a job (in our case, retired).
We're coming from the US, and our cash accounts will be in dollars, in US banks. So it sounds like as long as we have the equivalent in US dollars of £62,500 (or rather, comfortably above that to allow for exchange rate fluctuations), plus on top of that enough for the fees typically incurred transferring money overseas, the UK Gov will be satisfied? ....
We're coming from the US, and our cash accounts will be in dollars, in US banks. So it sounds like as long as we have the equivalent in US dollars of £62,500 (or rather, comfortably above that to allow for exchange rate fluctuations), plus on top of that enough for the fees typically incurred transferring money overseas, the UK Gov will be satisfied? ....
.... I'm pleasantly surprised, if so. It'd be pretty easy to fudge that information (not that we will or would). .....
.... Is it simply a case of supplying bank statements dating back X months?
BTW If you're already retired then you have the option to use company, private, and state pensions, from the US and/or UK (or any other countries) to meet the income requirements.
Last edited by Pulaski; Aug 3rd 2020 at 9:53 pm.
