Appendix FM Visa Rules: The Financial Requirement

Employment Income can be salaried or non-salaried.

Salaried employment includes that paid at a minimum fixed rate (usually annual) which is usually subject to a contractual minimum number of hours to be worked.

Non-salaried employment includes that paid at an hourly or other rate (and the number and/or pattern of hours required to be worked may vary) or paid an amount which varies according to the work undertaken.

Here are the various ways income from employment can be counted towards the financial requirement of your visa application.

Employed in the UK

Income from employment can be used to meet the financial requirement if:

1. working in the UK
2. working for 6 months or more for the same employer

Employed Abroad (NOT in the UK)

If the Sponsor is returning to the UK with their partner then employment income can be used to meet the financial requirement providing:

1. they have been working for the same employer for the past six months
2. they have a job offer for employment in the UK which starts within 3 months of them returning to the UK
3. the income from this job is equal to or above the minimum income threshold

For salaried employment, the salary should be the same or more than their minimum income requirement for the six month period.

For non-salaried employment, it is slightly more complicated so we have included an example to help clarify things.

For salaried employment, the salary should be the same or more than their minimum income requirement for the six month period.

For non-salaried employment, annual income is calculated in the following steps:

• Step 1: Add up the gross income received in the last 6 months
• Step 2: Divide this by 6 in order to get a monthly average
• Step 3: Multiply this monthly average by 12 in order to get an annual average

If income from employment is below the required minimum income threshold then this can be combined with non-employment income, cash savings or pension income in order to meet the minimum income requirement.

Employment Income can be salaried or non-salaried.

Salaried employment includes that paid at a minimum fixed rate (usually annual) which is usually subject to a contractual minimum number of hours to be worked.

Non-salaried employment includes that paid at an hourly or other rate (and the number and/or pattern of hours required to be worked may vary) or paid an amount which varies according to the work undertaken.

Employed in the UK

Income from employment can be used to meet the financial requirement if the sponsor has not been in the same employment for at least 6 months or on a variable income.

Returning to the UK with partner

The sponsor does not need to be employed but needs to have:

1. a job offer starting within three months of their return,
2. with a gross annual starting salary (or in non-salaried employment a gross annual income from that employment) equal to or above the required threshold; and
3. received a gross amount of salaried or non-salaried employment income overseas equal or above the required threshold, in the 12 months preceding the application.

Calculating Annual Income

Annual income must be calculated in the following 2 ways:

Gross Annual Income or Salary at the date of application

If in salaried employment this will be the gross annual salary when you make the application.
If in non-salaried employment, the calculation is explained in the example below.

• Step 1: Add up the gross income received in the time Sponsor has been doing that job
• Step 2: Divide this by the number of months you have received this income in order to get a monthly average
• Step 3: Multiply this monthly average by 12 in order to get an annual average

Actual income or salary received in the 12 months prior to the application

Calculate actual income (from salaried or non-salaried employment) in the 12 months preceding the application.

If in salaried employment you must count your annual gross salary and if your employment is non-salaried you will add up your total income.

Your income should be above the minimum income threshold from both calculations

Click here to see what employment documents you would need to provide for your visa application

The following non-employment income can be counted to meet the financial requirement providing this income has been received within 12 months of the visa application.

• Property rental income
• Interest from savings
• UK Maternity Allowance, Bereavement Payment, Bereavement Allowance and Widowed Parent’s Allowance
• Payments under the War Pensions Scheme, the Armed Forces Attributable Benefits Scheme and the Armed Forces Compensation Scheme
• Ongoing payments from a structured legal settlement
• Ongoing insurance payments
• Ongoing payments from a structured legal settlement
• A maintenance grant or stipend (not a loan) associated with undergraduate study or postgraduate study or research
• Maintenance payments from a former partner of the applicant in relation to the applicant or any children of the applicant and their former partner. Also, maintenance payments from a former partner of the applicant’s partner in relation to that partner
• Dividends or other income from investments, stocks and shares, bonds or trust funds. (Dividends can only be counted in this category if the company the dividends are drawn from is not a “specified limited company”.
• To see what a “specified limited company” is go to Number 6: Director or an Employee of a “specified limited company”)

Click here to see what non-employment income documents you would need to provide for your visa application

Cash Savings is money which is in a current, deposit or investment account provided by a regulated financial institution in the UK or abroad. Cash Savings will not count where the money is not readily accessible. So, money which cannot be immediately withdrawn, like a pension fund, will not count.

Cash savings must be

• over £16,000, anything below this will not be counted.
• held for at least 6 months
• in the name of the sponsor and/or applicant
• from a legal source

For a more detailed guide on how to use Cash Savings to meet the financial requirement, check out our Cash Savings guide here.

If you or your partner receive a state pension (UK or foreign), private pension or an occupational pension then the gross annual income of this can be used to meet the financial requirement. You must be receiving this pension for at least 28 days before you make your visa application. Pension income can be combined with employment income, non-employment income and cash savings.

Click here to see what pension income documents you would need to provide for your visa application

In the UK, a financial year runs from 6 April to 5 April the next year but this may be different in other countries.

Evidence of self-employment income can be used from

• the last full financial year or
• the average from the last two financial years

The income will be the gross taxable profits from their share of the business in the relevant financial year(s). This will not include any expenses, liabilities or deductable allowances, which may be applied to establish the final tax liability.

Click here to see what self-employment documents you would need to provide for your visa application

Limited companies are owned by its shareholders.

If a shareholder is also a director of the company then they may receive dividends in which case they can use non-employment income to show that they meet the financial requirement.

If a shareholder is also an employee of the company then they will receive a salary in which case they can use employment income to show that they meet the financial requirement.

However, if you are a director or an employee of a “specified limited company” in the UK, then the evidence you need to provide in order to show you meet the financial requirement will be different.

A “specified limited company” is defined in Paragraph 9(a) of Appendix FM-SE.

Click here to see what documents you would need to provide for your visa application

The Home Office have a policy that removes the financial requirement for those on a permitted benefit.

If you receive any of the following benefits then you do not have to meet the financial requirement.

• Disability Living Allowance;
• Personal Independence Payment;
• Attendance Allowance;
• Carer’s Allowance;
• Severe Disablement Allowance;
• Industrial Injury Disablement Benefit;
• Mobility Supplement or War Disablement Pension under the War Pensions Scheme.
• Guaranteed Income Payment under the Armed Forces Compensation Scheme;
• Armed Forces Independence Payment
• Constant Attendance Allowance,

You will still need to show self-sufficiency i.e. that you and your partner can survive without having to apply for more benefits due to the partner obtaining a visa.

Read our guide on Adequate Maintenance and Benefits for detailed instructions on how to meet the financial requirement.

Click here to see what benefits documents you would need to provide for your visa application