The UK Spouse Visa financial requirement can be met from self-employed income, whether the sponsor is a sole trader, a partner or a franchisee. This income is assessed under Category F or Category G. Appendix FM-SE of the Immigration Rules provides the evidential framework which requires a gross annual income of £29,000, failure to demonstrate income sufficiently may result in a refusal. This post provides an overview of how self-employed income is calculated and evidenced under Categories F and G for a UK Spouse or Partner Visa.
This requirement is one part of the wider Spouse Visa route. It sits alongside the English language requirement for UK partner and spouse visas and the other eligibility rules the application has to meet.
Key overviews
- Category F uses the sponsor’s self-employed income from the last full financial year. Category G uses the mean average of the last two.
- The sponsor may choose which category to use, and in practice relies on whichever produces the higher figure. The self-employment must still be trading at the date of application.
- Only the gross taxable profit from the sponsor’s share of the business is counted, before the personal allowance and the other reliefs that reduce the final tax bill.
- Categories F and G can be combined with employment, non-employment and pension income, but only where that income falls in the same financial year.
- Categories F and G cannot be combined with cash savings. A sponsor with enough savings can meet the requirement through savings alone under Category D.
What are Categories F and G of the spouse visa financial requirement?
Categories F and G are the two categories to demonstrate self-employed income towards the spouse visa financial requirement. They sit within Appendix FM-SE, the part of the Immigration Rules that sets out how income for a partner application is calculated and evidenced. The spouse visa financial requirement is set out at E-ECP.3.1 of Appendix FM.
Category F uses the sponsor’s self-employed income for the last full financial year. Category G uses the mean average of the income for the last two full financial years. The sponsor may choose which to rely on. Category G helps where the most recent year was lower than the year before.
The sponsor must be in self-employment at the date of application, and must show that the self-employment is ongoing. This is the paragraph 19(a) requirement. Income from a business the sponsor has since closed cannot be used.
For a sponsor trading in the UK, the financial year is the one covered by the Self Assessment tax return. It runs from 6 April to 5 April. For self-employment abroad, the financial year follows the tax system of that country, under paragraph 8 of Appendix FM-SE.
Who is treated as self-employed for Categories F and G?
Categories F and G apply to a sponsor who is a sole trader, a partner in a partnership, or a franchisee. A sole trader runs a business as an individual, and may still employ staff. Two or more people share the ownership of a partnership. A franchisee holds the right to run a business under an established brand and system.
For a partner, the income counted towards the financial requirement is the sponsor’s share of the partnership’s taxable profit, not the whole partnership profit. Each partner’s Unique Taxpayer Reference, or the partnership’s own, identifies the business to HMRC.
An equity partner is not treated as self-employed. Under paragraph 17 of Appendix FM-SE, the income an equity partner draws from the partnership, including any profit share, is treated as salaried employment. It is assessed under Category A or Category B.
A sponsor who is a director or employee of their own limited company is assessed differently again. Where the company is a specified limited company, meaning one the sponsor or their family owns, that income is assessed under Categories F and G using the company’s accounts. The company director income guide covers that route.
How is self-employed income calculated under Category F?
The Home Office assesses Category F income as the gross taxable profit from the sponsor’s share of the business in the last full financial year. This is set out at paragraph 19(b) of Appendix FM-SE.
The taxable profit is the profit after trading expenses but before the personal allowance and the other reliefs that reduce the final tax bill. Deductible allowances, expenses or liabilities applied to reach the final tax liability are not taken off the figure. Business expenses already accounted for in the taxable profit are not added back.
Where the sponsor is a partner, only their share of the partnership’s taxable profit counts. The profit belonging to the other partners is not included.
How is self-employed income calculated under Category G?
The Home Office assesses Category G income as the mean average of the sponsor’s self-employed income across the last two full financial years. The two yearly figures are added together and divided by two.
Category G is the better choice where the most recent year fell below the threshold but the year before was strong. One sponsor has a taxable profit of £24,000 in the last year and £40,000 the year before. The Category G average is £32,000, which meets the requirement. Under Category F the same sponsor would be assessed on £24,000 and would fall short.
For Category G, the specified evidence covers both financial years. The two-year average must reach the level relied on.
Filing the Self Assessment tax return before a spouse visa application
The specified evidence must cover the last full financial year that has most recently ended. Where the sponsor has not yet filed the Self Assessment tax return for that year, it must be filed with HMRC before applying.
A sponsor may have relied on self-employed income for a fiancé or fiancée entry clearance application in the last 12 months. The Home Office may then accept the same income and evidence for the first leave to remain application, under paragraph 19(c) of Appendix FM-SE. The self-employment must still be trading at the date of that application.
Self-employed income where an overseas sponsor is returning to the UK
An overseas sponsor returning to the UK with the applicant can rely on self-employed income earned abroad, provided that income meets the requirement. The overseas financial year applies, and the evidence is a reasonable equivalent of the UK list, under paragraph 8 of Appendix FM-SE.
The self-employment must be ongoing and will continue in the UK. Or a confirmed offer of salaried or non-salaried employment in the UK, starting within three months of the return, is the alternative.
The sponsor continuing the self-employment must provide one of the documents below. Paragraph 8A of Appendix FM-SE requires a start date within three months of the return for each:
- an application to the relevant authority for a licence to trade;
- details of the purchase or rental of business premises;
- a signed employment contract or a signed contract for the provision of services; or
- a signed partnership or franchise agreement.
The returning sponsors income guide covers the wider position for a sponsor moving back to the UK.
Can Category F or G income be combined with other sources?
Category F or Category G income can be combined with salaried and non-salaried employment income, with non-employment income, and with pension income. Paragraph 13(e) of Appendix FM-SE sets this out. It works differently from the employment categories, because all of the income relied on must fall within the same financial year as the self-employment. That income must also still be a source of income at the date of application.
To combine a partner’s salary with the self-employment, the couple show the salary the partner earned during the sponsor’s financial year. They also show that the job is still held at the date of application. The applicant’s own income counts only where the applicant is in the UK with permission to work.
Category F and Category G income cannot be combined with cash savings. This is the paragraph 13(f) rule. A sponsor who holds enough cash savings can meet the requirement through savings alone, under Category D, as a separate route.
Income from different financial years cannot be added together. A sponsor who is both self-employed and a director of their own company cannot combine the two. The Self Assessment year and the company tax year are treated as separate periods under paragraph 13(e). Where two partners are assessed on different financial years, the application relies on the same year or years for both.
What specified evidence is required for Categories F and G?
Appendix FM-SE sets a fixed evidence list for self-employed income, which includes:
- evidence of the tax payable, paid and unpaid for the last full financial year;
- the Self Assessment tax return for that year and the HMRC Statement of Account, the SA300 or SA302;
- proof of registration with HMRC as self-employed, where available;
- the sponsor’s Unique Taxpayer Reference, or the partnership’s;
- where a separate business account is held, business bank statements for the same 12-month period as the tax return; and
- personal bank statements for the same period showing the self-employment income paid in.
The sponsor also provides proof that the self-employment is ongoing. This is a business bank statement dated within three months of the application showing trading transactions. It can instead be recent evidence of a renewed trade licence, business rates, business insurance, employer National Insurance or franchise payments.
One further document is required, from this list:
- audited accounts for the last full financial year, where the business must produce them;
- unaudited accounts and an accountant’s certificate of confirmation from a suitably qualified accountant, where audited accounts are not required;
- a certificate of VAT registration and the VAT return for the last full financial year, where turnover was above the VAT registration threshold;
- evidence of planning permission, where the local authority requires it for the business; or
- a signed franchise agreement.
A franchisee must provide the signed franchise agreement in every case. For Category G, the sponsor provides the same documents for both of the last two full financial years. Any document covering a period that ends on the date of application must be dated no earlier than 28 days before the application is made.
Frequently asked questions
What is the difference between Category F and Category G?
Category F uses the sponsor’s self-employed income from the last full financial year. Category G uses the mean average of the last two full financial years. The sponsor chooses whichever figure is higher.
Which profit figure is used, before or after expenses?
The gross taxable profit. Business expenses already deducted in reaching that figure are not added back. The personal allowance and other reliefs that reduce the final tax bill are not taken off either.
Does the tax return have to be filed before applying?
Yes. The Self Assessment tax return for the last full financial year must be filed with HMRC before the application.
Can self-employed income be combined with a salary?
Yes. The salary must have been earned in the same financial year as the self-employment. The job must still be held at the date of application.
Can a self-employed sponsor use cash savings as well?
Not in combination with Categories F and G. A sponsor who holds enough cash savings can meet the requirement through savings alone under Category D.
Does self-employment abroad count?
Yes, where the sponsor is returning to the UK with the applicant. The sponsor either continues the self-employment here or has a confirmed UK job offer starting within three months of the return.
How Whytecroft Ford can help
Categories F and G are the most document-heavy part of the financial requirement. Whytecroft Ford’s immigration team prepares partner visa applications for self-employed sponsors. That includes sole traders, partners, franchisees, and couples combining self-employment with a salary. The team is experienced, approachable and used to assembling the tax and accounts evidence the immigration rules require.
To discuss a spouse visa financial requirement with our team, call 0208 757 5751 or use the contact form.
The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional. UK Immigration Rules are subject to change. Please do contact the Whytecroft Ford team if you require further advice.
