How to Combine Income and Pensions to Meet the Financial Requirement

20th October 2017

This article briefly looks at the combination of gross income from salaried employment (Category A) and Private/State pensions (Category E).

The financial requirement needs to be met by those making an application in visa categories of Appendix FM of the Immigration Rules.

Calculating the financial requirement with no dependants:

Unless exempt, the applicant must meet the financial requirement. The minimum financial requirement which is commonly known as the ‘minimum income threshold’ for a partner/spouse applying under Appendix FM of the Immigration Rules from 9 July 2012 (and for a partner/spouse applying under Appendix Armed Forces of the Immigration Rules from 1 December 2013), without dependent children, is £18,600.00 per annum.

Calculating the financial requirement with dependent children:

If there are dependants who already have leave, or are applying for leave at the date of application, the financial requirement will differ:

You, your sponsor, or you and your sponsor (jointly), will need to show an additional gross annual income of £3,800.00 for the first child dependant and an additional £2,400.00 for each additional child dependant.

Please see the example calculations below:

1. Partner with no children – annual income of £18,600.00.
2. 1 child in addition to the partner – annual income of £18,600.00 (partner) + £3,800.00 (Child 1) = £22,400.00.
3. 2 children in addition to the partner – annual income of £18,600.00 (partner) + £3,800.00 (Child 1) + £2400.00 (Child 2) = £24,800.00.
4. 3 children in addition to the partner – annual income of £18,600.00 (partner) + £3,800.00 (Child 1) + £2400.00 (Child 2) + £2400.00 (Child 3) = £27,200.00.

Ways of meeting the financial requirement:

There are 5 ways in which the financial requirement can be met (please see Appendix FM Section 1.7 of the Immigration Rules for detailed information and examples on each category):

Category A / Category B:

1. Income from salaried employment of the partner/spouse (and/or the applicant if they are in the UK with permission to work).
2. Income from non-salaried employment of the partner/spouse (and/or the applicant if they are in the UK with permission to work).

Category C:

3. Non-employment income, e.g. income from property rental or dividends from shares.

Category D:

4. Cash savings of the applicant’s partner and/or the applicant, above £16,000, held by the partner and/or the applicant for at least 6 months and under their control.

Category E:

5. State (UK or foreign), occupational or private pension of the applicant’s partner and/or the applicant.

Category F / Category G:

6. Income from self-employment, and income as a director or employee of a specified limited company in the UK, of the partner (and/or the applicant if they are in the UK with permission to work).

Combination of Category A and Category E:

Category E Pensions can be combined with income from:

• Category A: salaried and non-salaried employment;
• part (1) of Category B: salaried and non-salaried employment;
• Category C: non-employment income; and
• Category D: cash savings;

in order to meet the financial requirement.

When making an application under Appendix FM of the Immigration Rules the gross annual income from any State, occupational or private pension which is being received by the applicant or their partner/spouse, can be counted towards the financial requirement.

The applicant or spouse must be receiving their pension income for at least 28 days or more prior to the application being made.

Combination of Category A and Category E Example:

1. Applicant has a gross annual income of £12,000.00 from salaried employment and has been employed with the same employer earning the same salary for a period of over 6 months prior to the date of application.

The applicant’s gross income falls under Category A, however is not alone sufficient to meet the financial requirement of £18,600.00 (financial requirement for main applicant with no dependants).

2. The applicant’s partner/spouse is retired and has been retired for over 12 months prior to the date of application. The applicant’s partner/spouse received a gross annual income of £17,000.00 from a combination of State and private pensions.

The applicant’s partner/spouse’s gross income falls under Category E, however is not alone sufficient to meet the financial requirement of £18,600.00 (financial requirements for main applicant with no dependants).

The applicant and their partner/spouse’s gross income from Category A and Category E can be combined to meet the financial requirement of £18,600.00.

Category A: gross income from salaried employment: £12,000.00

Plus

Category E: gross income from state/private pensions: £17,000.00

Total

Category A + Category E gross income = £29,000.00 combined gross annual income.

Specified Evidence for gross income from salaried employment in the UK:

(Not including self-employment or Director or employee of a specified limited company in the UK (Category E and Category F)).

The evidence required to demonstrate income from salaried employment is specified in Appendix FM-SE of the Immigration Rules:

1. Payslips covering:

a) a period of 6 months prior to the date of application, if the applicant/sponsor has been employed by their current employer for at least 6 months (and where paragraph 13(b) of Appendix FM does not apply); or

b) any period of salaried employment in the period of 12 months prior to the date of application, if the applicant/sponsor has been employed by their current employer for less than 6 months (or at least 6 months but the applicant/sponsor does not rely on paragraph 13(a) of Appendix FM), or in the financial year(s) relied upon by a self-employed person.

2. A letter from the employer(s) who issued the payslips confirming:

a) the applicant/sponsor’s employment and gross annual salary;

b) the length of their employment;

c) the period over which they have been or were paid the level of salary relied upon in the application; and

d) the type of employment (permanent, fixed-term contract or agency).

3. Personal bank statements corresponding to:

the same period(s) as the payslips showing that the salary has been paid into an account in the name of the applicant/sponsor, or in the name of the person and their partner/spouse jointly.

Specified Evidence for gross income from Pensions:

(The evidence required to demonstrate Pension income received is specified in Appendix FM-SE of the Immigration Rules).

To evidence a pension, the following evidence must be provided:

1. Official documentation from:

a) The Department for Work and Pensions (in respect of the Basic State Pension and the Additional or Second State Pension) or other government department or agency, including the Veterans Agency;

b) An overseas pension authority; or

c) A pension company, confirming pension entitlement and amount.

2. At least one personal bank statement:

in the 12 month period prior to the date of application showing payment of the pension into the applicant/sponsor’s account.

For the purposes of sub-paragraph a), War Disablement Pension, War Widow(er)’s Pension and any other pension or equivalent payment for life made under the War Pensions Scheme, the Armed Forces Compensation Scheme or the Armed Forces Attributable Benefits Scheme may be treated as a pension, unless excluded under paragraph 21 of Appendix FM of the Immigration Rules.

Contributor Details:

Sonika Patel is a Solicitor in Aston Brooke Solicitors’ Immigration Department. To discuss anything in this article or for specific legal advice on your case, please contact her on +44 (0)203 475 4321, and she or a member of our team will be able to assist you.

Disclaimer: this article is for general information purposes only. It does not present a detailed statement of the Law and does not constitute as legal advice. This is a summary only, and legal advice should always be sought on an individual case basis.