Meeting the Spouse Visa financial requirement can be more complex where your spouse/ sponsor is a director of a limited company, particularly where the sponsor is also a shareholder and employee of the business.The financial requirements are set out in Appendix FM and Appendix FM-SE of the Immigration Rules.
The Financial Requirement
Spouse visa applicants must show a minimum income of:
- £29,000 per year (current threshold), unless exemptions apply.
For company directors, income is assessed under Category F or Category G of Appendix FM-SE.
Category F – Last Financial Year
Category F, the Home Office will assess:
- Salary from the company
- Dividends from the company
- Based on the last full financial year
- Using company accounts and personal tax returns
Documents required typically include:
- Company accounts
- Personal acccounts
- CT600
- Company tax overview
- Dividend vouchers
- Personal tax return (SA302) if also self-employed
- Payslips If also employee of the Company
Category G – Average of Last Two Financial Years
If income varies, Category G allows the Home Office to assess the average income over the last two financial years.
This can be useful where:
- The business had a lower income year
- Dividends fluctuated
- The director took variable salary/dividends
Common Mistakes
Common reasons for refusal include:
- Incorrect financial category used
- Dividend vouchers missing
- Corporate Tax returns not submitted
- Mismatch between accounts and personal bank statements
Spouse visa financial requirement refusals are very common for company directors because the document requirements are extremely strict.
Important Legal Note
Appendix FM-SE is very technical, and the Home Office caseworkers must follow the document requirements strictly. However, case law such as MM (Lebanon) v Secretary of State for the Home Department confirms that the financial requirement itself is lawful, but decisions can still be challenged where the Home Office applies the rules incorrectly.
Advice for Company Directors Applying for a Spouse Visa
If you are a company director, you should:
- Speak to your accountant early
- Ensure accounts and tax returns are completed before applying
- Ensure dividends are properly declared
- Ensure salary and dividends meet the financial requirement
- Prepare all Appendix FM-SE documents carefully
- Seek legal advice before submitting the application
Spouse visa applications involving company directors require careful preparation, but with the correct documentation, the financial requirement can be successfully met.