Minimum income threshold: Categories F and G—self-employment and directors and employees of specified limited companies
Produced in partnership with Jo Renshaw of Turpin & Miller LLP
Minimum income threshold: Categories F and G—self-employment and directors and employees of specified limited companies

The following Immigration guidance note Produced in partnership with Jo Renshaw of Turpin & Miller LLP provides comprehensive and up to date legal information covering:

  • Minimum income threshold: Categories F and G—self-employment and directors and employees of specified limited companies
  • Whose self-employment income can be relied upon?
  • Who counts as 'self-employed' for the purposes of Appendix FM?
  • Definition of ‘full financial year’
  • Sole traders and partners—calculating the relevant income
  • Director or employee of a specified company—calculating the relevant income
  • Construction Industry Scheme
  • Combining employment and self-employment income, and the requirement for ongoing self-employment
  • Entry clearance applications and the requirements for ongoing/prospective work
  • Fiancé(e)s or proposed civil partners—subsequent applications
  • more

This Practice Note looks at the requirements for meeting the minimum income threshold under the five-year route to settlement when relying in whole or in part on income derived from self-employment. The Immigration Rules treat directors and (for decisions taken on or after 6 April 2017) certain employees of 'specified limited companies' as if they were self-employed for these purposes and as regards which other income can be combined towards meeting the threshold, so all references to self-employment and self-employed person(s) also apply to persons who fall within this class.

As with the other sources of income that can be relied upon towards the financial requirements, self-employment income is assigned lettered categories in the Immigration Directorate Instruction (IDI) that deals with the financial requirements of Appendix FM, and in the relevant application forms. These categories are not referred to in Appendix FM or Appendix FM-SE, although the different ways that the income source can be relied on are set out there, and this forms the basis for dividing the source into categories.

Self-employed persons have a choice of relying on income:

  1. from the last full financial year of the country in which the income was taxed—this will be a Category F application, or

  2. from an average of the last two full financial years of the country in which the income was taxed—this will