# Refusal of entry clearance



## manida (Aug 23, 2012)

Hello my gross income is more than £18.600 this is Notice of refusal:

in order to meet financial requirement your sponsor needs a gross income

18.600£ from thé evidence provided in your sponsor's tax calculation your

sponsor gross income from his employment as a self employed is 12.167£

per annum u and ur sponsor income from all other income sources is

12.167£ per annum u have provided no evidence of any saving held by u

or ur sponsor in fact i am awar from his bank statement that he was

overdrawn by 280£ on 11 june 2012 i therefore refuse ur application

under paragraphe EC-P.1.1(d) of appendix FM of the immigration

(E-ECP.3.1) i have therefore refused ur app cos i am not satisfied on

the balance of probabilities that u meet all of the requirements of the

relevant paragraphe of the uk immigration rules

i don't understant why they refuse !!!!!!!

they mistaken or what pls any help befor i fax my appeal


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## 2farapart (Aug 18, 2011)

Just to be clear, it is the UK citizen whose pay is counted (I'm not sure from your post whether you are the sponsor or applicant). If you are the person applying, your pay doesn't count at all. Only your UK partner's pay is counted.

What the refusal seems to suggest is that your sponsor (or you if you are the UK national) only provided enough evidence to add up to £12,167 per year, which is far below the threshold of £18,600. Before you can apply for a 'partner of a UK national' visa, the sponsor needs to provide bank statements, payslips etc proving they earned at least £18,600 in the year and still working in that job.

What evidence did you submit?


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## manida (Aug 23, 2012)

i am applicant my Husband self employed as sole trader his statement of income and expenditure show more than £18.600 
I provided statement of income & self assessment tax calculation
Why they Said on the notice your sponsor gross income from his employment as a self employed is 12.167£ While that gross income exceed £18.6000!!!!!!!!


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## 2farapart (Aug 18, 2011)

Ah - my apologies. Which self-employment category did you apply under? Was it F or G? 

A lot of evidence is required for these categories, and it could be that some evidence was missing and so the sponsor's income was calculated only on the evidence provided (for example: insufficient proof that the sponsor paid enough tax that, when added with his banked earnings, equals £18,600 or more).

Take a look at pages 17-18 (self employed/trader) or 18-19 (limited company based in the UK) of this document, and can you recall issuing every piece of evidence named? http://www.ukba.homeoffice.gov.uk/s...DIs/chp8-annex/section-FM-1.7.pdf?view=Binary Note that, unlike the salaried employment categories, self employment requires *a full 1 or 2 full financial years (e.g. 1st April to 31st March) of evidence.*

Anything missing will mean that aspect will be eliminated from consideration.


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## manida (Aug 23, 2012)

category F 
i don't understand why they write on the notice of refusal that the gross income is £ 12.167 while the gross income more than £ 18.600 It is shown on the statement of income and expenditure


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## Joppa (Sep 7, 2009)

manida said:


> category F
> i don't understand why they write on the notice of refusal that the gross income is £ 12.167 while the gross income more than £ 18.600 It is shown on the statement of income and expenditure


It's very difficult to state with any degree of certainty what has happened without taking a look at the full set of supporting documents you have enclosed. The gross *taxable *income (which must be £18,600 or more) on the statement of income and expenditure isn't the gross income, but it's gross income minus allowable expenses and losses. *So what is stated under gross income and allowable expenses* (such as travel, capital allowance, stationery, telephone, business insurance, accountant's fees etc) *and losses?* It looks like (though I can't be sure as I haven't seen your figures) that gross income minus expenses comes to £12,167, which is taxable income, and it's below the threshold of £18,600, so they have rejected your application.
Am I right?


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## manida (Aug 23, 2012)

MY Notice of immigration decision:

EC-P.1.1(d) section E-ECP / ELIGIBILITY FOR ENTRY CLEARANCE AS A PARTNER

FINANCILA REQUIREMENTS 
ECO REASON FOR REFUSAL 

YOUR SPONSOR IS NOT EXEMPT FROM FINANCIAL REQUIREMENT AS DEFIENED PRAGRAPH 

E-ECP.3.3 I AM NOT ABLE TO TAKE INTO ACCOUNT ANY POTENCIAL EMPLOYMENT YOU HAVE 

AVAILABLE TO YOU IN THE UK OR ANY OFFERS OF FINANCILA SUPPOERT FROM THIRD PARTIES .

IN ORDER TO MEET THE FINANCIAL REQUIREMENT OF THE RULES YOUR SPONSOR NEEDS A GROSS

INCOME OF AT LEAST £18.600 PER ANNUM .

FROM THE EVIDENCE PROVIDED IN YOUR SPONSOR'S SELF ASSESSMENT TAX CALCULATION YOUR

SPONSOR'S GROSS INCOME FROM HIS EMPLOYMENT AS A SELF EMPLOYED SOLE TRADER IS 

£12,167 PER ANNUM . YOU AND YOUR SPONSOR'S INCOME FROM ALL OTHER INCOMES 

SOURCES ? INCLUDING INVESTMENTS ? RENTAL AND PENSION INCOME IS £12,167 PER 

ANNUM . INORDER TO QUALIFY , you and your sponsor'S REQUIRE IN SAVING IN 

ORDER TO MEET THE FINANCIAL REQUIREMENT . YOU HAVE PROVIDED NO EVIDENCE OF ANY 

SAVING HELD BY YOU OR YOUR SPONSOR'S - FACT I AM AWAR FROM HIS BANK STATEMENTA 

THAT HE WAS OVERDRAW BY 273 PONDS ON 15 JUNE . I THEREFORE REFUSE YOUR 

APPLICATION UNDER PARAGRAPH EC-P.1.1(d) OF THE IMMIGRATION RULES E-ECP.3.1

I HAVE THEREFORE REFUSED YOUR APPLICATION BECAUSE I AM NOT SATISFIED ,ON THE 

BALANCE OF PROBABILITIES , THAT YOU MEET ALL OF THE REQUIREMENTS OF THE RELEVANT 

PARAGRAPH OF THE UK IMMIGRATION RULES .

In my hands now just statement of income and expenditure for the year ended 5 april 2012 

and self assessment tax calculation for 2011- 2012 year ended 5 april 2012 ,bank statements.

WHICH DOCUMENT CAN I send by FAX WITH MY APPEAL TO THE 1 TRIBUNAL ?

PLS HELP ME


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## manida (Aug 23, 2012)

There is no help ?


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## 2farapart (Aug 18, 2011)

It's difficult for us to be able to advise because we can't see the evidence you provided.

Read what Joppa said:


> It's very difficult to state with any degree of certainty what has happened without taking a look at the full set of supporting documents you have enclosed.* The gross taxable income (which must be £18,600 or more) on the statement of income and expenditure isn't the gross income, but it's gross income minus allowable expenses and losses. *So what is stated under gross income and allowable expenses (such as travel, capital allowance, stationery, telephone, business insurance, accountant's fees etc) and losses? It looks like (though I can't be sure as I haven't seen your figures) that gross income minus expenses comes to £12,167, which is taxable income, and it's below the threshold of £18,600, so they have rejected your application.
> Am I right?


In other words, the GROSS INCOME in the statement - was this before or after expenses were deducted? If BEFORE, then this is not yet the taxable income used by UKBA. The expenses (car and phone etc claimed under business use) must be deducted first - and then what is left is the taxable income.


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## Joppa (Sep 7, 2009)

So please tell us, on the statement of income and expenditure you've submitted to UKBA, what are:
Gross income
Expenditure
Gross taxable income


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## manida (Aug 23, 2012)

On the statement of income & expenditure the income is Gross income
Expenditure Gross taxable income


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## Joppa (Sep 7, 2009)

Tell us what are the *figures *under each heading? Such as Gross income £20,000, Expenditure £7,500, Taxable income £12,500.


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## manida (Aug 23, 2012)

The statement of income &expenditure for the year ended 5 april show:
Fares & tips £ 20.000
Deduct expenses £ 10,270
Déduction 10% private use £ 9,386
Net income £ 12,167
Self assessment tax calculation for 2011-2012 year ended 5 April show :
Income received before tax taken off
Total income received £12,167 
Minus personal alliance £ 7,473
Total income on which tax due £3,588
Income tax charges £718.17
Income tax & class 4 national contribuctions £1,060.90


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## Joppa (Sep 7, 2009)

manida said:


> The statement of income &expenditure for the year ended 5 april show:
> Fares & tips £ 20.000
> Deduct expenses £ 10,270
> Déduction 10% private use £ 9,386
> ...


I see. So your partner has only earned £12,167 before tax so your application was correctly refused.
Then there is no point in appealing. Wait until your sponsor has earned the required amount or there are sufficient savings to plug the gap before re-applying.


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## manida (Aug 23, 2012)

They need gross income which is annual income £20.000


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## Joppa (Sep 7, 2009)

manida said:


> They need gross income which is annual income £20.000


No. It's gross *taxable *income (after expenses) that must be £18,600.

_'the income will be the gross *taxable *profits from the business. *Allowances *or* deductable expenses *which are not taxed *will not be counted towards income*.'_

http://www.ukba.homeoffice.gov.uk/s...DIs/chp8-annex/section-FM-1.7.pdf?view=Binary 5.4.2.


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## 2farapart (Aug 18, 2011)

Edit - Joppa beat me to it.


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## manida (Aug 23, 2012)

They need just gross income befor tax £20.000!!! 
Why they wrot income twice on the notice ?


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## 2farapart (Aug 18, 2011)

Your partner made a tax claim that almost half of his earnings were to be treated as business expenses, not taxable income. As a result, the expenses are deducted first before a taxable income figure is calculated.

As UKBA states in the rules, they won't allow those expenses, and that's why his true income before tax is £12,167 (ie this is the only money he has to support you because over £10,000 of his pay already went on business expenses).


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## Crawford (Jan 23, 2011)

manida said:


> They need just gross income befor tax £20.000!!!
> Why they wrot income twice on the notice ?


You are mixing up revenue and income. 

Your husband's revenue for the company was 20,000 UKP but after deducting expenses his gross income was only 12,167.

The expenses are the costs for running the business. After expenses are deducted he made an income before taxes of 12,167.

Expenses cannot be included as income because you cannot live on expenses which you are having to pay out to keep the business running.


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## manida (Aug 23, 2012)

All his income taxable He is sole trader


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## benthomas010 (Jun 5, 2012)

you need to understand the difference between revenue and income. 

you could have revenue of `£100m per year, and still not pass the income test of you expenses to run that business totally £99,985,000. Income from self employment is revenue minus buiness costs (ie PBIT) (Profit before interest and tax). Your partners self emplyment income is not HIS income, its his Businesses income. It he he who sponsors you, not his business. 


ok... let me put it in realistic figures. I dont know his career so i will use Painter and Decorator as an example. 

Painter and decorator gets a job, paint 100 houses. Fee, £20,000 inclusive of labour and materials. 

He then has to go out and spend £3k on paint, 1k on brushes, and £150 on fuel getting back and forth to the job each day. 

How much has he earned from this job? £20,000 or £15,850

he;s only earned £15,850 because without spending the £4150 he wouldn't have been able to do the job. 
All he has earnt in this scenario is £15850 before tax. 

20000 revenue
4150 cost of sales
15850 gross profit (taxable income)


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## ExpatPumpkin (May 30, 2010)

This is the way it works:

Sole trader does £20,000 in REVENUE (actual sales).

But this costs him £8,000 in EXPENSES (cost of doing business), for which he takes a deduction.

This means his GROSS INCOME is only £12,000. This is the amount that he's taxed on, and this is the amount that he has left over to support himself and family. He was not taxed on £20,000. 

Sorry


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## Crawford (Jan 23, 2011)

manida said:


> All his income taxable He is sole trader


Put it another way ........ Income is what you live on. There is gross income (before tax) and net income (after tax)


Your husband has 12,167 Gross income to live on.


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## Joppa (Sep 7, 2009)

Crawford said:


> Your husband has 12,167 Gross income to live on.


And as I have said, that's not enough to sponsor you for a spouse visa.


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## Crawford (Jan 23, 2011)

manida said:


> The statement of income &expenditure for the year ended 5 april show:
> Fares & tips £ 20.000
> Deduct expenses £ 10,270
> Déduction 10% private use £ 9,386
> ...



Look the figure bolded above. You have stated there that *total income before tax* is 12,167.

You need total income of 18,600 before tax to qualify.


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## manida (Aug 23, 2012)

gross income (before tax) £20.000

net income (after tax) £12.167

My husband told me they made a mistake Refer to the notice of decision And you will see


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## Joppa (Sep 7, 2009)

manida said:


> gross income (before tax) £20.000
> 
> net income (after tax) £12.167
> 
> My husband told me they made a mistake Refer to the notice of decision And you will see


We are going round in circles. UKBA has NOT made a mistake. They have correctly interpreted your evidence and concluded your husband doesn't earn enough. They state in their letter of refusal that £12,167 is GROSS income, which it is after taking off allowable expenses. Since it isn't £18,600, you don't meet the financial requirement so your application is refused.

UKBA is correct and your interpretation is wrong. I'm going to close this thread as there is no point in continuing.


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