"Specified limited company''?

Hi all.
So Ived decided to sit and thoroughly reread - as opposed to searching for answers to specific questions - the guidance notes to make sure I am not missing anything from my ILR application and something stuck out at me.

I hit the part about being a director or employee of a "specified limited company." On the application, it only asks if you are a director so I didnt think about it further. But as the guidance notes says or employee, I wasnt sure. My husband works for a UK governing body but I know it is classed as Ltd. I asked my husband, and he said most companies are classed ar Ltd, including the governing body he worked for during the last two visas.

So I tried to find exactly what that term meant, and freemovement.org had this:

You would also have to count your income in Category F or G if you are either the director or employee (or both) of a “specified limited company” in the UK. This essentially means a family business. A specified limited company is where:

the person is either a director or employee of the company, or both, or of another company within the same group; and
shares are held (directly or indirectly) by the person, their partner or the following family members of the person or their partner: parent, grandparent, child, stepchild, grandchild, brother, sister, uncle, aunt, nephew, niece or first cousin; and
any remaining shares are held (directly or indirectly) by fewer than five other persons.


So, we are not related to anyone in this company. I dont know who owns the shares or even if there are as they dont really make a profit. Their income is meant to fund the sport, which is why they rely on funding so much. I know there is a board, but really only half a dozen direct employees. It is a UK governing body that is funded by other UK governing bodies, so its def not family run.

Is freemovement.org's definition comprehensive? Or is there some possibility that having "Ltd" on any of our evidence going to create a problem?

Is he an employee or registered as self-employed?

Does he pay tax through PAYE or does he file his own taxes as self-employed every year?

If he is an employee and pays tax through PAYE, then he is a salaried/non-salaried employee and applies using either Category A or B.

If he is registered as self-employed and files a UK tax return for his income each year in order to pay his taxes, then he would have to apply as self-employed through Category F or G... but that would require about 14 different self-employment documents, and he would only be allowed to use income earned between April 2018 and April 2019 and none of his income from the last 8/9 months would be considered.


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Is he an employee or registered as self-employed?

Does he pay tax through PAYE or does he file his own taxes as self-employed every year?

If he is an employee and pays tax through PAYE, then he is a salaried/non-salaried employee and applies using either Category A or B.

If he is registered as self-employed and files a UK tax return for his income each year in order to pay his taxes, then he would have to apply as self-employed through Category F or G... but that would require about 14 different self-employment documents, and he would only be allowed to use income earned between April 2018 and April 2019 and none of his income from the last 8/9 months would be considered.


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He is an employee. He pays taxes and NI and his student loans and all that through PAYE like any other salaried employee.

He does have a small business on the side that he does self assessment, but we are not using that for our MIR requirement. This job is salaried employment, with all deductions done through the company like normal. It just has "ltd" in its title. Its website even ends in ".org".

Its just this part of the guidance docs that is tripping me up:

9.1.1. Where the applicant’s partner (and/or the applicant if they are in the UK with permission to work) is in self-employment, or is either the director or employee (or both) of a specified limited company in the UK, at the date of application, they can use income from the last full financial year to meet the financial requirement.


Where it says "or employee". On the application, it doesnt ask "or employee".... just if you are a director.  Which my husband isnt. He is a manager who gets a monthly paycheck based on an annual salary with all the tax stuff done through the company. So I am just confused by the wording.

That does not apply to him.

It only applies in the following situation:
- the person is either a director or an employee of the company
AND
- either the person, their partner, or a family member of the person or their partner, holds shares in the company
AND
- there are fewer than 5 other shareholders in total

He is not in this situation, therefore you just ignore anything related to limited companies and self-employment categories.

From Appendix FM 1.7:



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Ah OK. Its all the "ands" I must have been misinterpretting. Thanks

My advice:  Stop worrying about your application!

You've already determined that he meets Category A and you have all the financial documents sorted and ready to go, so you can stop thinking about it for now.

Sounds to me like you're pretty much all ready to go, so all you need to do now is wait until you are eligible to submit the online application (which will be early January, right?), and then do another double-check of your documents just before you submit it just to make sure you have everything.

Until then, step away from the application, and take some time out to relax and enjoy the Christmas holidays

My advice:  Stop worrying about your application!

You've already determined that he meets Category A and you have all the financial documents sorted and ready to go, so you can stop thinking about it for now.

Sounds to me like you're pretty much all ready to go, so all you need to do now is wait until you are eligible to submit the online application (which will be early January, right?), and then do another double-check of your documents just before you submit it just to make sure you have everything.

Until then, step away from the application, and take some time out to relax and enjoy the Christmas holidays

I was gonna try... But now I have a new problem. Well, old problem but new issue. I updated an old thread about it, so full details are on it but basically:

The payroll provider is refusing to change our letter addressing sick pay and payslip discrepancies anymore - We asked him three times to specify the months of the sick pay and he never did. Its a external company. Can we just have the CEO address everything in his employment letter? Cause this accountant is just being a jerk.

I was gonna try... But now I have a new problem. Well, old problem but new issue. I updated an old thread about it, so full details are on it but basically:

The payroll provider is refusing to change our letter addressing sick pay and payslip discrepancies anymore - We asked him three times to specify the months of the sick pay and he never did. Its a external company. Can we just have the CEO address everything in his employment letter? Cause this accountant is just being a jerk.

That sounds fine to me - with my usual "I'll leave it to a real expert here" disclaimer. So long as someone that has the authority to make that statement makes it, then that really should be fine.