Spouse Visa Questions(s)- Sponsor Lived Abroad for Five Years Just Returned

He gets paid through a Hudson CIS contract. So the company that works for for did type out a letter including everything you stated and I also included the Hudson CIS contract.

He does priced work so they stated that and included the words "non salaried employee" in there as well.

do you think that is good enough?

I just looked at the Hudson website and I don't really understand it but are you sure that he is not considered to be self employed?

I just looked at the Hudson website and I don't really understand it but are you sure that he is not considered to be self employed?

I see what you mean, larrabee, but I think TexasGal80's husband is probably okay...  "Hudson Contract acts as the ‘engager’ sitting within contracting chains between construction firms and self-employed freelance construction operatives.  HMRC would call us an Employment Intermediary or Labour Provider.  Taking on this role allows us, for a small fee, to take on the employment status risks which would otherwise fall upon those construction firms."  So, they're akin to a temp agency in structure.  The employee essentially works for Hudson, and Hudson then contracts the employee's services to the client.  Meanwhile, Hudson is doing with payroll and witholdings and stuff.

TexasGal80, does your husband get paid through PAYE, with regular tax witholding and stuff?

he is considered a sub-contractor, but since they pay him and take out taxes and all that I was under the impression that we could list him as a non-salaried employee.  See below and tell me what you think? I hope I was correct in thinking that.

5.5.17. A person working as a subcontractor under the Construction Industry Scheme (CIS), administered by HMRC (and under which the contractor deducts tax and National Insurance contributions from the payments made to the subcontractor), can, as an alternative to meeting the requirements of Appendix FM-SE in respect of self-employment, choose
instead to count their CIS income as income from salaried employment. If they do, they must meet the requirements of paragraph 2 of Appendix FM-SE for specified evidence for salaried employment, subject to reflecting their status as a CIS contractor rather than an employed person. So, they must provide CIS payment slips in place of payslips, a letter from the CIS contractor in place of an employer’s letter and the required personal bank statements. If a person cannot provide this evidence, or it is not clear that they are covered by the CIS scheme, their income should be treated as income from self-employment and the relevant self-employment evidence must be provided.

I see what you mean, larrabee, but I think TexasGal80's husband is probably okay...  "Hudson Contract acts as the ‘engager’ sitting within contracting chains between construction firms and self-employed freelance construction operatives.  HMRC would call us an Employment Intermediary or Labour Provider.  Taking on this role allows us, for a small fee, to take on the employment status risks which would otherwise fall upon those construction firms."  So, they're akin to a temp agency in structure.  The employee essentially works for Hudson, and Hudson then contracts the employee's services to the client.  Meanwhile, Hudson is doing with payroll and witholdings and stuff.

TexasGal80, does your husband get paid through PAYE, with regular tax witholding and stuff?

he does not get paid through PAYE, but they do withold tax and he does get pay slips showing that. The Hudson Contract is basically like a payroll company it seems.

he is considered a sub-contractor, but since they pay him and take out taxes and all that I was under the impression that we could list him as a non-salaried employee.  See below and tell me what you think? I hope I was correct in thinking that.

5.5.17. A person working as a subcontractor under the Construction Industry Scheme (CIS), administered by HMRC (and under which the contractor deducts tax and National Insurance contributions from the payments made to the subcontractor), can, as an alternative to meeting the requirements of Appendix FM-SE in respect of self-employment, choose
instead to count their CIS income as income from salaried employment. If they do, they must meet the requirements of paragraph 2 of Appendix FM-SE for specified evidence for salaried employment, subject to reflecting their status as a CIS contractor rather than an employed person. So, they must provide CIS payment slips in place of payslips, a letter from the CIS contractor in place of an employer’s letter and the required personal bank statements. If a person cannot provide this evidence, or it is not clear that they are covered by the CIS scheme, their income should be treated as income from self-employment and the relevant self-employment evidence must be provided.

Great, it's in the guidance.  The only thing is that the paragraph you quoted says you can choose to use it as salaried employment, not non-salaried?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/636618/Appendix_FM_1_7_Financial_Requirement_Final.pdf

he does not get paid through PAYE, but they do withold tax and he does get pay slips showing that. The Hudson Contract is basically like a payroll company it seems.

No one gets paid through PAYE, they are paid by their employer/the payroll company and then their taxes are deducted from each payslip through PAYE (Pay As You Earn).

So, basically:
- if his income tax and NI insurance are taken out of his payslips automatically each month (through PAYE), he is considered an employee (either salaried or non-salaried)

- if his income tax and NI are not deducted from his payslips and he has to file taxes and pay his tax at the end of the financial year, then he is considered self-employed.


Sent from my iPhone using Tapatalk

No one gets paid through PAYE, they are paid by their employer/the payroll company and then their taxes are deducted from each payslip through PAYE (Pay As You Earn).

So, basically:
- if his income tax and NI insurance are taken out of his payslips automatically each month (through PAYE), he is considered an employee (either salaried or non-salaried)

- if his income tax and NI are not deducted from his payslips and he has to file taxes and pay his tax at the end of the financial year, then he is considered self-employed.

Thank you, ksand24... I have never worked in the UK, so I wasn't sure exactly how to say what you did, but I think I had the right understanding.  PAYE is just the system of tax witholding.

Thank you, ksand24... I have never worked in the UK, so I wasn't sure exactly how to say what you did, but I think I had the right understanding.  PAYE is the system of tax witholding... you'd actually be paid either directly by your company or through a third-party payroll company, who comply with the PAYE system.  Yes?

Yes, PAYE is just the system by which you pay income tax. Each year, you are assigned a tax code, which determines how much tax you should be paying... and this code is used to deduct the correct amount of tax and NI from your payslip each month. The idea is that you pay the correct amount of tax through your payslips, so that you don't need to pay or file taxes at the end of the year.

The basics of how it works:

HMRC will:

- calculate a tax code for you
-  send you a PAYE coding notice (a form ‘P2’), if they are required to do so, showing you how they have worked out your tax codes. For cases where HMRC are not obliged to issue a coding notice you can still ask them for one
- tell your employer or pension provider what your tax code is (but not how it has been worked out).

Your employer or pension provider then uses that tax code to work out how much tax to take off your weekly or monthly pay or pension. They regularly pay over that tax (and National Insurance contributions, if appropriate) to HMRC. You can view your tax code and how it has been calculated on the HMRC website through your Personal Tax Account.

http://www.taxvol.org.uk/about-tax/paye/

Also see:
https://www.citizensadvice.org.uk/debt-and-money/tax/how-to-pay-income-tax/the-pay-as-you-earn-paye-system/

Great, it's in the guidance.  The only thing is that the paragraph you quoted says you can choose to use it as salaried employment, not non-salaried?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/636618/Appendix_FM_1_7_Financial_Requirement_Final.pdf

So he is a sub-contractor, not a salaried employee, but since he gets paid under the CIS scheme, we are filing under 3A(income from salaried employment in the UK) category B, because he has not worked in the UK for six months. He is a sub-contractor and gets paid different rates for different jobs, so do you guys think this will be an issue?

So he is a sub-contractor, not a salaried employee, but since he gets paid under the CIS scheme, we are filing under 3A(income from salaried employment in the UK) category B, because he has not worked in the UK for six months. He is a sub-contractor and gets paid different rates for different jobs, so do you guys think this will be an issue?

I don't know anything about the CIS Scheme, however, I'm just looking it up on the gov.uk website and it sounds like it comes under Self-Employment income, because it says he will have to register as a Subcontractor (if he hasn't already), either a sole trader or as the director of a limited company, and that he will need to file taxes each year because the money deducted through the CIS scheme towards tax and NI may not be correct.

If this is the case, then unfortunately, this will mean his income falls under self-employment, which will also mean you will not qualify for the visa until after April 2020... when he has completed and filed tax for a full tax year (assuming his tax year is April to April).

See here:
https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/how-to-register
https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/pay-tax-and-claim-back-deductions

Edited:
Never mind... just ignore me. I didn't read the part from Appendix FM 1.7 about being able to use CIS payments under employment income.

I don't know anything about the CIS Scheme, however, I'm just looking it up on the gov.uk website and it sounds like it comes under Self-Employment income, because it says he will have to register as a Subcontractor (if he hasn't already), either a sole trader or as the director of a limited company, and that he will need to file taxes each year because the money deducted through the CIS scheme towards tax and NI may not be correct.

If this is the case, then unfortunately, this will mean his income falls under self-employment, which will also mean you will not qualify for the visa until after April 2020... when he has completed and filed tax for a full tax year (assuming his tax year is April to April).

See here:
https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/how-to-register
https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/pay-tax-and-claim-back-deductions

Look at the link further up on this page of the thread and read the bit about CIS and meeting the requirement.  Looks like they are fine and it will be treated as salaried employment?

Look at the link further up on this page of the thread and read the bit about CIS and meeting the requirement.  Looks like they are fine and it will be treated as salaried employment?

Ah, crap - sorry... I've never even noticed anything about CIS in Appendix FM 1.7 (this thread is the first I've heard of it).

I'll edit my post above.

OK Great. I was almost in tears waiting for my husband to come home from work so we could sort it all out. So you guys think everything is ok?

I just got a letter from the landlord. So i think I have everything? I will definitely let you know how the CIS thing works, if it all works out. It seems a zillion times easier to sort out than applying as "self employed".

OK Great. I was almost in tears waiting for my husband to come home from work so we could sort it all out. So you guys think everything is ok?

I just got a letter from the landlord. So i think I have everything? I will definitely let you know how the CIS thing works, if it all works out. It seems a zillion times easier to sort out than applying as "self employed".

Yes.  I think the question is can he be considered salaried versus non-salaried and does it matter....  I'm not sure and I'm a bit too tied up at work to dig into the guidance.  Hoping someone else has the bandwidth!

does it matter only for the letter of employment? That is the only place where the word "non-salaried" is used as well as the sponsor letter.

there is no where on the application where I have to select salaried or non-salaried. I'm unsure what if I should do. I have been reading, but there is no direct answer. It says it will be treated as salaried employment, but not technically non-salaried. But as a sub-contractor, they would have to know that he would not earn the same wages every week.

I will keep reading.  Please let me know if anyone has any input.

thank you!