ILR-Further documents required to show Dividend Tax

[shahanurreza]

One of my friend extended his Tier 1 showing income partly as self employed from his business.
He was paid through his company as a salaried employee as well as took dividends.
He paid his corporation tax but for the lack of accounting knowledge he mixed corporation tax with dividends income
and did not pay tax against dividends for that particular year and declared he was not selfemployed.

Now he went for ILR and HO raised this issue and asked for the evidence showing he has paid tax against those dividends rather the refusal.

He has now paid the appropriate tax now by re-submitting SA302 and has sent a proof that he has paid the tax and waiting for decision.

Has any one has faced similar situation?
Does any one think declaring 'not self employed' before and then correcting that again could be an issue on ILR? Could it fall into any ground of refusal?
Can they invalid his previous leave to remain?

Please, share your view or experience on this.

[Wanderer]

He's not self employed.

Has he paid the interest and penalties too on the outstanding tax?

[shahanurreza]

The interest has not been calculated yet as the HMRC system has not been updated yet with the file. The file is hanging with their online department but they have received payment which was made against leftover dividends. As soon as it is updated in their tax system he will pay the penalties.

[shahanurreza]

Dear Wanderer,
His concern is the one where he declared he was not self employed and now he declared and paying the tax and penalties although this is not a problem with HMRC. Would that be a problem with HO?
Thanks.

[muraxza]

There is a minimum 10% tax on dividend income depending the amount of dividend you take however if the dividend is lower then the income slab then you usually pay this in your declared profit of the company which is corporation tax, however this dividend needs to be declared in SA302
what was the dividend income?

[shahanurreza]

Dear Blocked Username,

The tax has been submitted and the due is paid online too although it is not updated yet in HMRC tax system.
Can HO pick this up? what do u think?

[muraxza]

Dear Blocked Username,

The tax has been submitted and the due is paid online too although it is not updated yet in HMRC tax system.
Can HO pick this up? what do u think?

If its not declared then they will certainly pick this as they only look for SA302 and in certain cases they also ask for the company accounts however due to data act protection they can't check your company accounts but they have access to your individual tax returns now a days so they will definitely, what year does it belongs to?

[shahanurreza]

It was 12/13. Now it declared through SA302 and the calculated due amount has also been paid. As the online file is hanging around to their online department it has not been updated yet to the Tax system so the money which was paid is still not allocated.

However, my question or concern is it was declare as 'not self employed' earlier and then declared self employed after 2 years.

Does it fall into any general refusal ground?

[Wanderer]

Some employed by their own one-man company is not self-employed. I'm assuming this 'friend' is an IT contractor?

[muraxza]

It was 12/13. Now it declared through SA302 and the calculated due amount has also been paid. As the online file is hanging around to their online department it has not been updated yet to the Tax system so the money which was paid is still not allocated.

However, my question or concern is it was declare as 'not self employed' earlier and then declared self employed after 2 years.

Does it fall into any general refusal ground?

Either Self employed or being as a director of a company draw a dividend these both information goes into the SA302, even if your friend was taking salary from his own company he still liable to provide this information into sa302

now if he has not declared self employed before and then declaring self employed, did he get registered with HMRC as a self employed if yes then he should be getting class 2 bill from hmrc, and if he not then this may lead to refusal..

[Jas2013]

One of my friend extended his Tier 1 showing income partly as self employed from his business.
He was paid through his company as a salaried employee as well as took dividends.
He paid his corporation tax but for the lack of accounting knowledge he mixed corporation tax with dividends income
and did not pay tax against dividends for that particular year and declared he was not selfemployed.

Now he went for ILR and HO raised this issue and asked for the evidence showing he has paid tax against those dividends rather the refusal.

He has now paid the appropriate tax now by re-submitting SA302 and has sent a proof that he has paid the tax and waiting for decision.

Has any one has faced similar situation?
Does any one think declaring 'not self employed' before and then correcting that again could be an issue on ILR? Could it fall into any ground of refusal?
Can they invalid his previous leave to remain?

Please, share your view or experience on this.

@ shahanurreza
What peo your frd went ?

[tungha1979]

@ shahanurreza

did he applied as salaried or as self employed now for his ILR?

[shahanurreza]

@ shahanurreza

did he applied as salaried or as self employed now for his ILR?

He applied as both.

[shahanurreza]

now if he has not declared self employed before and then declaring self employed, did he get registered with HMRC as a self employed if yes then he should be getting class 2 bill from hmrc, and if he not then this may lead to refusal..

Yes he registered himself as self employed. What is class 2 bill? And as I said he has already paid the amount due for the tax of that dividend amount but it has not just been updated with tax system. He can see the penalties as late filing as well.

"Declaring not self employed before and correcting this again later" would that become under good character or anything else or any other refusal ground?

[Wanderer]

now if he has not declared self employed before and then declaring self employed, did he get registered with HMRC as a self employed if yes then he should be getting class 2 bill from hmrc, and if he not then this may lead to refusal..

Yes he registered himself as self employed. What is class 2 bill? And as I said he has already paid the amount due for the tax of that dividend amount but it has not just been updated with tax system. He can see the penalties as late filing as well.

"Declaring not self employed before and correcting this again later" would that become under good character or anything else or any other refusal ground?

Sounds like a right mess, doesn't he have an accountant?