ILR Refused due to Tax discrepancy

[bkapeed]

Hello All,

My ILR got rejected on 23rd Mar 2016 .

When i first applied Tier 1 general on April 2011 , i showed around 26100 pounds as earnings from self employment.

But when I asked an accountant to file tax return, he filed for only 15000 pounds for tax year 2010-11, due lack of awareness on tax returns submission, i overlooked this.

Due to this discrepancy, i got refused.

I have now 14 calendar days for admin review.

Can some one please help me on this.

is there any way i can justify that this a genuine error or any one had gone through such scenarios. ?

thanks
bkapeed

[Immigrantshimmigrant]

Hi

Which PEO did you go to and was this the only year where you had a tax discrepancy?

Can you shed some more light on your case please

[TechBro]

You asked did anyone go through such scenario. In the last few months every body is going through such scenario. If you type tax in above search field. You'll see all of their cases. Start reading it one by one, you'll get what you need.

[Wanderer]

Not another.....

Why is this so hard, it's almost like people are fiddling their tax, and that can't be true, obviously....

[bkapeed]

Hi

Which PEO did you go to and was this the only year where you had a tax discrepancy?

Can you shed some more light on your case please

Hi Immigrantshimmigrant,

I applied in Belfast PEO.

Yes its only for 1 tax year and just for 6 months.

Just re-stating the situation here:

Have applied for ILR on 23rd March 2016 and came to know that there was a discrepancy in the amount shown to UKBA and HMRC during the financial year 2010-11

I was self employed for 3 months during that year and have claimed £26,100 as gross profit out of self employment. When my accountant did the tax calculation, he had filed tax only for £15,057 with HMRC. Due to this discrepancy ILR was refused stating that I was deceitful or dishonest with HMRC (322(5)).

To add on,
That was my first Self employment and had very little or no knowledge on Tax calculation. I had given the authority to my accountant to do Tax filling and had trusted him. Only yesterday I came to know that he had not filled for the complete earnings of my self employment

[Immigrantshimmigrant]

Hi

Which PEO did you go to and was this the only year where you had a tax discrepancy?

Can you shed some more light on your case please

Hi Immigrantshimmigrant,

I applied in Belfast PEO.

Yes its only for 1 tax year and just for 6 months.

Just re-stating the situation here:

Have applied for ILR on 23rd March 2016 and came to know that there was a discrepancy in the amount shown to UKBA and HMRC during the financial year 2010-11

I was self employed for 3 months during that year and have claimed £26,100 as gross profit out of self employment. When my accountant did the tax calculation, he had filed tax only for £15,057 with HMRC. Due to this discrepancy ILR was refused stating that I was deceitful or dishonest with HMRC (322(5)).

To add on,
That was my first Self employment and had very little or no knowledge on Tax calculation. I had given the authority to my accountant to do Tax filling and had trusted him. Only yesterday I came to know that he had not filled for the complete earnings of my self employment

Well I am sorry to hear that mate. Unfortunately you have dug yourself into a hole. You will now have to prove that you weren't deceitful to HMRC. When you applied for your visa at the time, you must have sent HO a letter stating how much your income was and how much tax you were supposed to pay on that. I remember accountants providing summaries. If you did then you should have known that what you actually paid was different and hence should have amended at the time!

Any ways you now should see a good lawyer and hope for the best!

[bkapeed]

@immigrantshimmigrant

I consulted few lawyers and they not giving much hope on this.

Admin review is to prove that the case worker refusal is wrong on that day of application with the documents submitted by the applicants.

And I don't have any thing to prove wrong here as what they found out is technically true. so i am slightly thinking of not going for admin review.

I know many of them had come across this situation, so looking for some cases who have handled this successfully.

I have few questions if some one can help me to answer or guide me somewhere to look for ;

1. If i clear all taxes within 4-6 months and then make a fresh application, will they then accept it ? do any of you know any one who have done this and succeeded

2. My current visa expires in April 2018 and my wife (dependent visa) is expiring in one month. will there be any issue for her to get dependent visa till April 2018 ?

Thanks

[Obie]

Admin review is to buy time.

You will have to possibly file JR.

Your accountant must give reasons for the discrepancies.

Either it was deliberately that you mislead UKVI or it was the fault of your accountant.

Your visa was issued on the basis of that earning. If it later changed, then it means you got something to which you were not entitled.

[Casa]

Even if it's the fault of an incompetent accountant, you have the responsibility for signing it off as correct and can't distance yourself from that. Surely you noticed the significant difference between annual earnings of £26100 and £15000?

[Obie]

Well it is only 9,100 . I have seen much worse in the last few months were I am left with no option but to say there is no hope, other than the chartered accountant preparing to lose his licence and become the fall guy.

[Casa]

With all due respect, I'm self employed and would certainly be aware of whether I'd earned £26,100 or £15,057. Actually a difference of £11,043

[Wanderer]

With all due respect, I'm self employed and would certainly be aware of whether I'd earned £26,100 or £15,000.

Me too lol!!

As the business owner when you sign off the accounts you sign them off as true and correct, it's not enough to just sign and bleat 'I didn't know, it's the accountant's fault' later.

[Obie]

Well you are a smart person with attention to details and I applaud that.

However in about 20% of the cases , people are not good with math and the live everything with their accountant.

I have no difficulty in accepting that the majority of cases was deliberate, but there are indeed few genuine cases.

A friend of mine who I have known for many years had similar.

It was during my examination of his documents that I realised he could not have obtained Tier 1 general based on that earning.

He then realised that the accountant had changed it without his knowledge with the hope of getting him to pay less taxes.

It was disgusting . He was fortunate as I was able to spot it before he applied, and remedied it. But if I had not suggested that I have a look, his life would have been destroyed forever.

[Obie]

I am not a business Ower, and I am not sure if I will be as privileged as you two fine people to ever be one. I cannot therefore speak from person experience, but one has to keep an open mind sometimes.

Just like ETS, and CCL, I remember many people were crucified, but it turned out in the case of ETS, that it was the Secretary of State that was engaged in an abuse of power at an unprecedented scale.

[Casa]

Actually, maths isn't my best subject...but what I'm trying to get across is that I'd be well aware of whether I'm earning £1250 or £2167 a month. Simples. A Case Worker may take the same sceptical view.

[Obie]

Actually, maths isn't my best subject...but what I'm trying to get across is that I'd be well aware of whether I'm earning £1250 or £2167 a month. Simples. A Case Worker may take the same sceptical view.

Your views are valid and it will be foolish of me to seek to challenge it.

However my friend is a very honest and trustworthy person, and I will vow with my life, that it was not his fault but the accountant .

[Casa]

Actually, maths isn't my best subject...but what I'm trying to get across is that I'd be well aware of whether I'm earning £1250 or £2167 a month. Simples. A Case Worker may take the same sceptical view.

Your views are valid and it will be foolish of me to seek to challenge it.

However my friend is a very honest and trustworthy person, and I will vow with my life, that it was not his fault but the accountant .

I'm sure he is Obie. I'm simply discussing the case we have here.

[Wanderer]

Running a business isn't about leaving things to others, you need to check everything, trust no-one to do it right, not micro-manage but ask questions if unsure.

At the end of the day, it's your arse on the line, I have an accountant and he's very good, but I still check what he does - I have too or I will pay. Smalls thing you miss obviously, but 50% extra income you don't.....

[Immigrantshimmigrant]

Many people have been caught up because they were doing business for the first time when they applied for their initial tier 1 and hence tendency to leave things to others.

Any ways that said, OP has a tough ask against him because he didn't make any attempt to fix things before he applied. I would suggest he goes for a proper lawyer. Not many who have been trapped by the recent HO checking might have gone through the judicial review process so experience will be limited at this stage!

[honey2008]

If all these are accounting or accountant mistakes then why the equation is always

Tax Declared to HO > Tax given to HMRC

Not a single case of


Tax given to HMRC > Tax Declared to HO.......

[Immigrantshimmigrant]

Honey2008

There will be you cannot say...just that they will be in the successful category if they at all are posting on immigration boards...simple

[honey2008]

All these accounting errors has led to closure of Tier 1 General route.....

[bkapeed]

If all these are accounting or accountant mistakes then why the equation is always

Tax Declared to HO > Tax given to HMRC

Not a single case of


Tax given to HMRC > Tax Declared to HO.......

There are possibility of such cases, it wont come to your notice because HO would have ignored it and accepted the application.

[bkapeed]

To All,

I agree most of your points that it must be the self employed person's responsibility at the end.

But in my case, i was a beginner and had no knowledge of filing tax returns , so i left it to an accountant with all my invoices and bank statements.

from february 2011 i was extremely busy with my external employment and at some point in August 2011 I chased my accountant regarding filing my tax returns and he informed me that its all done. I genuinely don't know that he had showed around just 15000 pounds.

And its just one off instance and that too for just 6 months. I knew that i had to pay tax and i pushed my accountant to do that which shows my honesty.

Its an error for some reason which has happened only once and its not repeated.

Now this has been brought to my notice, my next step would be to pay the tax for left over income irrespective of whether i submit fresh application or not in future.
My intention is always, as long as i stay in UK i should be clear of all discrepancies .

Could some one please advise me good lawyer who can take my case and assist me.

Also is there any one who has gone through this situation and succeeded in fresh application after clearing all taxes.

Thanks

[Pscloud]

@bkapeed

You are wasting time here .... These people who writing that they running business for few years and have no problems in taxes blah blah they are not here to solve you problem ... they will add more misery in your life ...

You wont find anyone on this forum whose second application was successful after first refusal. There is a guy on this forum with username Zullu .... search his post ... he went for second application and got positive outcome ....