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OK I'll say it - did you deliberately over declare income for T1G purposes and then only paid tax on real income to HMRC?gsr3072 wrote:Hi,
My accountant says it is OK not to declare the personal tax for the year 2010-11 because it is only £5000 and it is below the the threshold. Hence there is blank in the employment history obtained from HMRC for the year 2010-11 and for rest of the years no problem.
My accountant also indicated that the £5000 pay information is included in the Self-Assessment filed for 2010/11 and also in the corporation tax filed for year 2011.
Also, My company formed in last week of Dec 2010 and it is only three months of duration between formation of my company (last week of Dec 2010) and the personal tax due date 06-APR-2011 and I have registered for my PAYE in June 2011.
I am planning to go for ILR on 30 Mar 2016.
1) Will it create any problem?
2) If the CW considers for 5 years of history then it will be from 30-MAR-2016 to 30-MAR-2011 so in that case will they still consider the tax information for 2010-11?
3) Meanwhile I am also planning to call HMRC (0300 200 3300) to find whether it is OK, not to declare personal tax if it is below threshold?
4) Also, I am planning to take a letter in writing from my accountant so that I can show that to CW incase if there is any problem
Thanks,
ILR Aspirant
Casa wrote:We have no tax specialists active on the forum able to give you advice and any advice given cannot be validated as correct. Moderators suggest that you search for a tax forum or seek other professional advice if you are unable to rely on your accountant.
As I have been shouting on many tax discrepancy threads! I say againgsr3072 wrote:Hi Gurus,
I am self-employed for past 5 years.
In my initial Tier1 extension:
1) I am a 50% share holder of the company
2) I shown an gross income of 48005.56 between 20-Apr-2011 to 18-Apr-2012
3) which consists of gross salary 6450 and
4) gross dividends 4155.56 (net dividend 37,400)
5) As per rules in place before Apr 2010, I get maximum earning points of 45 for earning above 40,000
In the self-Assessment period for 2011/12 the salary 6450 reflected correctly however the net dividends reflected incorrectly which is 31,200 instead of 37,400 with a difference of 6,200 and in SA 2012/13 it is zero.
I realized that by mistake I shown excess income of 6,200 to HO during my initial Tier1 extension and actually these dividends belongs to my wife who is also the other 50% share holder of the company and infact the amount 31,200 reflected in SA 2011/12 is correct.
Also, even reducing the net dividends by 6,200 I still get 45 points for earning so I am still above the threshold income which means I still qualify for the initial Tier1 extension.
Since it is the first year of my company formation, I have no good knowledge of the dividend distribution I just followed what my accountant said while providing accountant letter.
So, please help me how to proceed with this problem to apply for ILR? ( I have Tier1 visa till Jun 2017 )
1) Do I need to take amended letter from Accountant, Personal bank statements, pay slips, dividend vouchers (as if reapplying for Tier1 extension again) and proving that even with 6200 of less dividends I still have enough earning to qualify for my earlier Tier1 extension?
Thank you
So your SA is correct however records in HO are not. You dont need to confuse cw with all this information, just go on PSC and keep covering letter in hand if cw come back for this explanation hand him covering letter than. Submitting docs not related to current application is not wise.gsr3072 wrote:@argus7
I cannot change anything at HMRC because the declared amount of 31200 for SA1022/12 is correct as per my 50% shareholding, the problem is by mistake I have over declared 6200 net dividends (which I don't even need to get enough points) to HO during my initial Tier1 extension which actually belongs to the other share holder of my company.
Even after reducing my income by 6200 I still qualify for the initial Tier1 extension. So the only way is to tell the HO when I attend for ILR that the excess income of 6200 does not belongs to me and even then I still qualify.
So, how to prove it. What kind of documentation I need to take ?
Thank you