Question regarding good character requirement

[Alayna]

Hi. I've been directed to this forum from another forum as I have a concern regarding a situation I have found myself in for the good character requirement.

I've tried to make sure I would always meet this requirement, but a stupid blunder of mine may have messed it up. Hopefully someone might have some insight as to whether or not I'm worrying over nothing.

First off, I came to the UK through the spousal visa family scheme and have held ILR since 2020. After receiving ILR, the pandemic hit. I struggled with employment and income (like many people did) and so I decided to apply for the Marriage Tax Allowance to transfer 10% of my tax-free threshold to him. It would only save him £252/year, but it was something then. I continued to have low income for quite some time. So long that I completely forgot about the allowance.

I got a 1 month contract at a new job just before Christmas 2021. This got extended right before expiring for another 3 months....this kept happening into 2022. Work started drying up November 2022 and I was let go Jan 2023. Add this to multiple other things happening including 2 trips to see my family, my grandmother passing away, and other things - and 2022 was insanely chaotic for me. I completely forgot the allowance existed.

The HMRC doesn't automatically take it off or even warn you that you've gone over the eligibility limit. It is stated that you must cancel it if your circumstances change. It was my responsibility and I just forgot to do it until recently. I have been preparing my American tax return for 2022, and to do this I have gone through my HMRC account very closely to gather all the information I need. It was through doing this that I saw that the allowance was still in affect for me .

I called the HMRC the next day and explained the situation. They have now cancelled it - although this won't take affect until the 2024/2025 financial year (this is just how the system works for everyone, it stays in affect for the remainder of the financial year). But I should have done it before the end of 2022/2023. I asked if there was anything that we needed to do retro-actively - did we owe anything? And they said no. (Since my tax threshold was so low, I paid way more than I normally would and essentially I paid what my husband saved. And I will again for 2023/2024.) I asked if I was in any trouble - they said no.

But I am very worried that my honest mistake will be deemed not in good character by the home office if I continue with my citizenship application now. I was hoping to apply before the end of July.

Would anyone have any insight as to whether or not I am blowing this out of proportion and worried over nothing????

[alterhase58]

I think you are worrying about this out of all proportion and overthinking. You have informed HMRC and they are doing what they are doing. The ball is in their court. If they require repayment it will normally be done through your tax code. To be honest I would forget about this, you haven’t committed tax evasion which is a serious offence.

[Alayna]

Should I include an explanation with my application? I've always been advised to be up front about things that might seem off, so as to give them all the info up front so that they do not need to go looking for anything. Do their work for them.

[Amber]

I agree, you’ve not had an intention to evade tax, you made a genuine oversight, have reported it and would be willing to repay any overpayment, I wouldn’t fret about this.