ILR TAX ISSUES

[Babatunde0]

Hi everyone,

Hope you’re all well! It’s almost settlement time for me, which has come up far faster than expected! My BRP expires 10th November, so the aim is to apply in October. I will be gone most of September to visit family in the US, so I’m trying to get some things started now instead of putting it all off until my return.

Right now I have two questions that I hope someone might be able to help with.

Question one:

We will be relying on my husband’s income to meet the financial requirement. Right after my FLR approval, he began working under the construction industry scheme. He is given work through an agency, and a payroll company (separate to the agency) is in charge of his payslips and depositing his pay each week.

As I understand from good ol’ Appendix FM 1.7, CIS income can fall under the cat A or B requirements as long as we can provide the right documentation. If we take this route, it’ll be cat B due to the variable income, so 12 months of bank statements and payslips, a letter from the agency confirming husband works for them, and a letter from the payroll company confirming the payslips (they only issue them digitally so we’ll be printing them all off). I’m assuming some sort of a contract with the agency and some sort of proof of his CIS registration will also be helpful.

My worry, however, is the payslips themselves and how taxes are shown as it's not PAYE. Basically, there’s no separate line for what is contributed to tax and what is contributed to national insurance. It’s just 20% withheld, and it seems to be the standard for how these subcontractors get paid (under the Deduction Rate heading: https://www.gov.uk/what-you-must-do-as- ... rify%20you). Of course, he does a self-assessment tax return each year, and that shows a further breakdown of how much of that 20% goes to tax, how much goes to national insurance, and how much is refunded to him.

Considering that that’s the standard for how CIS subcontractors are paid, and the home office are happy for CIS to fall under cat A or B, then surely this is fine?

Question two:

In regards to his tax returns, last year’s return had to be amended. Frustratingly, the accountancy firm he uses made an error in calculation, resulting in £1800 overpayment from HMRC. We didn’t realise it until this year when comparing the returns and refunds. Even more frustratingly, HMRC took months doing a further review, and even they didn’t pick up on the error! ::)

The accountant amended the return in April, and nothing else has been heard since. Husband has now chased up the accountant to confirm all is well because he's not had correspondence from HMRC asking for the money owed back.

So, will this amendment cause issues with my application? I’m assuming it would be best to confirm the amended return has been accepted by HMRC and the balance is paid. I just worry it’ll look as if we’ve tried to swindle HMRC out of a bigger refund than really owed, even though we’ve picked up the error and had the accountant make the amendment needed.


Any help is appreciated

[zimba]

The question is who is employing him and whether he is on a payroll ?? The company that he is employed under will have to issue the payslips according to the requirements, showing NI or tax contributions, etc. So is he employed or not ?

The tax amendment with HMRC is not relevant to his ILR application.

[Babatunde0]

The question is,will the self assessment amendment have any effect on both ILR if they are depending on the dependent prove of funds to support their application?

[zimba]

The question is,will the self assessment amendment have any effect on both ILR if they are depending on the dependent prove of funds to support their application?

You did not answer my question. Is he employed and on the payroll or not ??
For people on the payroll, their tax amendment issues are not relevant. However for self-employed people, tax amendments may raise concerns about the potentiality of inaccurate (or non-genuine) income declared to qualify for a visa.

[Babatunde0]

He is a dependent on tier 2 visa working as self employed.
The family want to relay on his income for ilr

[CR001]

He is a dependent on tier 2 visa working as self employed.
The family want to relay on his income for ilr

There is no financial requirement for Skilled Worker (tier 2) dependents.

What is your visa category or immigration status?

[Babatunde0]

I am a dependent on healthcare assistant tier 2 working self employed in construction under Cis paid,I discovered my two years 2022/2023 tax return figure was different to what hmrc have on their record.turnover is 25169 while hmrc have 25660 on their record,cis paid by contractors to hmrc is 5256 while accountant put in 5035 on my tax return. i have already amended the return. About to apply for visa extension and ILr soon. I try checking kn this forum people who had same situation of amending tax got their visa extension and ILr rejected. What do you think about dependant visa extension and ILr in the future?

[CR001]

Your income as a dependant visa holder is completely irrelevant.

Only the income of the main skilled Worker visa holders matters and just meet rhe skilled Worker requirements.

Not sure why you are looking at Appendix FM when it has nothing to do with your visa route.

[Babatunde0]

Will the tax amendment of the dependant self employed have nothing to do with visa extension and ILR in the future? Please,i need clear clarification on this?

[CR001]

Will the tax amendment of the dependant self employed have nothing to do with visa extension and ILR in the future? Please,i need clear clarification on this?

No, it won't.

[zimba]

I am a dependent on healthcare assistant tier 2 working self employed in construction under Cis paid,I discovered my two years 2022/2023 tax return figure was different to what hmrc have on their record.turnover is 25169 while hmrc have 25660 on their record,cis paid by contractors to hmrc is 5256 while accountant put in 5035 on my tax return. i have already amended the return. About to apply for visa extension and ILr soon. I try checking kn this forum people who had same situation of amending tax got their visa extension and ILr rejected. What do you think about dependant visa extension and ILr in the future?

It seems you do not understand the historical tax amendment issue and ILR refusal cases. This issue was only relevant to the old Tier 1 General applicants, a route that has long been closed. The issue was that some old Tier 1 General applicants were being refused ILR as many allegedly declared inflated income figures on their tax returns to meet the requirement for Tier 1 General visa extension. Then they amended their tax returns after getting their visa, to avoid paying taxes for those falsely inflated declared figures. Many got caught during the ILR stage and refused. So the issue wasn't the tax amendment itself but the allegedly fraudulent purpose for those amendments, in order to secure a visa. In general, tax amendments or adjustments are common (e.g via PAYE tax codes) and lawful and have no effect on the outcome of a visa or ILR application

You mentioned Appendix FM above which is for people under the family route, NOT for worker dependants. As you have been advised your income and employment or tax amendments are totally irrelevant to your ILR application. The dependent routes have NO employment or income requirements at all.

[Babatunde0]

Thank you so much for the clarification. I understand now.
I was thinking it general rules for all visa categories to refuse visa extensions or ILR applications. I am a dependent on work visa but working self employed in construction my tax are been paid to hmrc via CIs i am aware i need to make tax returns at the end of the tax year which i did but the figures i disclosed was little bit under declared even though the tax are paid to hmrc already. I am scared it will affect me as a dependent later on. I appreciate you all. Thank you

[zimba]

Thank you so much for the clarification. I understand now.
I was thinking it general rules for all visa categories to refuse visa extensions or ILR applications. I am a dependent on work visa but working self employed in construction my tax are been paid to hmrc via CIs i am aware i need to make tax returns at the end of the tax year which i did but the figures i disclosed was little bit under declared even though the tax are paid to hmrc already. I am scared it will affect me as a dependent later on. I appreciate you all. Thank you

It will have no adverse effects on you at all. No need to worry at all