Question regarding underpayment of tax

[sheronline]

Hello friends,

(Please let me know the links, if this question has already been asked here before.)

I am going to apply for Tier 1 general visa and I have some questions regarding my earnings. I have earnings from 2 jobs, one is full time (FT) and another is part time job (PT).

I earned about £18500 @ FT, £2650 @ PT job, so total of 18500+2650=21150 in past 12 months.

The problem is that due to some mistake, my employer at PT job thought its my only job and wasn't deducting much tax (well nearly nil) because I wasn't earning more than £6K as per his records. [this is a bit of long story why this happened] while I was supposed to be paying tax at Basic Rate at this part time job. I, however, was paying correct tax etc at my full time job.
So I have not paid tax for about £3500 earnings at my part time job, it includes earnings in previous financial year as well. I actually never wanted to do this. This happened because of employment overlapping and as it was my first year of employment (as I was an international student before and worked on part time basis only) I was a bit of noobe in calculating tax etc.

Now that I have realised my mistake, I spoke to someone at HM Revenue and they have noted it and now informed me that they will collect the underpaid tax in monthly installments from my full time job by putting me under lower tax code.


I am going to send Bank statements + Payslips for the earnings at my full time job. And Payslips + letter from the accountant at my part time job. This letter from accountant shows my net and gross earnings both which are nearly same.

My tax is being sorted out but can it affect my visa application for Tier 1 General visa?? if yes, what steps I should take to avoid it? What other things I should be careful of?

Please let me know if you need any other details from me.

Thanks for your answes.

[yasa]

Hello friends,

(Please let me know the links, if this question has already been asked here before.)

I am going to apply for Tier 1 general visa and I have some questions regarding my earnings. I have earnings from 2 jobs, one is full time (FT) and another is part time job (PT).

I earned about £18500 @ FT, £2650 @ PT job, so total of 18500+2650=21150 in past 12 months.

The problem is that due to some mistake, my employer at PT job thought its my only job and wasn't deducting much tax (well nearly nil) because I wasn't earning more than £6K as per his records. [this is a bit of long story why this happened] while I was supposed to be paying tax at Basic Rate at this part time job. I, however, was paying correct tax etc at my full time job.
So I have not paid tax for about £3500 earnings at my part time job, it includes earnings in previous financial year as well. I actually never wanted to do this. This happened because of employment overlapping and as it was my first year of employment (as I was an international student before and worked on part time basis only) I was a bit of noobe in calculating tax etc.

Now that I have realised my mistake, I spoke to someone at HM Revenue and they have noted it and now informed me that they will collect the underpaid tax in monthly installments from my full time job by putting me under lower tax code.


I am going to send Bank statements + Payslips for the earnings at my full time job. And Payslips + letter from the accountant at my part time job. This letter from accountant shows my net and gross earnings both which are nearly same.

My tax is being sorted out but can it affect my visa application for Tier 1 General visa?? if yes, what steps I should take to avoid it? What other things I should be careful of?

Please let me know if you need any other details from me.

Thanks for your answes.

As long as u have informed HMRC it won't be a problem cuz one of my friend was in the similar situation and got the visa.

[sheronline]

As long as u have informed HMRC it won't be a problem cuz one of my friend was in the similar situation and got the visa.

Thanks Yasa, thats what I wanted to hear!
Do you have any idea, if/how I should mention about this underpayment and its being sorted out in my application??

Regards,
S

[aruni4470]

Do you have any idea, if/how I should mention about this underpayment and its being sorted out in my application??

Yes, to be on the safer side.

Also try to include any communication with HM Revenue in this regard to your application.

All the best.

[sheronline]

Yes, to be on the safer side.

Also try to include any communication with HM Revenue in this regard to your application.

All the best.

Hi aruni4470,

Thanks for your reply. Yes, I'll include the communication. I was just wondering how to be clever about it, and write about this matter to present it to assessing officer so that it doesn't sound very negative? any ideas/sample phrases/sample text .. sorry I know asking for a lot?

Regards,
S

[aruni4470]

Yes, to be on the safer side.

Also try to include any communication with HM Revenue in this regard to your application.

All the best.

Hi aruni4470,

Thanks for your reply. Yes, I'll include the communication. I was just wondering how to be clever about it, and write about this matter to present it to assessing officer so that it doesn't sound very negative? any ideas/sample phrases/sample text .. sorry I know asking for a lot?

Regards,
S

You could just explain that it was a genuine mistake and as soon as you realised that there was a mistake you are making your genuine efforts to get it rectified. Anyway you said you will be including the communication with HM revenue so, the case worker would not hopefully doubt it. All the best.

[sheronline]

You could just explain that it was a genuine mistake and as soon as you realised that there was a mistake you are making your genuine efforts to get it rectified. Anyway you said you will be including the communication with HM revenue so, the case worker would not hopefully doubt it. All the best.

Thank you.

[email257525]

Very informatice thread

Anyway, i learnt from this forum some one took child benifit while being on Tier 1 g, then on the time of extention realised he has committed a mistake, he paid back all the benefit, then attach a letter from authorities that he has paid whatever he took plus he enclosed a letter to HO explaining this all and got the visa.

So to be on safe side, may be you can do the same, or definitely atleast attach some thing from HMRC that you have paid or paying in installments.

[Anio]

This is useful to know. I have been paying BR tax on my 2nd job and only 2 weeks ago started paying tax on 647L with no tax deductions at all. I suppose i should contact them, but what would be the best way? By phone or email?

I also wouldn't want it to reflect on my 1st job as obviously my employer doesn't know i have a 2nd one. Please can someone throw more light on this process?

Thanks.

[sheronline]

This is useful to know. I have been paying BR tax on my 2nd job and only 2 weeks ago started paying tax on 647L with no tax deductions at all. I suppose i should contact them, but what would be the best way? By phone or email?

Thanks.

647L is the new, ordinary tax code as from 6th April 2009.

The Personal Allowance, the amount that you can earn without paying tax, is £6,475.

So if you are earning more than £6,475 (and less than £37,400) you pay tax @ 20%. So at your primary job, you could have 647L code and BR at your other job. You can't have 647L at both of your jobs.

To sort this out you can try contacting your company accounts manager or you could speak to someone at HMRC on phone or you could go to an HMRC enquiry office and book an appointment and they can sort it out. Enquiry offices do have phone lines and I think they are free to use from there (but not very sure). I haven't tried email though.

I also wouldn't want it to reflect on my 1st job as obviously my employer doesn't know i have a 2nd one. Please can someone throw more light on this process?

If you have some underpaid tax, and if you have made a contact to HMRC to sort it out, they can send some notifications to your primary employer to change your tax code to a lower tax code.


Hope it helps.

[yasa]

This is useful to know. I have been paying BR tax on my 2nd job and only 2 weeks ago started paying tax on 647L with no tax deductions at all. I suppose i should contact them, but what would be the best way? By phone or email?

I also wouldn't want it to reflect on my 1st job as obviously my employer doesn't know i have a 2nd one. Please can someone throw more light on this process?

Thanks.

Phone HMRC...

[Anio]

Thanks, I'll call them asap.

[sheronline]

Hello chaps!!

I've just received my passport back with 3 years Tier 1 visa. Happy days.
Thanks for your help.

Regards,
sheronline