Self employed tax remittance

[gEEDAY]

Hello,

I am due to apply for extension of my tier 1 visa by 1week in January 2012, I am self employed but i cannot pay my tax until after april 5th 2013.

Is there any document i need to show to prove this even though i cannot pay my tax until jan april 2013.

Preferably, is there a letter format i can use to explain this when applying?


Thank you for your help.

[John]

Not sure I understand. Why can't you pay your tax now?

When did you start your self-employment? What year's tax are you talking about?

[gEEDAY]

Ok. I registerd my self employed in feb 2012!. My current visa expires in jan 2013, what have been told is 'to apply for my renewal in jan 2013, i can only remit tax for the period feb - april 5th 2012.
Have also been told that to pay the tax for the period april 6th 2012 - april 5th 2013, I have to wait til after april 2013. So which means i cant pay it before my application i. Jan.
i just wanted to double check this is correct and what formar do i use in providing this to the visa office.
Thanks john

[John]

You are not required to pay your tax before it is actually due. But you need to ensure that the 2011-2012 tax is paid by 31.01.13, and indeed paid before the visa application in January 2013.

[gEEDAY]

Ok...thank you John but is there a known format i am expected to use to present this?

Can I also ask another question with this scenario please?

Take for example,
I need 45k to renew my visa, and I am both salaried and self employed.
If I have earned 20k in salary for the period of 12 months leaving an outstanding of 25k that should come from my self employed to make up the 45k. Lets also assume I have earned this remaining 25k from self employed and my running expenses is at 10k

Question:
1. Am I expected to pay the full tax on the 25k from self employed or
2. Am I expected to pay the tax after deducting my 10k running expenses? (i.e, pay tax on 15k only)
3. If I pay tax on 15k only, would they still consider that I earned a total of 45k before tax or would they consider that I have earned on 35k?




I know this sounds complicated but please help as much as you can.

[John]

Lets also assume I have earned this remaining 25k from self employed and my running expenses is at 10k

Simple accounting, indeed simple arithmetic, says that you have made £15000 profit.

Add that £15000 profit from self-employment to the £20000 salary means you have income of £35000, which is insufficient for your visa renewal purpose.

If you make £15000 profit from your self-employment you of course pay tax on that £15000 profit (subject to usual adjustments for depreciation and capital allowances).

[[iD]]

25K would be your turnover not profit. 15K would be your profit in that case.
Just out of interest, how do you think you'd need 45K to claim required earning?

[gEEDAY]

plus, is there any format i can use to present the fact that i have earned the turnover but havent paid my tax because its not april 2013 yet?

Am i supposed to forcast the ta i intend to pay in april 2013?

[John]

You have not "earned the turnover"! You earn the net profit.

As regards the tax, again you are not due pay the tax until a later date. Given that visa applications are decided on pre-tax income, it is not necessary for you to estimate the tax payable.

[sh1981]

Hello,

I am due to apply for extension of my tier 1 visa by 1week in January 2012, I am self employed but i cannot pay my tax until after april 5th 2013.

Is there any document i need to show to prove this even though i cannot pay my tax until jan april 2013.

Preferably, is there a letter format i can use to explain this when applying?


Thank you for your help.

i attached HMRC self assessment notice