Tax payment for self employment for Tier1Visa and ILR Applic

[NRC]

Dear All,

I have a full time employment and a self employment which i showed to HO for my Tier 1 initial application and also during Tier 1 extension in November 2012. During my extension of Tier1 visa HO did not request for any tax return proofs for my self employment earnings i showed during my initial application.

My question now is after the Tier1 extension in November 2012, i wanted to improve my self employed work and invested in various CPD programs and research activities, this increased my expenditure. Thus I did my tax return for the earnings minus my expenditure, so i payed tax for the earnings which were lower than what i showed during my visa extension. Will this impact my application for ILR in 2015.

Your help with my query will be very helpful, if you have any questions on my query please let me know. Thank you

Kind Regards,
NRC.

[AUHS]

Get all your Discrepancies sorted man.You will face problems if your Digits to UKBA and HMRC are not same.

UKBA is conducting regular cross checks with HMRC to find out ...........

I know personally 3 people who are refused under paragraph 320/321 (Deception) because of their different digit provided to UKBA and HMRC.

Now they are in Appeal and JR process.Which is lengthy ,stressful ,Long and full of complications process with no guarantee of Success.

[NRC]

Thanks AUHS, much appreciated for your reply.

So you mean we cannot show expenses at the end of the financial year? and pay tax for all the earnings. Thank you again.

Kind Regards,
NRC

[AUHS]

You can show your expenses but make sure after deducting the expenses ,your net profit figures are same as you told UKBA.

Even if your earnings fall in 2 years.Your net profit for both years after deducting all expenses should be same as you claimed in your Visa application.

And also end of the day UKBA awards points only on net profits and not gross before detecting expenses.

[statician]

see the similar case of refusal because of discrepancies in tax

http://www.immigrationboards.com/viewtopic.php?t=151779

[MACY]

One question, If our income is up to the requirement at the time of application and we pay tax accordingly to hmrc but the following year our income decreases in business and its less than what is required does it also affect the ILR? for example i got extension on the basis of income earned in 2011 and i pay the tax accordingly but in the following year 2013 income decreases, and in the year of ILR you fulfill the required threshold does it affect in anyway? Please reply thanks

[AUHS]

One question, If our income is up to the requirement at the time of application and we pay tax accordingly to hmrc but the following year our income decreases in business and its less than what is required does it also affect the ILR? for example i got extension on the basis of income earned in 2011 and i pay the tax accordingly but in the following year 2013 income decreases, and in the year of ILR you fulfill the required threshold does it affect in anyway? Please reply thanks

I think you will be ok.

[created4luv]

you need to sort out the tax, I think you are meant to declare your full income to hmrc and then deduct your expenses and pay tax on the net profit. If your financial year is not in line with the usual april to april tax year then your profit may drop if for instance your tax year runs from january to december for example, but your income must still tally because you would have submitted bank statements to show the income earned. Home office are not concerned with tax paid if the tax year runs differently from the usual april to april that is an hmrc issue but home office will check income declared is in line with what you showed them in your application. Speak to an accountant to explain this further to you as it is quite confusing when you try to make sense of it yourself.

[snowball001]

Get all your Discrepancies sorted man.You will face problems if your Digits to UKBA and HMRC are not same.

UKBA is conducting regular cross checks with HMRC to find out ...........

I know personally 3 people who are refused under paragraph 320/321 (Deception) because of their different digit provided to UKBA and HMRC.

Now they are in Appeal and JR process.Which is lengthy ,stressful ,Long and full of complications process with no guarantee of Success.

The tax we pay is based on income of the financial year, normally April to April, while the period during which we claim income could be any 12 months, e.g. Jan to Dec. Since business has highs and lows, these 2 income numbers are unlikely to be the same. My opinion is if there is unreasonable difference and unusual pattern(such as claiming huge expense soon after visa granted) then there will be a problem.

[raju4u]

I first got my Tier1 Visa in 2011 and income required was 35k, I sent my tax returns and paid the tax accordingly which was over 7k, The following year i could not keep up with the business i had burglaries one after another in my Store. I made a loss in business.

In 2013 i got my extension and i will pay the tax accordingly which is over 7k again in January 2014.

My question is to qualify for the ILR do i have to keep up the 35k of income in following year as well? Means do i have to keep up the income threshold throughout the 5 years? Or i only have to keep the income level and pay taxes on the tax returns i sent to HO? I am just confused really because if i have to pay 5 years of tax throughout then i will better go back home rather than spending more time here work 7 days t keep up the income and pay everything in taxes. thanks in adv

[Julie_09]

Taxation must be paid on time.