Tax Question ! Urgent ....ILR

[JaySam]

Hi,

I have declared a income of 51,00 to UKBA last year when I applied for my Tier 1 - General Extension and got approval on same day (Required £50,000). At the time I was working as employee (£29500) + limited company director - dividend voucher (£20500).

I have paid a full corporation tax around £4050 on my limited company profit on 20% basis.

Now the tricky part

At the time I was also in a partnership with a friend to open up a ware house on self-employed basis, but due to some bad business decision (Sub standard good imported,import tax bills and other expenses) I lost around £15000 of my hard earned money on this venture. At the end of the year when I filed my tax return I declared employed income + dividend from company + Losses from Self employed. On these basis my total Income on Self assessment tax return is £38800.

Is this going to effect me in any way in further for Extension or ILR ? (As I fell far below the 50,000 income required at the time)

I always have paid my tax due on time and accordingly what I have declared to home office in past on Initial application and extension application, and have not use deception in any way.


Please advice as your advice will be very helpful.

[JaySam]

100 View & no help !


Please can some give advice and share their experiences.

[oocha]

I would suggest you to pay the tax on the Dividend amount you showed to H.O. They are checking the Tax in most of the cases and specially when you need high earning and you declared Employment+Self employment, then they are more lickely to check that.
You will only be able to explain them your position in court, whatever the points you have in your mind to defend yourself. Then the money you may spend in the process will be much more than the amount you want to save this time.

The amount you are saving is not too much as you have already paid the most of your tax amount but you are taking high risks on small amount.

[smartkhan]

The amount you are saving is not too much as you have already paid the most of your tax amount but you are taking high risks on small amount.

I agree. No amount is bigger than ILR. Don't risk your future for small savings.

[ilrtier1genral]

Hi,

Do you have your company still functional or you closed it?

The reason I am asking is if you still have your company the you go and see your accountant he can send an amend accounts to reflect the one you declared to HO.

I am also going though the same situation and trying to contact my accountant cause wit HO it's better to safe then sorry you can not explain them the real time exceptional senarious cause they only do what it is in the guide and only a judge can understand what business ups and downs.

So good luck and wish me one as well....keep posted.

Kind regards

[JaySam]

Hi guys thank you for your reply

I have paid the full tax on the company dividend that I have drawn at a time, it is actually the lose from my self employment which reflect in my self assessment returns. The company is still functioning and I am drawing dividend from this company.

No Hidding of tax from home office or HMRCs. I Just hide the fact that I was also in a self employment at a time, which I did not need to mention to home office, because of the salary and dividend I was getting enough points. ( I declare salary employment + Company Dividend)

I did see my accountant after your advice and he is saying saying that all my tax's are in order and I don't need to do any thing, as all the taxes are declare correctly. and self employment is totally different matter.

Salary + Dividend (This is what I declare to home office.) - self employment loss (This is what I have not declare to home office) = 38800 (Total Income for Tax Purpose)

Also I will qualify for 10 year long residency ILR by the time my Tier 1 General ILR will due, there for I am worried very much, but God knows what future holds, As with home office you never know when they will change the rules for 10 year long residency.