Amended company tax returns: please advise

[ilrtier1genral]

Hi All

I am on tier 1 general applying for ILR soon little flashback related to problem is I was a company director when extending my tier 1 stay and submitted an estimated accounts (Nov 2011 to May 2011) to ukba and claimed dividend earnings for the required amount to get points.

The issue is when I actually submitted my annual accounts for ( Nov 2011 to Nov 2012) their was a lot of difference in the corporation tax due to losing some of the contracts and other losses which forced me to close my company and accept a full time professional job when I discussed this with my accountant he said this is routine with business and should not effect my credibility in any way but with recent policy changes in October 2013 where HO clearly says they may cross check the details with other government departments of earnings claimed under previous applications I had a reason to feel anxious that they might not buy my explanation, my queries are

1. How can I amend tax returns for a closed company and pay the remaining Corporation tax? Or

2. Is there any chance to leave the company accounts as it is and pay tax on my dividends, if yes then how?

Or Shall I stop worrying and be prepared with the explanation from myself and accountant about the change in figures and apply for Same day service?

Also trying to contact my accountant and discussing possible ways but they don't understand the issues with immigration specialty with HO it's better to be safe then sorry you can not explain them the real time exceptional senarious cause they only do what it is in their instructions guide and I do not want to take this to appeal stage where a judge can understand what business ups and downs.

Please give your valuable suggestions.

Thanks in advance for reading my post.

Kind regards

Ilr tier1

[Wanderer]

Are you saying you've made a fraudulent submission for your Company Accounts in order to get the visa and not paid the CT due?

[ilrtier1genral]

No certainly not

I am looking for some suggestion not accusations.

Thanks anyway

[UKBALoveStory]

Think from UKBA point of view. A person says (s)he has earned X amount in a year and (s)he qualifies for Tier 1 (G) extension. UKBA accept his claims n approve the extensions. Now on next extension (or ILR) UKBA checks (not for all candidates but for some lucky ones) whatever was presented to them in last extension and finds that there is some discrepancies (some of these might be genuine but UKBA has no way to tell/verify?) so they consider it as a deception (which might not be true as in your case) but a candidate (if caught) has to prove that what ever (s)he has mentioned in the last extension was true.

I know this won't answer your question but just giving you another prospective.

I wish you all the best for your extensions/ILR.

[Wanderer]

No certainly not

I am looking for some suggestion not accusations.

Thanks anyway

In that case I apologise if you thought that, but you need to be 100% transparent and clear, the discrepancy you seem have lends provence to something being errant, and mentally fudging it and 'little flashbacks' that worry you will bite you if you have been less than 100% squeaky clean.

My suggestion is to speak to your accountant, or get a decent one if you don't trust this one and make sure all is in check. Remember it's down to you as MD, not the accountant to get these things correct and legal.

[ilrtier1genral]

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Hi UKBALoveStory,

Thanks for the wishes and clarification.

Yes I do understand the seriousness of the issue that's why I'm looking for expert advice how can I sort this out without any further issues.

Hi Wanderer,

Thanks for the reply and that's the plan.

Kind regards

[fn286]

Dear ilrteir1genral,

I completely understand your situation as I'm facing similar worries. It is mainly because some people fraudulantly got Tier 1 extensions claiming fake earnings as directors and closed their company as soon as visa was granted.

My case is slightly different than yours as I didn't close my company until mid last year. But I wasn't trading since 2012. I started working for another company and never found time for own work. My accountant was stupid he filed incorrect earnings on my corporation tax return which I never checked until now when my ILR is due. I know if I contact my accountant he will straight away opens his mouth for more money. It was his mistake and he was blind. Anyways, fact is even billion pound multi national shows incorrect account to avoid tax so some directors of small companies also do it. And that caused problems for people like us.

I personally don't think that caseworker or Home office should kill us for our past. I'm paying £600 in tax and NI every month through my current employment... clear earnings for UK government to feed british and EU benefit eaters .. I never claimed a penny from councils... why on earth home office will kick me out and lose £600 a month for who knows how many years...and my company would be paying even higher NI every month... easy revenue for UK...

Yes, If I was still a limited company director or self employed then it does make sense to check my past record as that may raise few concerns... self employed people are more rigourously checked... one of my friend's accountant suggested to go with employment route rather self employed as that will be more stressful.

It will be really unfortunate if anyone gets rejected just because of his past. It should be present that matters.

Anyways...I'm still worried. Many people here got ILR and Ho never asked questions from the past... but nobody is giving clear answers and to be honest there are clear answers...every case is different... I request all to share experiences...

Thanks.

[benneviss]

My dear friends ,

The only answer is just do rectify your mistakes. Please do not believe those who advice you to take a chance on the basis that many people had got ILR even though they had a murky past .

You will not find these people after your ILR rejected and you would regret yourself only for saving few bucks.

If you see my earlier posts , you would notice that I am constantly raising awareness and clearing doubts on this tax issue.

I now know few people( after putting my friend's case on this forum) , had been advised by their solicitors to amend their tax returns after their ILR rejected before appeal hearing takes place .

In short , do it before you go for ILR and save your time, money and have peace of mind.

Good Luck

[fn286]

My dear friends ,

The only answer is just do rectify your mistakes. Please do not believe those who advice you to take a chance on the basis that many people had got ILR even though they had a murky past .

You will not find these people after your ILR rejected and you would regret yourself only for saving few bucks.

If you see my earlier posts , you would notice that I am constantly raising awareness and clearing doubts on this tax issue.

I now know few people( after putting my friend's case on this forum) , had been advised by their solicitors to amend their tax returns after their ILR rejected before appeal hearing takes place .

In short , do it before you go for ILR and save your time, money and have peace of mind.

Good Luck

Dear benneviss,

Please can you give us more details what we should do. The company is closed, unfortunately much cannot be done. We cannot ammend the tax return and even Home office cannot check company tax record on real time basis. They have to request and wait till HMRC retrieve data from archives. I've confirmed this with hmrc. If you're stuck in this, clearly your application is deferred. But what you can also do is show SATR (self assessment) to case worker if he creates a scene. My self assessment seems fine for that year and thats my personal income, whereas corporate tax return is a problem for me as it is for Amazon, google, Mcdonalds, etc

And it's too late for me to be honest. But I can assure you I will share my experience even if I'm rejected or deferred. I'm ready to face the judge with similar arugument. losing £600 per month in tax revenue...

Thanks.

[benneviss]

I understand your frustration and have a sympathy as well.

If you have enough time to go for ILR (i.e. more than 8 weeks) , my advice is to write HMRC that you wish to rectify a mistake which you have just realized and send what you want to amend (i.e new figures) . In this case a ball is in HMRC's court . They will dig out your record , amend accordingly and send you out tax bill.

For CW or present UK government it does not make any difference that how much you pay in your tax or NI. The UK government is interested to reduce immigrants .

So do not leave to a chance. If any one ILR rejected on the tax issue , the judge not going to hear you until you clear your dues.

[fn286]

unfortunately I'm gonna take my chances. You don't keep record for past 2 years. My opinion is if CW ask any such questions, coming up with great justification always helps. I haven't seen anyone who was asked for past years 'corporations tax'. just to make myself clear, corporation tax completely different. CW and HO would be interested in personal income, and HMRC record. Corporation tax is nice to have not a must have, and I'm not a director any more. I have seen one case I think where CW asked for corporate tax confirmation letter and that I have. But I won't share full details of tax return as that is my corporate matter not personal unlike self employed where you are sole trader etc. Logic says .. lets say you're a director a limited company with more than one shareholders, sharing corporate tax return of such company will breach the privacy and interest of other shareholders. Similarly, if I'm director of Barclays I don't have to show corporate tax return of the bank for ILR.

I agree with you that this is there last chance to kick me out, but they can only delay my ILR but cannot reject. I'm not EU migrant sue me...

[raj1102]

Hi fn286,

I am in a similar like yours. Could you please confirm whether your ILR application was successful.


Thanks

[geriatrix]

fn286 is on his path to become a British citizen.

That said, I believe a lot has changed since Feb. 2014 in how Home Office now deals with tax discrepancies / irregularities of immigration applicants.
[url-http://www.immigrationboards.com/genera ... 90133.html]Sort out taxes[/url] before applying for settlement.