ILR - Tax Discussions -

[akan]

Hi Everyone,

I received emails & PM and have seen lots of posts related to tax being underpaid or split between two tax year & people not sure how UKBA will consider the calculations & tax amendments etc etc

The first and most important thing is to declare your tax correctly, so if you or your accountant miscalculated the tax of any previous years just do correction and pay it or arrange a payment plan with HMRC before going for an ILR application.

In recent cases that I dealt UKBA will check your tax returns you filed during initial and extension application, so keep your books in order.

Some people were working as an employee of Ltd company and company later dissolved without paying any paye to HMRC, in those cases it will be tough to justify the legality of employment. You must have any emails, employment letter from the company to justify your employment incase case worker as for it.

I have opened this topic so everyone can ask and share information rather roaming in dark circles. Dont be ashamed of asking questions because at the end of the day rather risking your ILR just be open and ask questions & suggestions.

[mnaeem126]

I think splitting the tax between two financial years should not be a problem. Even HMRC says if your profit is split between two tax years then you should pay tax in two financial years. If anyone has got approval for ILR with split tax might help here by his/her input regarding it. My friend is going to apply for ILR with split tax at the end of this month. It would really helpful for him if the valued members of this forum guide him, if he is doing right.

[ilruk2016]

Hi, It will be a great help which you are lending and i have got a couple of questions about the tax.

My scenario is, Am on tier1 G and due for ILR(2+3) in May 2016. In my first extension I have claimed both my employment + self employment. In my second extension the scenario is pretty much the same. I have recently requested SA302 just to cross check whether the records are the same as what I think, but there is a slight difference with information what i have got with HMRC. ie the employment income which I claimed with HMRC is lesser than the income I claimed with Home Office. This difference is almost by £1000.00, However my self employment income is the correct amount. in my case as i need to show 35k overall and I claimed 39k in my first extension, Does it really matters as i have reached the threshold & all my employment is done by giving my NINO. I have changed quite a few jobs (nearly 4) in that year and i think that might be the reason for data inconsistency.

My Second question is about the self employment income where they have fallen in two financial years and I have filed them accordingly to which obviously does not show them in one year for Home Office. Is that going to be an issue. Please advice me accordingly and your suggestion is much appreciated.

[muraxza]

Hi experts

After going through from different tax discussion i am going to amend my tax returns which is 10/11 tax return now i wondering if i can still amend it first and second is somebody told me if HMRC still amend it they wont update the figure on a relevant tax year but they would collect the money. Is this true.???

Regards

[khan82]

Splitting the employment in two tax years is no problem. I have done it twice for the purpouse of tiet 1 ext and ilr. Tax year normally is May - April. I would normally draw 27000 dividend in a tax year and all my tax returns show more or less same amount. I recently obtained ILR by claiming 33000 as dividend. 25k in 2014 - 2015 tax year and 8k in 2015 -2016 tax year. Please note that return for 2014 - 2015 is not filed yet.
I had my extension in 2012 in which i had claimed 30k dividend. Again this was split in two tax years and none of my tax returns show 30k dividend in a single tax year.
I think there are a lot of myths about what HO do and what they dont do. People who have genuine employment, genuine income and who have paid all taxes need not worry at all. Immigration and tax are two different worlds and work differently. I believe HO just look for authentic evidence as they are not accountants or financial servicemen.

[akan]

Hi experts

After going through from different tax discussion i am going to amend my tax returns which is 10/11 tax return now i wondering if i can still amend it first and second is somebody told me if HMRC still amend it they wont update the figure on a relevant tax year but they would collect the money. Is this true.???

Regards

I have checked with HMRC and SA302 will be updated once amendment is done. However that's not concrete because in some cases HMRC ask for full payment before updating SA302.

Its better to put everything in right order rather leaving it to last minute.

[yash84]

Hi experts

After going through from different tax discussion i am going to amend my tax returns which is 10/11 tax return now i wondering if i can still amend it first and second is somebody told me if HMRC still amend it they wont update the figure on a relevant tax year but they would collect the money. Is this true.???

Regards

I have checked with HMRC and SA302 will be updated once amendment is done. However that's not concrete because in some cases HMRC ask for full payment before updating SA302.

Its better to put everything in right order rather leaving it to last minute.

on which contact number did you check with HMRC

[akan]

Hi experts

After going through from different tax discussion i am going to amend my tax returns which is 10/11 tax return now i wondering if i can still amend it first and second is somebody told me if HMRC still amend it they wont update the figure on a relevant tax year but they would collect the money. Is this true.???

Regards

I have checked with HMRC and SA302 will be updated once amendment is done. However that's not concrete because in some cases HMRC ask for full payment before updating SA302.

Its better to put everything in right order rather leaving it to last minute.

on which contact number did you check with HMRC

0300 200 3310

[wwe1983]

Hi All,

I have a question regarding self employment net income,
-My net profit matches what I provided to Home Office and HMRC at my initial grant back in 2010/11.
However net profit and taxable net profit is different as I used equipment allowance. so in summary Net profit is 10,000 (shown to Homeoffice and HMRC) and net taxable profit is 7000 as allowance of 3000 was used.
would that be a problem if HO checks that net profit is 10k and net taxable profit is 7000? has any one used tax allowance for their visa or is it just me? ie does HO expect net profit and net taxable profit to be the same?

Thanks

[never]

Hi All,

I have a question regarding self employment net income,
-My net profit matches what I provided to Home Office and HMRC at my initial grant back in 2010/11.
However net profit and taxable net profit is different as I used equipment allowance. so in summary Net profit is 10,000 (shown to Homeoffice and HMRC) and net taxable profit is 7000 as allowance of 3000 was used.
would that be a problem if HO checks that net profit is 10k and net taxable profit is 7000? has any one used tax allowance for their visa or is it just me? ie does HO expect net profit and net taxable profit to be the same?

Thanks

hi

i have done same with my extension


i thinks so there is nothing to worry about on this


because as HO said the net profit from last 12 months out of 15 months

even you declare full financial still we use our free allowance as well like you declare 20k of full financial and out of 20k suppose 10k is free allowance so we pay only tax on rest 10k its not possible we pay tax on full 20k
i am not sure but i think so its correct might be any senior member know better then me


because my accountant have done the same thing which i have explain you


my last extension i select my 11 months from last financial year and one month from next financial years so i pay less tax but the account which i have submit to the HO is the exact same

awaiting for senior member response as well

[wwe1983]

Hi All,

I have a question regarding self employment net income,
-My net profit matches what I provided to Home Office and HMRC at my initial grant back in 2010/11.
However net profit and taxable net profit is different as I used equipment allowance. so in summary Net profit is 10,000 (shown to Homeoffice and HMRC) and net taxable profit is 7000 as allowance of 3000 was used.
would that be a problem if HO checks that net profit is 10k and net taxable profit is 7000? has any one used tax allowance for their visa or is it just me? ie does HO expect net profit and net taxable profit to be the same?

Thanks

hi

i have done same with my extension


i thinks so there is nothing to worry about on this


because as HO said the net profit from last 12 months out of 15 months

even you declare full financial still we use our free allowance as well like you declare 20k of full financial and out of 20k suppose 10k is free allowance so we pay only tax on rest 10k its not possible we pay tax on full 20k
i am not sure but i think so its correct might be any senior member know better then me


because my accountant have done the same thing which i have explain you


my last extension i select my 11 months from last financial year and one month from next financial years so i pay less tax but the account which i have submit to the HO is the exact same

awaiting for senior member response as well

Thanks, another problem is that SA302 mentions only the taxable net profit which doesn't match with the net profit in that case (submitted to HO at initial grant). Luckily HMRC can send you a copy of tax return forms which should have all the details (net profit declared and taxable profit declared), but again the last thing we want to do is to confuse a case worker with this extra paperwork checks.

Saying that, my extension and ilr(hopefully) will be on employment only, so do people here suggest that should I submit this extra paperwork(Tax returns copy, accountant certificate, sa302) regarding my first grant in 2011 or just stick with the last 12 payslips and don't give any extra paperwork regarding my first grant back in 2011?

Admins any thoughts or suggestions?

Thanks

[jonbca]

I have a question about salary sacrifice.

I'm in a salary sacrifice scheme for pension contributions (i.e. my entire salary is shown on my payslip as a "top line" credit, then there is a salary sacrifice deduction before tax is paid). My P60 for the year shows only my pay after the salary sacrifice amount has been taken off.

If they check HMRC records, will they see my pre-salary-sacrifice amount or post? Will this cause me a problem?

[akan]

I think it should be Pre , because thats your salary per annum.

[tomanuel2015]

Hi there,

I am a new member on this forum. My Tier 1 General 2nd extension visa runs out in 13 October. My accountant recently (16 June - recorded delivery) wrote to the HMRC to rectify my undisclosed tax return for tax years 2011 and 2012 as self employed.

My question is how long does it take HMRC to respond and should they fail to respond before my visa runs out what can I do?
Was hoping to make my ILR application via PEO last week in September.

Your sincere advise would be most appreciated.

[akan]

Hi there,

I am a new member on this forum. My Tier 1 General 2nd extension visa runs out in 13 October. My accountant recently (16 June - recorded delivery) wrote to the HMRC to rectify my undisclosed tax return for tax years 2011 and 2012 as self employed.

My question is how long does it take HMRC to respond and should they fail to respond before my visa runs out what can I do?
Was hoping to make my ILR application via PEO last week in September.

Your sincere advise would be most appreciated.

10-12 weeks . Also depends what the amount is.

Please state your figures for more help and advice.

[argus7]

I have seen cases where amendments for 2011/12 since its past due date way back now can take 3-6 months, if its a minor correction that is. For tax years 2012/13 it can take between 9 -12 weeks ( 3 months). For tax years 2013/14 amendment is possible till 31st Jan 2016.


For major amendments HMRC wil investigate first and penalise heavily for reasons.

I guess most of people having issues is tax years 2011/12 and 2012/13 when extensions were at peak and people didn't declare correct tax and were completely ignorant about, and 2013 Oct home office deciding to close down Tier 1 due to extensive abuse by SE income and fraudulent companies evading taxes.

[tomanuel2015]

10-12 weeks . Also depends what the amount is.

Please state your figures for more help and advice.

Hi Akan, thanks for your response. For tax year 2011 the amount yet to be disclosed is £2K and in 2012 it's £7,300 respectively.

Any suggestion please. I am really keen on sorting this out before my ilr application.

[akan]

10-12 weeks . Also depends what the amount is.

Please state your figures for more help and advice.

Hi Akan, thanks for your response. For tax year 2011 the amount yet to be disclosed is £2K and in 2012 it's £7,300 respectively.

Any suggestion please. I am really keen on sorting this out before my ilr application.

Pm me your number i will explain you

[tomanuel2015]

10-12 weeks . Also depends what the amount is.

Please state your figures for more help and advice.

Hi Akan, thanks for your response. For tax year 2011 the amount yet to be disclosed is £2K and in 2012 it's £7,300 respectively.

Any suggestion please. I am really keen on sorting this out before my ilr application.

Pm me your number i will explain you

Unfortunately Akan, I am unable to PM as requested.

Since I am a new member on this forum. What can I do please?

[akan]

[Moderator edit]

akan, do not disclose email id on a public forum. Use PM for such information sharing.

[UKkumar]

Dear Friends,

I am planning to apply for ILR but before i want to make sure i have paid all taxes to HMRC.

When I was in dependent visa I work as contractor and I open LTD company, but after 3.5 month (09/2013-12/2013) I started closing my LTD company(it took 6 month to dissolve my ltd company for my accountant), I closed because I change my visa to Tier2.

Now my question is do I have to pay any personal tax or NI for this 3.5 month period earning? I already paid corporation tax to HMRC.

Following is LTD company account details.

Turnover 9,280
Administrative expenses 3,688
Profit on ordinary activities before taxation (9,280-3,688) = 5,592
Tax on profit on ordinary activities corporation tax 1,118
Profit for the period (Dividends) (5,592-1,118) = 4,474

A part from this 3.5 month LTD company in 2013-2014 financial year I was also working as permanent staff.

I appreciate your view.

[aliq09]

Hi ,

The first question i will be asking to you and your accountant : Have the Ltd company dissolved as per Company House and HMRC rules. If your answer is YES than nothing to worry about . From your post , i am getting the idea that things have not been closed properly . Kindly contact some good solicitor ... Now few words as per topic ILR - Tax \discussion

IMO : Once you go to HO /PEO for extension ( previous years) and for new application now ( ILR) , you present some financial papers to HO ( Payslips & Employer letter Bank Statement ) or ( Accountant letter , Salary , Dividend and statement etc) . What does this mean : You are showing to HO that this is MY INCOME ( in simple English) and all the previous work has been done ( expense , tax sorted etc). You show HO a certain period in which you are showing them the income earned . Now here is the equation and you have to decide on which side you belong currently

Equation :

April to April ( Tax Year ) Income £ 10,000 ( TO HO ) = Income £10,000 ( TO HMRC ) RESULT : GREEN
In between ( May to March ) Income £10,000 ( TO HO) = Income £ 11000 ( TO HMRC ) RESULT : GREEN ( Plz note you have to show full year income to HMRC for tax purpose . If suppose HO will see lesser than £ 10,000 income ( May to March ) shown to HMRC results will be RED. In short any thing EQUAL TO and GREATER THAN is fine .. IMHO .. You can say company make loss afterwards ( especially the case for taking earlier Dividends ) but i will stick to my point : what you have shown to HO is your income after taking in account all the expense and loss at that particular month. You can challenge but as per current environment HO will refuse your application ( IMHO)

Year split : Make sure for 2 years , your SA 302 = to income show to HO

I have just narrated a simple idea for a very complex topic but in a nut shell what income you have shown to HO in your previous application much be equal to or greater than the income you are showing to HMRC and any thing which is less is RED ALERT. Don't make any assumptions here ( unless you have been advised by professional ) and make YOUR BOOKS update.

Many Thanks

[aliq09]

A good Idea::: I will request members to post " the Outcome" of application with Tax issues rather than having just ideas and suggestion . I have seen people going in trouble with lesser tax and with successful application with no tax issues ( paid equal or greater than tax to HMRC) . Members please comment further ...

Thanks

[never]

Hi ,

The first question i will be asking to you and your accountant : Have the Ltd company dissolved as per Company House and HMRC rules. If your answer is YES than nothing to worry about . From your post , i am getting the idea that things have not been closed properly . Kindly contact some good solicitor ... Now few words as per topic ILR - Tax \discussion

IMO : Once you go to HO /PEO for extension ( previous years) and for new application now ( ILR) , you present some financial papers to HO ( Payslips & Employer letter Bank Statement ) or ( Accountant letter , Salary , Dividend and statement etc) . What does this mean : You are showing to HO that this is MY INCOME ( in simple English) and all the previous work has been done ( expense , tax sorted etc). You show HO a certain period in which you are showing them the income earned . Now here is the equation and you have to decide on which side you belong currently

Equation :

April to April ( Tax Year ) Income £ 10,000 ( TO HO ) = Income £10,000 ( TO HMRC ) RESULT : GREEN
In between ( May to March ) Income £10,000 ( TO HO) = Income £ 11000 ( TO HMRC ) RESULT : GREEN ( Plz note you have to show full year income to HMRC for tax purpose . If suppose HO will see lesser than £ 10,000 income ( May to March ) shown to HMRC results will be RED. In short any thing EQUAL TO and GREATER THAN is fine .. IMHO .. You can say company make loss afterwards ( especially the case for taking earlier Dividends ) but i will stick to my point : what you have shown to HO is your income after taking in account all the expense and loss at that particular month. You can challenge but as per current environment HO will refuse your application ( IMHO)

Year split : Make sure for 2 years , your SA 302 = to income show to HO

I have just narrated a simple idea for a very complex topic but in a nut shell what income you have shown to HO in your previous application much be equal to or greater than the income you are showing to HMRC and any thing which is less is RED ALERT. Don't make any assumptions here ( unless you have been advised by professional ) and make YOUR BOOKS update.

Many Thanks

yes you are right HO is very strict even i provide SA302 they still not satisfied and i do not know how we can satisfy HO