ILR Refused due to deception

[vinaym]

My ILR got refused today, and the reason for refusal is due to deception however I haven't deceived home office and the information provided is genuine and correct.
My initial Tier 1 General visa was applied in Aug 2010, my initial application was refused and I appeal against the home office decision and won the appeal and received my visa in Dec 2010. Earnings claimed were employment £15,000 and self-employed earnings £20,167. I didn't work between Aug 2010 - Dec 2010 however after receiving my visa I bought consumer data to sell to the UK clients but before I could sell this data I had to go to India for 6 months as father was diagnosed with cancer and passed away.
When I return to UK in June 2011, I couldn't get a job for the next 6 months. I started working in Feb 2012, I worked until Sep 2012 and Started same self employment business and got my tier 1 extn (I have paid tax for it).
In 2013 - 2014, I incurred few losses but continued in my self employment. In 2014, I had to close my business for some reasons so started working with a energy company in Jan 2014 but was made redundant in May 2014. I tried to start my business again but it didn't work out. In 2015, I started contracting with in financial services.

I applied for premium service and was asked for the discrepancy in the earnings from the year 2010, I explained to the case worker that the information provided to both home office and HMRC is correct. I did earn £35K in the year 2010 however it took me 4 months to get my visa and I was out of UK for 6 months so I couldn't sell the data I had bought thus incurred losses. Home office asked me to provide evidence of how I incurred losses so I provided invoices from the company I bought data from, letter from the vendor confirming receiving of payment, I took loan from my mother to pay to the vendor in India, loan agreement between my mother and me and western union receipts of the repayment of loan.
Now, the case worker thinks I have deceived home office and none of my earnings are genuine however all my earnings are genuine. My circumstances kept changing, business made profits and incurred losses. I have business bank statements, client invoices (From UK based companies who have been in business for many years). I have 14 days for administrative review, I will really appreciate if any of you could share some advise.

[Jas2013]

Hi Vinaym,
Which Peo you applied ?
Did you applied as self employed and have you submitted SA302 ?

[muraxza]

So you saying that you didn't pay any tax on the earnings you claim on your initial application because of losses later on?

[vinaym]

Yes, I didn't pay tax for the year ending 2010 as I incurred losses subsequent to my application

[bluecandi]

Did you get refund from hmrc?

Or you didnt submit self assessment altogether?

[honey2008]

Yes, I didn't pay tax for the year ending 2010 as I incurred losses subsequent to my application


To be honest this is what the UKBA call a Deception

[honey2008]

I am afraid the OLD trick of Showing Profit for getting VISA Extn and then showing losses to ensure not paying taxes is gone.

All sensible board members are advising to sort out taxes before applying VISA but still people take risk and then.....

[Killer14bean]

Sorry to hear that your ILR was refused.

Did you submit your self-assessment at all? and how long did the case worker take to decide your application?

[ocean25]

Yes, I didn't pay tax for the year ending 2010 as I incurred losses subsequent to my application

Hi

Sorry to hear that, how did you incurrred losses ? Did you carry back the loss from your previous financial year ?.

Pleas share

[muraxza]

Ok. Unfortunately then you might have zero chances to win AR or JR sorry for bit harsh but this is a real fact as you have already admitted that you incurred loss in front of HO even if you now amend your tax return and will go for the fresh application the HO would still raise this question that how did you manage to change your loss into profit and paid taxes
Secondly you cant net off previous years profit with the future losses the accounting treatment for this is entirely different but you did otherway round...

[Killer14bean]

Hi Blocked Username,

What if the income declared to HO smears over two tax years and in one year (remaining part of the year) after the application there are genuine payments to eg. sub-contractors to get future long term work and the total tax for that year gets impacted? Will HO be considerate enough to understand the situation? or they would simply refuse the application?

[vinaym]

Killer14bean - HO took 4 weeks to arrive to this decision

[vinaym]

Blocked Username - If you look at my self-employment earnings claimed are within the same year. I claimed earnings for 4 months and whilst i was waiting for my visa (4 months) and later i was out of UK for 6 months. circumstances were not in my favor and couldn't continue with business. One can make profit one month and can incur losses in the following month, this is the risk involved in self-employment.

[muraxza]

Hi Blocked Username,

What if the income declared to HO smears over two tax years and in one year (remaining part of the year) after the application there are genuine payments to eg. sub-contractors to get future long term work and the total tax for that year gets impacted? Will HO be considerate enough to understand the situation? or they would simply refuse the application?

In the real world it does happens you can have losses or massive expenses in other years but unfortunately HO will not consider this because they grant you visa on your threshold so they will only like to see taxes should be paid on your complete threshold even if its fall in two years.

if I were you I would have to pay this from my pocket considering the future benefits.