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Hi immigration gurus,

I'm in need of some urgent advise here please, any advice will be much appreciated!

I have my PEO appointment for ILR (via Tier 1) route in January 2016. I've been company director / contractor for 4.5 years out of the last 5 years.

In my Tier 1 extension application back in 2013, I declared a mix of income via dividends and salary from my limited company. My total income was around £45k, well above my target of £35k.

Of the £45k income i declared, £41k were from dividends. Now at the time of my ILR application, my solicitor spotted a difference of £6k between my Tier 1 extension application and Self assessment for that particular tax year. In other words, I did my self assessment after making my extension application and for some reason my accountant declared £35k (£6k less than £41k i declared in my application)

It was an oversight on accountant's as well as my behalf, and now my solicitor has advised me to correct my tax returns for 2013, and ensure it aligns with what was declared in my Tier 1 extension application.

I've asked my accountant to make this change however HMRC won't be able to provide me with a confirmation for another 3-4 months which is their standard processing time.

I'm really nervous about my situation, always paid taxes on time, no poor immigration history, but due to my accountant's error, I'm going through this trauma.

Folks, please give me any advice that could help my case. Does anyone know of similar cases and what was the outcome? Any help will be much appreciated! God bless.

Regards,
ILR Applicant

It is not necessary to post your question so many times in so many different threads/topics, they have been removed now and your question split to your own thread. Please see Multiple Posts (click)

Hi CR001

Oops sorry I'm new on this forum, wasn't aware how this works but thanks for letting me know!

Sorry for being harsh BUT I have not a single oversight where TAX has been paid more.

Also its very strange that solicitor noticed this and not you who got the income and professional accountant and i feel its deliberate attempt to underpay tax.

Also how can you under declare under Self Assessment when you have already taken dividend from company net profit and adjust company accounts.

Past Solutions:- Ensure you Company Accounts and SA are revised asap AND BEFORE ILR application otherwise
its a straight refusal under deception.Also this remedy is not sure shot because HO sometimes given a ban of 10 years wherein your subsequent applications are also refused.

Hi Honey2008,

To be clear, it wasn't a deliberate attempt to save tax, it was an error due to miscalculation of what was paid in as dividends vs. reimbursement of out of pocket expenses. Me/ accountant didn't have a signt of this until tax year ended but agree I should have ensured amounts tallied.

I would have rather over paid my taxes than underpaid if I knew it will end up like this. Anyway we are talking about less than £1k unpaid taxes.

If you're able to help then kindly advise.

Thanks,
ILR applicant

Does anyone know of similar cases and what was the outcome

If you search the forum, there are many many similar recent cases, all Tier 1 General migrants. Probably many refusals too.

Your application is unlikely to be approved at the PSC appointment. At best it will be deferred and passed to a case worker with a higher level of authority,
or rejected on the day. In-person applications are only advisable for 100% straightforward applications. Tier-1 General tax discrepancies are coming under a great deal of scrutiny and accountants' errors are not accepted as a defence.

Hi Casa,

Thank you for your reply.

Would you rather suggest me to send my application by post instead of applying in person so there are chances of a regular case worker to review my application than someone with more authority/ experience?

Many thanks

I would suggest you to send the application through post. but if case workers makes a decision before hmrc updates the accounts/taxes then the result could be negative but at least this gives you a hope in case HMRC updates record by then.

ILR_Applicant111 wrote:Hi Casa,

Thank you for your reply.

Would you rather suggest me to send my application by post instead of applying in person so there are chances of a regular case worker to review my application than someone with more authority/ experience?

Many thanks

Yes. Case Workers at the PSC don't have the level of authority to make a decision on any application which requires additional checks or verification. If your application isn't processed on the day you will still be charged the premium fee.

if you want to go for psc appointment then take a written confirmation from hmrc that your documents are with them for amendments this will give a good character impression that you have already acknowledge this and sent for yhe rectification by yourself and there may be a good chance that you may get your ilr on this basis...even if they decide to hold your documents for the verifications they may not be able to impose any deception section after.

+1 to Blocked Username

Call HMRC and get the letter of confirmation.

Hi Immigration Gurus,

I'm in need of your advice again please.

I have resubmitted my SA from 3 years ago as there was some difference in my dividends declared. In any case, even after less dividend declared, my total declared income (dividends + salary) was much above the threshold of £35k. On other hand there are no issues with tax returns from my initial application time.

It is highly unlikely for HMRC to amend tax returns before my PEO on 27th Jan. Please can you help me with these questions:

1. Would you suggest I still go for PEO with my self assessment forms for last 5 years?
2. Or should I apply by post to buy time?
3. If post then I will loose the chance of explaining to CW if if they bring this up?

Thank you v much, your responses are highly awaited.

3. An in person application appointment is not an interview. The CW don't ask you to 'explain things'. They take your documents, do their checks and make a decision based on the evidence and checks they have done.

If you have not paid tax or declared different incomes to HO & HMRC, it is likely that your expensive in person appointment will be deferred for further checks and join the postal pile.

Thank you Cr001

It's my first PEO and I could be entirely wrong, but I was given the impression by the lawyer that CW clarifies any gaps before making an appointment which doesn't seems like is the case from your response.

So I guess your suggestion is to apply by post instead?
I've read through lots of threads on here but maybe could t find a similar case like mine. Since you're so active and helpful on this forum, do you know of any cases where application for sent via post whilst HMRC's reassessment was still pending?

Many many thanks

but I was given the impression by the lawyer that CW clarifies any gaps before making an appointment

What do you mean by this? There is only one appointment, the one that you booked online.

Calling an applicant back on another day for an interview appointment is rare.

I need to reiterate that this is not a tax forum and we do not have a tax specialist. The forum is being flooded by Tier 1 G tax queries and most of these topics are being locked as they are tax not immigration questions.

If your case is not 100% straightforward, and you have tax and income discrepancies that you declared (and now quickly trying to fix), you should probably apply by post.

Thanks CR001

My apologies I meant before making a decision and not appointment. I will certainly take your advice and send via post then.

Many thanks again

Remember that HO have access online to the other government departments information. Very easy for HO to see what is what and information held about you.

@ILR_Applicant111
Your lawyer is correct, the case worker will try and clarify any gaps in your application with you in a PEO appointment before making a decision. However, if additional checks and verification is required then they will be unable to make a decision on the same day.

I had personal experience of this earlier this week during my PEO ILR appointment (I will share this separately), where the case worker clarified something with me about my 1st in-country extension in 2012 which was based on income as a limited company director vs what she was seeing on tax paid to HMRC. It was a quick 15 minute discussion, where I clarified her mis-understanding and I was granted ILR on the same day in about 2 hours.

Now coming to your original query, if I understand correctly, there was an error when filling up the self assessment, with a difference of 6K, however the difference in amount of tax still to be paid by you to HMRC is 1K ?

Also in spite of this human error, if UKVI (home office) were to consider only 36k they see on HMRC records, you would have still been eligible for an extension anyway, so that clearly shows this is a genuine error and not an act of intentional deception as the only gain here would be an additional 10 points.

As far as the Home office are concerned, you still qualified for an extension with 35k, and they might change the points that were awarded for you at that time, but unlikely that it will result in a refusal.

Also given that the tax amount that is outstanding to HMRC is still only 1K, I don't think there is any need to worry much here.

Have you contacted HMRC directly to ask them about a timeline for when their records will be updated ? Also have you requested a 5 year employment history document from HMRC as it is today ? If you request this by phone it will come within a weeks time.

O_Relly wrote:@ILR_Applicant111
Your lawyer is correct, the case worker will try and clarify any gaps in your application with you in a PEO appointment before making a decision. However, if additional checks and verification is required then they will be unable to make a decision on the same day.

I had personal experience of this earlier this week during my PEO ILR appointment (I will share this separately), where the case worker clarified something with me about my 1st in-country extension in 2012 which was based on income as a limited company director vs what she was seeing on tax paid to HMRC. It was a quick 15 minute discussion, where I clarified her mis-understanding and I was granted ILR on the same day in about 2 hours.

Now coming to your original query, if I understand correctly, there was an error when filling up the self assessment, with a difference of 6K, however the difference in amount of tax still to be paid by you to HMRC is 1K ?

Also in spite of this human error, if UKVI (home office) were to consider only 36k they see on HMRC records, you would have still been eligible for an extension anyway, so that clearly shows this is a genuine error and not an act of intentional deception as the only gain here would be an additional 10 points.

As far as the Home office are concerned, you still qualified for an extension with 35k, and they might change the points that were awarded for you at that time, but unlikely that it will result in a refusal.

Also given that the tax amount that is outstanding to HMRC is still only 1K, I don't think there is any need to worry much here.

Have you contacted HMRC directly to ask them about a timeline for when their records will be updated ? Also have you requested a 5 year employment history document from HMRC as it is today ? If you request this by phone it will come within a weeks time.

You missed the point that CR001 picked up on. ILR_Applicant wrote "CW clarifies any gaps before making an appointment" No clarification takes place before the appointment.

Casa wrote:

O_Relly wrote:@ILR_Applicant111
Your lawyer is correct, the case worker will try and clarify any gaps in your application with you in a PEO appointment before making a decision. However, if additional checks and verification is required then they will be unable to make a decision on the same day.

I had personal experience of this earlier this week during my PEO ILR appointment (I will share this separately), where the case worker clarified something with me about my 1st in-country extension in 2012 which was based on income as a limited company director vs what she was seeing on tax paid to HMRC. It was a quick 15 minute discussion, where I clarified her mis-understanding and I was granted ILR on the same day in about 2 hours.

Now coming to your original query, if I understand correctly, there was an error when filling up the self assessment, with a difference of 6K, however the difference in amount of tax still to be paid by you to HMRC is 1K ?

Also in spite of this human error, if UKVI (home office) were to consider only 36k they see on HMRC records, you would have still been eligible for an extension anyway, so that clearly shows this is a genuine error and not an act of intentional deception as the only gain here would be an additional 10 points.

As far as the Home office are concerned, you still qualified for an extension with 35k, and they might change the points that were awarded for you at that time, but unlikely that it will result in a refusal.

Also given that the tax amount that is outstanding to HMRC is still only 1K, I don't think there is any need to worry much here.

Have you contacted HMRC directly to ask them about a timeline for when their records will be updated ? Also have you requested a 5 year employment history document from HMRC as it is today ? If you request this by phone it will come within a weeks time.

You missed the point that CR001 picked up on. ILR_Applicant wrote "CW clarifies any gaps before making an appointment" No clarification takes place before the appointment.

and you missed the clarification the OP made later on here Casa ,

Thanks CR001

My apologies I meant before making a decision and not appointment. I will certainly take your advice and send via post then.

Many thanks again

Hi OR

Thank very much for taking time to respond. Just to add, even though there was a difference of £6k in dividends declared, the total income I declared with a mix of gross dividends, salary and directors allowance was around £43k. Which I think in my view might makes my case strong as I would have still been above the £35k mark. No deceptions here only genuine mistake which I have now rectified.

With regards to HMRC, I have my last 5 years SA302, out of the five years, only 1 year is not up to date since I have now amended my 3 year old returns at the beginning of Jan this year. Timeline from HMRC for getting it amended is end of March 2016. Please also note as per revised SA, I owed £1.8k (not 1k) additional taxes which I paid even before HMRC received my revised self assessment this month, therefore my SA account is currently showing a Credit of £1.8k


So I guess I'm questioning the same as before:

1 should I still go for PEO next week, if they find discrepancy will the CW ask for an explanation? I can then explain and state that the I come declared 3 years ago was still £8k above the £35k threshold.

2. And if I go for PEO, would you advise to include my SA302 as of today I.e one with £6k less dividends.

Kindly help, as you've been in a similar position.

Many many thanks

ILR_Applicant111 wrote:Hi OR

Thank very much for taking time to respond. Just to add, even though there was a difference of £6k in dividends declared, the total income I declared with a mix of gross dividends, salary and directors allowance was around £43k. Which I think in my view might makes my case strong as I would have still been above the £35k mark. No deceptions here only genuine mistake which I have now rectified.

With regards to HMRC, I have my last 5 years SA302, out of the five years, only 1 year is not up to date since I have now amended my 3 year old returns at the beginning of Jan this year. Timeline from HMRC for getting it amended is end of March 2016. Please also note as per revised SA, I owed £1.8k (not 1k) additional taxes which I paid even before HMRC received my revised self assessment this month, therefore my SA account is currently showing a Credit of £1.8k


So I guess I'm questioning the same as before:

1 should I still go for PEO next week, if they find discrepancy will the CW ask for an explanation? I can then explain and state that the I come declared 3 years ago was still £8k above the £35k threshold.

2. And if I go for PEO, would you advise to include my SA302 as of today I.e one with £6k less dividends.

Kindly help, as you've been in a similar position.

Many many thanks

I think you have a reasonably strong case here that in-spite of the discrepancy you still had £43K, which would prove that there was no deception here.

During my PEO appointment, I had to fill up an additional form if I were every a limited company director during the entire 5 year period, and in that form it had a question such as if my SA and details submitted to HMRC were accurate and if not reasons why. See detailed personal experience post here,

So clearly they provide you with an opportunity to explain all of this.

If I were you, I would go PEO, as I would have an opportunity to personally explain all this. The worst that could happen is that you might not get a decision the same day, as they might take time to verify with HMRC.

Good Luck!

Hi OR,

This is really helpful, thanks again!

Regarding the self employment declaration, I'm guessing you gave reason for the difference in your case? It yes please would you mind telling me what did you mention?

Thanks

ILR_Applicant111 wrote:Hi OR,

This is really helpful, thanks again!

Regarding the self employment declaration, I'm guessing you gave reason for the difference in your case? It yes please would you mind telling me what did you mention?

Thanks

To clarify, there was no difference in SA declared by me vs records in HMRC, it was a misunderstanding by the case worker that just needed to be clarified. Did you read the details of my experience here ?
http://www.immigrationboards.com/indefi ... 01728.html