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Gurus,

I have ILR due next month, mine is straight forward case (in my opinion) but after reading lot of experiences recently about Tax issues I am now really stressed and confused.

Initial Tier 1
Claimed March 2010-Feb 2011
Income claimed (PAYE 20500+15,900 Self employment income) =£36,400.00

Self employment Turn over shown to HO is £16,553.00 with expenses of £650.00 making net profit £15,900.00.
Turn over declared to HMRC at end of fiscal year 2010-11 is £16,500.00 (£53.00 refund to customer due to error in payment) and expenses £2,725.00 making profit of £13,775.00 however annual income before tax for 2010-2011 is £35,180.0 which is still above my threshold of £35,000.00

Tier 1 Extension
Period March 2012-Feb 2013
Income claimed PAYE 29500 + 6500 = 36000.
Self employment gross income shown £7,000, expenses £500.00 making net profit £6,500 to HO but at end of Tax year (April 2012-March 2013) expenses increased to £2145.00 thus reducing Net profit £4955.00 however total annual income before tax is £35,150.00

Expenses declared are genuine caused due to combination of travel, accommodation, Accountancy and idiot-phone purchase.

Untill Yesterday I really didn't want to amend my tax returns and planned to go to PEO with what I have in hand. My accountant insists not to worry about amending tax returns as expenses claimed are genuine and are within allowable HMRC limit.

I spoke to Solicitor yesterday who advised basically pound is a pound and any sort of discrepancy is looked as deception by HO now a days and they are very strict with Self employment tax issues

Should I be really worried here ?
Has any one been in similar situation ?
Will HO give me chance for my explanation about discrepancy or will they make a decision based on what they feel?
Are they going give some consideration in above scenario ?

I have my whole life here don't want to take risk with ILR so looking for some advice from Guru's.
Is my life going to be ruined for this tax issue even when every thing was done as per law?

Other option I have is to find Tier 2 sponsor switch to Tier 2 sort out tax issues and then apply for ILR
Are HO going to check TAX issues even for Tier 2 aswell ?

Send amendments and send application by post.

I do not think you have any issues in obtaining ILR as ur income threshold is still meeting. My question is, is your income period same as to what you showed to HO? Tax year is different to hmrc than the Period you shown to the HO? If the period is different then you seems safe to me.

computaboi wrote:Gurus,

I have ILR due next month, mine is straight forward case (in my opinion) but after reading lot of experiences recently about Tax issues I am now really stressed and confused.

Initial Tier 1
Claimed March 2010-Feb 2011
Income claimed (PAYE 20500+15,900 Self employment income) =£36,400.00

Self employment Turn over shown to HO is £16,553.00 with expenses of £650.00 making net profit £15,900.00.
Turn over declared to HMRC at end of fiscal year 2010-11 is £16,500.00 (£53.00 refund to customer due to error in payment) and expenses £2,725.00 making profit of £13,775.00 however annual income before tax for 2010-2011 is £35,180.0 which is still above my threshold of £35,000.00

Tier 1 Extension
Period March 2012-Feb 2013
Income claimed PAYE 29500 + 6500 = 36000.
Self employment gross income shown £7,000, expenses £500.00 making net profit £6,500 to HO but at end of Tax year (April 2012-March 2013) expenses increased to £2145.00 thus reducing Net profit £4955.00 however total annual income before tax is £35,150.00

Expenses declared are genuine caused due to combination of travel, accommodation, Accountancy and idiot-phone purchase.

Untill Yesterday I really didn't want to amend my tax returns and planned to go to PEO with what I have in hand. My accountant insists not to worry about amending tax returns as expenses claimed are genuine and are within allowable HMRC limit.

I spoke to Solicitor yesterday who advised basically pound is a pound and any sort of discrepancy is looked as deception by HO now a days and they are very strict with Self employment tax issues

Should I be really worried here ?
Has any one been in similar situation ?
Will HO give me chance for my explanation about discrepancy or will they make a decision based on what they feel?
Are they going give some consideration in above scenario ?

I have my whole life here don't want to take risk with ILR so looking for some advice from Guru's.
Is my life going to be ruined for this tax issue even when every thing was done as per law?

Other option I have is to find Tier 2 sponsor switch to Tier 2 sort out tax issues and then apply for ILR
Are HO going to check TAX issues even for Tier 2 aswell ?

computaboi wrote:Gurus,

I have ILR due next month, mine is straight forward case (in my opinion) but after reading lot of experiences recently about Tax issues I am now really stressed and confused.

...
...

I spoke to Solicitor yesterday who advised basically pound is a pound and any sort of discrepancy is looked as deception by HO now a days and they are very strict with Self employment tax issues

Should I be really worried here ?
Has any one been in similar situation ?
Will HO give me chance for my explanation about discrepancy or will they make a decision based on what they feel?
Are they going give some consideration in above scenario ?

I have my whole life here don't want to take risk with ILR so looking for some advice from Guru's.
Is my life going to be ruined for this tax issue even when every thing was done as per law?

Other option I have is to find Tier 2 sponsor switch to Tier 2 sort out tax issues and then apply for ILR
Are HO going to check TAX issues even for Tier 2 aswell ?

HO does play hardball with tax issues and evidently exercises all manner of due care & diligence with ILR applications.

See recent cases posted by members:
http://www.immigrationboards.com/indefi ... 03107.html
&
http://www.immigrationboards.com/indefi ... 03158.html

Kindly note this is not a tax forum & there are no tax consultants here.
For tax advice suggest find a tax forum.

Members are also reminded of Board T&Cs

If this topic strays from the path of immigration-related matters it will be closed down.

@computaboi.

I understand what you are going through. In my point of view. If you are really concern then submit a tax amend and take a letter from account about your return. Also ask HMRC for confirmation that they have received your amends. (Currently as everyone says, they have lots of backlog to clear up, it might take 2-4 months). If you can pay the outstanding balance in advance, it will be credit in your account. I don't think if HO will put this under deception or whatever. you need to do this before applying.

raju4u wrote:I do not think you have any issues in obtaining ILR as ur income threshold is still meeting. My question is, is your income period same as to what you showed to HO? Tax year is different to hmrc than the Period you shown to the HO? If the period is different then you seems safe to me.

Thanks no income period shown to HO is different from tax returns

Most stressful period in my entire life so far, really worried and scared.
Will Home Office go through same checks (Tax) for switching from Tier 1 to Tier 2

I am in the same situation as you. Although all my T affairs are good by according law, but people will scare you that you must have to match your HO and HM records the same, if they are even in different period. that's why I have now submitted my amends and will ask accountant to give me letter and ask HM to send me confirmation letter for amends they receive and will also pay them the amount in advance. In your case and mine we don't have to pay huge amount, its a few hundred pounds, but its better to be safe then sorry.

And if you check most people cases who are refused, they have done blunders and didn't even submit returns or very blind figures which doesn't even make sense. your figures are very justifiable like mine. that's why I made my mind to go with it and next month I am thinking to book a PEO appointment.

TechBro wrote:I am in the same situation as you. Although all my T affairs are good by according law, but people will scare you that you must have to match your HO and HM records the same, if they are even in different period. that's why I have now submitted my amends and will ask accountant to give me letter and ask HM to send me confirmation letter for amends they receive and will also pay them the amount in advance. In your case and mine we don't have to pay huge amount, its a few hundred pounds, but its better to be safe then sorry.

Thanks for sharing your thoughts.
Yep agree other Tax based refusal cases that I heard mostly have significant difference between income declared to HO and HMRC

Are you going to admit to HO that there was an error in initial tax returns but retrospectively realized then corrected and paid full tax ?

Yes this is what I am going todo. that recently when I was about to apply I came to realise that there was slight difference where some expenses in my initial application have been entered wrong. I've sent an amends to HM and they take 2-4 months to update their record and I can not wait due to my visa expiry date. Although I've paid the amount in advance which I'll provide the proof for it.

TechBro wrote:Yes this is what I am going todo. that recently when I was about to apply I came to realise that there was slight difference where some expenses in my initial application have been entered wrong. I've sent an amends to HM and they take 2-4 months to update their record and I can not wait due to my visa expiry date. Although I've paid the amount in advance which I'll provide the proof for it.

Ok thanks TechBro.
I could amend tax returns but I am worried HO may then ask why retrospective amendments just before ILR and I don't really have good justification for it if I go through that route.
Should I say my original expenses are genuine but to make my tax returns consistent with what I claimed originally during Tier 1 G initial application I made amendments to tax returns ?

If I stick to my original returns what I have in hand then at least I can justify my expenses which occurred after my visa.

Sorry @computaboi I can’t received PM messages as I am a new member. As per forum rules I can not receive messages until I post 30 messages.

This was the same question for me. To go with the current figure which I can explain if they give me a chance ( I think I've heard that when you go for PEO appointment, they ask you if you have been self employed and your HO and HM figures match). There you can explain your figures.

OR
Match it exactly like HO and at last I’ve decided to match it to HO figure. I’ve sent amends to HM and I’ll keep chasing them until it is changes.

If they ask for justification then I can tell that when I was about to apply for ilr my solicitor asked me to checked your previous record if they are ok. When I matched the HO and HM records there was slight difference and for that I’ve send amends and it will take them some time due to backlog, but I've paid the outstanding amount in advance on a safe side.

If you’re confident you can defend your figure, then go ahead.

When submitting all supporting documentation these are the questions they will ask. I think you might be able to explain it in this sheet.

1. Which years during the last 5 years I was employed as limited company director.
2. If I had paid taxes and if yes which years as limited company director.
3. Did I fill up my Self Assessments myself or with the assistance of an auditor (if I had used an auditor, then their details were asked)
4. If the taxes paid to HMRC and the details in my Self Assessment were accurate ? If not, provided reasons below

.

Thanks @TechBro, what you said sounds sensible.
My accountant is damn against making any sort of amendments for previous tax years so
I made my decision to just go with what I have in hand and defend myself. I'll be carrying bills for those expenses with me and provide them if requested.
Hope its going to be ok!

Hi,

Some What in same Situation like you guys.

But this was my own fault, the income i declare to home office was 51850, but on self assessment, I file 50200/-, Pure fault of mine as I forget to add a invoice in a excel sheet that i send to my account in 2011, but again the difference was very small and I have nothing to gain, declaring less income, also I am above the required income any way during my initial tier 1 General. But it is still giving me a sleep less nights. I have already amendment my tax returns for 2011 and just waiting for HMRC to Update, finger cross. I have send my amendments in October there for Hopefully It will be updated before I will apply in May. Apart from that year 2011 I have no difference in tax amount declare to home office in 2013 and HMRC.

@computaboi if i where you i would have still amend my tax return, ( Specially if the income declare is dividend ) why would you take a chance for few hundred pounds, I know you can still explain your situation, but it will dependent on case worker listing !

Also I do not believe it is a good idea to go for a same day PEO Application, as in 80% Cases ( History with Tier 1 - General ) are deffer for further checks. Post is better option than PEO and usually you will get you answer with in 45 days.

These minor errors and oversights are usually understood and the CW doesnt look for an exact match, they just look foe the ball park. I am saying this from my own experience where the case worker had a misunderstanding which I had to clarify and through the discussion, I figured she was happy with a close enough number.

The thing they look out for is fudging with an intent of deception or intentional tax evading.

Chill out folks, as long as you have done nothing wrong and your conscience is clear, stay positive and confident.

I personally know atleast 2 people who have gone to a PEO with their entire 5 year earnings based on contracting work as limited company directors and were granted visas same day no issues. There are success stories of other members here too.

@screenprint: Your case look quite straight forward as well. but you have already sent it on time, which is good.

My problem is I've just sent it this week and it won't updated until May. I hope it get update by then. I've asked account to provide me an amend letter.

@O_Relly: Agree with you that they look for intentional tax evading. I'm sick of this whole faurstration to think what is going to happen. Agree that we should just Chill out and do out best. whatever happen that will happen anyway.

I think we are thinking that UK is the end of the world for us.

I am in the same situation as well guys. I have £200/- difference between what I shown to HO & HMRC. I decided not to make any amendment as this is my genuine expense claim for accountant fee after my visa extension. (here is my story => http://www.immigrationboards.com/indefi ... 03258.html)

Also, I read this document https://www.gov.uk/government/uploads/s ... __EXT_.pdf & I don't think that they can reject visa because of this issue.

@ilrapplicant101: To be honest. you don't need to worry about £200. Just be confident and prepare yourself to explain it. The worry is for those whose figures are out of the proportion and that cannot justify it in an interview.

I think we all should ask UKBA why no one ask these big corporations where no one paying a penny of tax rather then asking a poor Tier 1 Visa holders.

I was watching a program on BBC the other day and found this program on BBC. Most of these big corporations are registered in cayman islands and they call it Tax heaven and this guy investigate the controversial British tax haven.
http://www.bbc.co.uk/iplayer/episode/b0 ... ide-cayman.

We've now strayed beyond immigration into a discussion on tax, which isn't relevant on this forum.