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Mistake in income tax calculation - T2 General

Posted: Mon Oct 12, 2020 12:57 am
by stylishsam
Hi Folks,

My wife is on Tier 2 visa and has had two sponsors till date (including the current sponsor)

Sponsor 1 - Nov 15 - May 16
Sponsor 2 - June 16 - Till date

We are in process of applying for ILR and while checking the income tax filed for the past 5 years we saw a mistake made by sponsor 1 where sponsor 1 has not calculated the previous earnings for the year 2015 which are normally picked up from P45 form

Prior to being a T2 main applicant she was my Tier 2 dependent and she was employed. She received salary for April and May 2015 before going on maternity leave till Oct 2015. The sponsor 1 has not taken into accounted the salary drawn for April and May 2015 and paid income tax based on tax code for that year (1060L) i.e. taking into account the full personal allowance of 10,600£ hence resulting in an unpaid tax of 356£ for 2015-16

I have a below queries

1. I have heard ILR rejections due to tax amendments so will this correction affect our ILR application?
2. What is the process to pay this tax due to HMRC and who needs to pay this i.e. us or the employer (Sponsor 1)
3. Do we need to mention this correction in our cover letter to case worker?
4. Has anyone else faced similar situation on Tier 2 General and what was their ILR outcome?

Thanks in advance

BR

Re: Mistake in income tax calculation - T2 General

Posted: Mon Oct 12, 2020 10:17 am
by zimba
Tax amendment issue had nothing to do with TIer 2 (it was related to the old Tier 1G route and self employment). I suggest not to simply read 'tax amendment' and extrapolate from that without proper understanding. Who claimed such a tax is pending ?? HMRC or is that your own assumption?
PAYE tax calculations and payment are the duty of the employer

Re: Mistake in income tax calculation - T2 General

Posted: Mon Oct 12, 2020 1:38 pm
by stylishsam
Update: we have contacted the HMRC call Center and asked the same query as to what happens when a tax underpayment is made. We were told that if there is a tax underpayment then a special tax code is generated the subsequent year to adjust the tax. This is exactly what happened in our case I.e instead of tax code 1150L her employer was given tax code 927 the subsequent year. so all is well

Additionally, We have also asked for a letter from HMRC to state that all tax and NI payment were up to date and that no gaps exist. May not be required but we still did

Hope this helps someone

Re: Mistake in income tax calculation - T2 General

Posted: Mon Oct 12, 2020 1:45 pm
by zimba
stylishsam wrote:
Mon Oct 12, 2020 1:38 pm
Update: we have contacted the HMRC call Center and asked the same query as to what happens when a tax underpayment is made. We were told that if there is a tax underpayment then a special tax code is generated the subsequent year to adjust the tax. This is exactly what happened in our case I.e instead of tax code 1150L her employer was given tax code 927 the subsequent year. so all is well

Additionally, We have also asked for a letter from HMRC to state that all tax and NI payment were up to date and that no gaps exist. May not be required but we still did

Hope this helps someone
This is common knowledge. PAYE tax adjustments are done via tax codes by the HMRC. UKVI does not require anything regarding this