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Hi

My Husband in Tier -2 general main applicant completes his 5 years in DEC 2021.

Before moving to Tier -2 general he was an ICT dependant working on a contract, At that time, the income was paid by the umbrella company as Chargeable Gains, the same was filed in SA and CG tax paid to HMRC, Now the umbrella company went on liquidation and seems to have some discrepancy during its wind up and resulted in a loan charge on employees worked in that umbrella company. This is yet to be settled waiting for HMRC on settlement decision.

My question here is

1. Should the loan charge needs to be settled/cleared before applying for ILR?
2. Will this have any impact on the ILR decision?

This is not relevant for his ILR

Some reference found -

ILR refused due to Tax Amendments under Paragraph 322 (5). Many skilled migrants have their application for Indefinite Leave to Remain (ILR) refused on the grounds – ‘undesirable to permit the person concerned to enter or remain in the United Kingdom, because of errors they have made in their tax returns in the past, even if these errors have been rectified and full tax is paid to the HMRC.

The Home Office has been refusing ILR applications primarily using paragraphs 322(2), 322(5) and 19(i),19(j) of Appendix A of the Immigration Rules and alleging that the applicant has acted deceptively in their current and/or previous applications. This allows the Home Office to refuse an ILR applicant by inferring that past mistakes made on their tax returns mean their “character and conduct” make them undesirable to be allowed to live permanently in the UK.

Do not randomly rely on snippets of information without context. That was in the context of the old Tier 1 General skilled route and there were very specific reasons for tax amendment refusals. Many applicants fraudulently declared high self-employment income in their annual tax returns to meet the income requirements of Tier 1 visa and then when they secured the visa, they later amended their returns and lowered their claimed income to avoid paying taxes. UKVI argued that they secured Tier 1 visas via deception and refused them ILR.

This had nothing to do with general tax issues, loans or debt or anything like that