URGENT! PSC visa on hold - TIER 1 G to ILR - tax discrepancy

[masterpeas]

I had my PSC today and had a complete shock, yes CW could not give me the decision today and they will seek for confirmation from HMRC before reaching the final decision! I am pretty sure this has been a headache and problem to many applicants on this forum, however I am urgently seeking for some advice and help with my case as I do not know what to do, especially my baby is due very soon

Initial T1G submitted in 2012, used salary + self-employment, 2nd T1G submitted in 2014, used salary + self-employment. Current application: only use full-time employment.

it should be a very simple case if they only assess on current application form, however fate is not in my favour today and when I walked in, as soon as I mentioned TIER1G to ILR, they gave me a questionnaire to fill in which asked about previous applications relating to SA. I used all my knowledge to fill them in and handed over.

After few hours of waiting time, I was called in for an interview which was all about SA & tax return due to that the CW found HMRC shows I had no tax return submitted at all since 2010 - 2014.... I had no knowledge at all, i responded saying i only requested P&L account from the chartered account and trusted them to do the rest incl. tax return... Now all the problems have revealed which put my life and the baby's life into risk, I am really panicked and want to ask guru for advice what I can do... BTW, i have been in UK for 9years and 4months since my study here. too early to go for 10yr route...

My questions so far are:

1. probably due to my own innocence and oversight of the accountant, he did not mention or even think about this for me and I did not even bother to think about tax return myself at that point after securing the visa... every time after getting the visa, I stopped being SA and I was aware that with TIER1G there is no requirement for us to be on the same salary level throughout the 5-yr. But I did meet all the requirements for each visa application with combined salaries.

2. If i do have to fill all the missed tax return now, can I do it and how does it work in terms of penalties and acceptance?? Will UKBA accept this late filing even if HMRC may allow me to pay the tax now?

3. What personal grounds should I use to seek for an approval in my case? i really dont know what to think now... My brain is only thinking about worst scenario - not knowing where baby will be born especially when refusal reaches me just before the due date!!!

GOD, PLEASE HELP US ALL WHO ARE IN NEED.... I TRULY FEEL GUILTY AND IGNORANT FOR THIS RESULT

Thank you all for any response and valid points!! I'll be keen to wait online everyday for any lights coming through.

[Kumar295]

I had my PSC today and had a complete shock, yes CW could not give me the decision today and they will seek for confirmation from HMRC before reaching the final decision! I am pretty sure this has been a headache and problem to many applicants on this forum, however I am urgently seeking for some advice and help with my case as I do not know what to do, especially my baby is due very soon

Initial T1G submitted in 2012, used salary + self-employment, 2nd T1G submitted in 2014, used salary + self-employment. Current application: only use full-time employment.

it should be a very simple case if they only assess on current application form, however fate is not in my favour today and when I walked in, as soon as I mentioned TIER1G to ILR, they gave me a questionnaire to fill in which asked about previous applications relating to SA. I used all my knowledge to fill them in and handed over.

After few hours of waiting time, I was called in for an interview which was all about SA & tax return due to that the CW found HMRC shows I had no tax return submitted at all since 2010 - 2014.... I had no knowledge at all, i responded saying i only requested P&L account from the chartered account and trusted them to do the rest incl. tax return... Now all the problems have revealed which put my life and the baby's life into risk, I am really panicked and want to ask guru for advice what I can do... BTW, i have been in UK for 9years and 4months since my study here. too early to go for 10yr route...

My questions so far are:

1. "probably due to my own innocence and oversight of the accountant, he did not mention or even think about this for me and I did not even bother to think about tax return myself at that point after securing the visa... every time after getting the visa, I stopped being SA and I was aware that with TIER1G there is no requirement for us to be on the same salary level throughout the 5-yr. But I did meet all the requirements for each visa application with combined salaries".

Question here is, when you met the requirements for each visa application; did you pay the tax for the amount declared to the UKVI during your application?

To my understanding, you had no tax return submitted at all since 2010 - 2014 in HMRC record; that means your declared SE amount got no records with HMRC. If that's the case that would be a easy job for the case worker to reject your application.

If you are sure that you paid the tax for the amount claimed with UKVI; you must have to prove to UKVI that you had submitted and paid the taxes for the claimed income.




2. "If i do have to fill all the missed tax return now, can I do it and how does it work in terms of penalties and acceptance?? Will UKBA accept this late filing even if HMRC may allow me to pay the tax now?"

Yes, you can do that and that's a time taking process. First go to your accountant along with your records of income during your initial application and extension and ask him to file for the income you declared to UKVI. Keep chasing HMRC and they would send you the manual calculations. Once you receive them you could clear the amount.




3. "What personal grounds should I use to seek for an approval in my case? i really dont know what to think now... My brain is only thinking about worst scenario - not knowing where baby will be born especially when refusal reaches me just before the due date!!!"

When is your visa expiring; if you have time make your application by post and that would give you more time, as it's taking more than 6 months and by then you would complete your 10 years stay in this country.


GOD, PLEASE HELP US ALL WHO ARE IN NEED.... I TRULY FEEL GUILTY AND IGNORANT FOR THIS RESULT

Thank you all for any response and valid points!! I'll be keen to wait online everyday for any lights coming through.

[Wanderer]

Tax returns are only a summary of your tax affairs, earned, etc, which generated either no action of or a tax refund or demand.

As you now know, anyone (generally) with non standard tax affairs has to fill one in, company directors (usually) do.

That's normally fine, but are you saying you owe tax too?

If you search this very forum you will see this is very common state of affairs, usually caused by overstated earning earnings to gain T1G extension, tax paid on real (lower) amount.

Also note the checks are the same for the 10 year route so don't hold on for that.

Have a read...

[noajthan]

I had my PSC today and had a complete shock, yes CW could not give me the decision today and they will seek for confirmation from HMRC before reaching the final decision! I am pretty sure this has been a headache and problem to many applicants on this forum, however I am urgently seeking for some advice and help with my case as I do not know what to do, especially my baby is due very soon

...

Thank you all for any response and valid points!! I'll be keen to wait online everyday for any lights coming through.

PEO/PSC is inappropriate for complex cases such as yours. It is a waste of money paying for same day service in such cases.

The outcome will now hinge on whether deception is detected in your case.
This will have implications for any 10 year LR application you may make as well as for your current application.

[masterpeas]

thank you so much Kumar for your thorough answers to my questions.

your 1st answer did scare me a bit as I did not file any tax return at all for 2 periods of SA, not sure what happened and it was left like that, no reminders received from HMRC at that time and I just thought accountant had dealt with everything... using CW's words, he found I had no record of tax return for my declared SA. During the interview I confirmed i handed over all my clients invoices and bank stmts to accountant and trusted him to do the rest. He provided P&L account to me which I reviewed but i did not see the SA tax return. Hence I said i would go to HMRC asking for a full record and also confirm with my accountant with what happened. That's why he did not reject me straight way.

My concern is that it sounds like my case does sound more serious than those people who filed short of tax?? If i do file it now and keep chasing HMRC for updates, will visa be possible to be granted once I have paid the tax for declared roughly 20k net income? (the rest declared income I used was paid via PAYE which was fine - said by CW)

also would you suggest me going back to the old accountant who prepared my SA p&L or using new accountant? The new accountant confirms that he can do filing straight away and will be willing to keep chasing HMRC on my behalf to get all these sorted. also if any penalties he will fight for me. This sounds like the help I really need, to action fast. However I am not sure if there is any benefit of using old accountant??

How much does accountant charge for late filing please??

Thanks again!!

My questions so far are:

1. "probably due to my own innocence and oversight of the accountant, he did not mention or even think about this for me and I did not even bother to think about tax return myself at that point after securing the visa... every time after getting the visa, I stopped being SA and I was aware that with TIER1G there is no requirement for us to be on the same salary level throughout the 5-yr. But I did meet all the requirements for each visa application with combined salaries".

Question here is, when you met the requirements for each visa application; did you pay the tax for the amount declared to the UKVI during your application?

To my understanding, you had no tax return submitted at all since 2010 - 2014 in HMRC record; that means your declared SE amount got no records with HMRC. If that's the case that would be a easy job for the case worker to reject your application.

If you are sure that you paid the tax for the amount claimed with UKVI; you must have to prove to UKVI that you had submitted and paid the taxes for the claimed income.

[masterpeas]

Tax returns are only a summary of your tax affairs, earned, etc, which generated either no action of or a tax refund or demand.

As you now know, anyone (generally) with non standard tax affairs has to fill one in, company directors (usually) do.

That's normally fine, but are you saying you owe tax too?

If you search this very forum you will see this is very common state of affairs, usually caused by overstated earning earnings to gain T1G extension, tax paid on real (lower) amount.

Also note the checks are the same for the 10 year route so don't hold on for that.

Have a read...

I didnt overstate the earnings and trying to reduce tax amounts at that time, it was a complete stupid mistake of overseeing tax retrn and not filing at all...........

[masterpeas]

PEO/PSC is inappropriate for complex cases such as yours. It is a waste of money paying for same day service in such cases.

The outcome will now hinge on whether deception is detected in your case.
This will have implications for any 10 year LR application you may make as well as for your current application.

Thank you Noajthan for your kind inputs../

I did not know I would have tax issue till seeing the CW, how stupid is that... because baby due soon, i was only thinking to get this done ASAP... now my head is in sand

I am sure from simple understanding of this outcome, everyone even incl. myself would class this as "deception", however wondering if there could be any ANY solution to put it right?

My partner will be applying for 10year LR, not sure if he succeeds and i can join him later as dependant after paying all taxes and CW still rejects my case??

[noajthan]

Thank you Noajthan for your kind inputs..

I did not know I would have tax issue till seeing the CW, how stupid is that... because baby due soon, i was only thinking to get this done ASAP... now my head is in sand

I am sure from simple understanding of this outcome, everyone even incl. myself would class this as "deception", however wondering if there could be any ANY solution to put it right?

My partner will be applying for 10year LR, not sure if he succeeds and i can join him later as dependant after paying all taxes and CW still rejects my case??

Most unfortunate.

The previous accountant does not seem appropriate to help you out of the hole that she has evidently dug for you.

Suggest you need the detailed outcome of this application before you can formulate a viable action plan.
Good luck.

[Kumar295]

thank you so much Kumar for your thorough answers to my questions.

your 1st answer did scare me a bit as I did not file any tax return at all for 2 periods of SA, not sure what happened and it was left like that, no reminders received from HMRC at that time and I just thought accountant had dealt with everything... using CW's words, he found I had no record of tax return for my declared SA. During the interview I confirmed i handed over all my clients invoices and bank stmts to accountant and trusted him to do the rest. He provided P&L account to me which I reviewed but i did not see the SA tax return. Hence I said i would go to HMRC asking for a full record and also confirm with my accountant with what happened. That's why he did not reject me straight way.

My concern is that it sounds like my case does sound more serious than those people who filed short of tax?? If i do file it now and keep chasing HMRC for updates, will visa be possible to be granted once I have paid the tax for declared roughly 20k net income? (the rest declared income I used was paid via PAYE which was fine - said by CW)

" I'm afraid to say that this current application would be rejected by any means and it completely depends on the case worker when you apply for the next time, after you have amended your tax. There are few cases where people got rejected on PSC and then amended the tax and reapplied by post and got the positive result. That totally depends on your luck and the case worker working on it. No one could guarantee that you would end with a positive result after you have made the application with amendments".

also would you suggest me going back to the old accountant who prepared my SA p&L or using new accountant? The new accountant confirms that he can do filing straight away and will be willing to keep chasing HMRC on my behalf to get all these sorted. also if any penalties he will fight for me. This sounds like the help I really need, to action fast. However I am not sure if there is any benefit of using old accountant??

'It doesn't matter whom you go with. Is it possible to request a letter from your previous accountant stating, " That it's totally his fault and you never had any intention to deceive the UKVI". If it's his fault he must be liable for his mistake.

If you go with the old accountant, if you are intervied once more, they raise a question; out of your previous experience with this accountant, why would you still relay on him?'



How much does accountant charge for late filing please??

'Any accountant would be charging around £150-200 for a financial year; that means you need to submit for 2 years. Once you have done that you need to close down your SE too. So the ideal cost for all these would be 300-500 at most and that too depends on the accountant too.'

Thanks again!!

My questions so far are:

1. "probably due to my own innocence and oversight of the accountant, he did not mention or even think about this for me and I did not even bother to think about tax return myself at that point after securing the visa... every time after getting the visa, I stopped being SA and I was aware that with TIER1G there is no requirement for us to be on the same salary level throughout the 5-yr. But I did meet all the requirements for each visa application with combined salaries".

Question here is, when you met the requirements for each visa application; did you pay the tax for the amount declared to the UKVI during your application?

To my understanding, you had no tax return submitted at all since 2010 - 2014 in HMRC record; that means your declared SE amount got no records with HMRC. If that's the case that would be a easy job for the case worker to reject your application.

If you are sure that you paid the tax for the amount claimed with UKVI; you must have to prove to UKVI that you had submitted and paid the taxes for the claimed income.

[masterpeas]

'It doesn't matter whom you go with. Is it possible to request a letter from your previous accountant stating, " That it's totally his fault and you never had any intention to deceive the UKVI". If it's his fault he must be liable for his mistake.

How possible the accountant will be willing to do that for me? i reckon that would damage his badge of chartered accountant, wouldn't it? any idea what covering letter i should write to fight for my case? I think at this stage before JR/Appeal, i dont have to employ a solicitor, do i?

If you go with the old accountant, if you are intervied once more, they raise a question; out of your previous experience with this accountant, why would you still relay on him?'

I wont go for interview again i think, CW said i can post docs to him after yesterday even though he will still wait for HMRC confirmation. unless I would have to go to court to face any questions....





'Any accountant would be charging around £150-200 for a financial year; that means you need to submit for 2 years. Once you have done that you need to close down your SE too. So the ideal cost for all these would be 300-500 at most and that too depends on the accountant too.'

Thanks again!!

[Wanderer]

Self assessment is a personal issue, an accountant not informing you is not the accountants fault.

I'd say for £150/200 pa you're getting one seriously crap accountant, mine costs £1500 pa and he tells me everything, leaves no doubt as to my obligations, and checks I'm checking him since ultimately it's my head on the block, I sign the accounts, he's just my agent.

What I don't understand here is do you owe tax and why?

[Kumar295]

I was talking about the cost submitting the SA only; if your are a company director and all; it's different.
Anyways it totally depends on an individual choice to choose one.

Self assessment is a personal issue, an accountant not informing you is not the accountants fault.

I'd say for £150/200 pa you're getting one seriously crap accountant, mine costs £1500 pa and he tells me everything, leaves no doubt as to my obligations, and checks I'm checking him since ultimately it's my head on the block, I sign the accounts, he's just my agent.

What I don't understand here is do you owe tax and why?

[monty87]

Refusal is inevitable in this application. I would suggest to post 2nd application within 14 days if your visa has expired. You will need to provide credible explanation in your 2nd application with documentary evidence that will demonstrate that it was an error between income declared to HO and HMRC. Its more of negligence in your case that does raise concerns about your character for not filing tax returns and an attempt to deceive HO for visa purposes only. Provide abundant information, explanation and copy of tax returns along with 2nd application to fight your case in court later. Chances are very slim.

[masterpeas]

Refusal is inevitable in this application. I would suggest to post 2nd application within 14 days if your visa has expired. You will need to provide credible explanation in your 2nd application with documentary evidence that will demonstrate that it was an error between income declared to HO and HMRC. Its more of negligence in your case that does raise concerns about your character for not filing tax returns and an attempt to deceive HO for visa purposes only. Provide abundant information, explanation and copy of tax returns along with 2nd application to fight your case in court later. Chances are very slim.

i went to see the accounting firm who helped with my previous 2 applications and the new accountant manager said there should be no issue of winning this case providing that i submit all missed tax return and what HO wants to see is that everything has been filed against what's declared. If they do reject me, I will go to the court and fight against it. They should allow mistake happening and remedial actions taken to grant the visa. Of course, everything in god's hands. I pray every day...

[masterpeas]

Self assessment is a personal issue, an accountant not informing you is not the accountants fault.

I'd say for £150/200 pa you're getting one seriously crap accountant, mine costs £1500 pa and he tells me everything, leaves no doubt as to my obligations, and checks I'm checking him since ultimately it's my head on the block, I sign the accounts, he's just my agent.

What I don't understand here is do you owe tax and why?

seriously?? cannot believe you pay that much pa, is it only for doing tax return?? your business case must be quite complicated then. never heard of that much fee for just tax return..

what do you not understnad plz? it looks like i owe tax, simply becuz no tax return filed....

[masterpeas]

I'm afraid to say that this current application would be rejected by any means and it completely depends on the case worker when you apply for the next time, after you have amended your tax. There are few cases where people got rejected on PSC and then amended the tax and reapplied by post and got the positive result. That totally depends on your luck and the case worker working on it. No one could guarantee that you would end with a positive result after you have made the application with amendments".

if people get rejected, would not there be an appeal right for review within 14 days? can you do fresh 2nd application via post during that time? I thought we can only appeal to settle that matter to fight for the rejection and put things right, am i right?

I totally agree, amendments do not make my case stronger. However without any amendments its a dying case anyway. I just wonder how previously people explained such matter and won the case?

'It doesn't matter whom you go with. Is it possible to request a letter from your previous accountant stating, " That it's totally his fault and you never had any intention to deceive the UKVI". If it's his fault he must be liable for his mistake.

If you go with the old accountant, if you are intervied once more, they raise a question; out of your previous experience with this accountant, why would you still relay on him?'

Hi Kumar, thanks for your comments again. I'd like to share with you what i found today after speaking with the accountant, see if you may come up with any other great & honest thoughts just like your inputs above

I did go back to the accounting firm that i used before and a new manager accepted my case and said he would start working on it from beginning of Feb due to busy season for them now (is it peak season for accounting firm now? ) he sounds with confidence and he said he will focus on the tax return and help me to win the case. I have requested all previous P60,P45,SA records etc to get ready.

Questions in my head are: how to write a strong covering letter? even though the accountant said it is not needed as it would address the issue... he suggested focusing on the missed tax return and getting them done ASAP. I do want to put all my risks in his hands and it seems i have to trust him doing the amending works. However i wonder if he only speaks as a business man? of course I have to pay him to do all these. Its difficult to gauge a genuine intention

what should I do in the mean time plz? I dont know if HMRC would respond quite quickly and CW would just fail me... not sure how much time I have in hands before a decision comes. I really want to find a courteous explanation for the omission of tax return I also phoned HMRC and they could not explain why i had 2 start dates without any ending dates! sounds rather strange... also no tax return filed, there was no reminder letter issued... I hope i can argue based on this fact!!

[masterpeas]

Refusal is inevitable in this application. I would suggest to post 2nd application within 14 days if your visa has expired. You will need to provide credible explanation in your 2nd application with documentary evidence that will demonstrate that it was an error between income declared to HO and HMRC. Its more of negligence in your case that does raise concerns about your character for not filing tax returns and an attempt to deceive HO for visa purposes only. Provide abundant information, explanation and copy of tax returns along with 2nd application to fight your case in court later. Chances are very slim.

thank you for your kind comments what made you think this case is "inevitable refusal"? I hope for god's mercy and miracle...

what can be a credible explanation please?? thats what I am struggling with as you said, pure negligence, but I need somthing more proven...

[varghesejim]

Self assessment is a personal issue, an accountant not informing you is not the accountants fault.

I'd say for £150/200 pa you're getting one seriously crap accountant, mine costs £1500 pa and he tells me everything, leaves no doubt as to my obligations, and checks I'm checking him since ultimately it's my head on the block, I sign the accounts, he's just my agent.

What I don't understand here is do you owe tax and why?

seriously?? cannot believe you pay that much pa, is it only for doing tax return?? your business case must be quite complicated then. never heard of that much fee for just tax return..

what do you not understnad plz? it looks like i owe tax, simply becuz no tax return filed....

I would say if you are in self employment like IT contracting 1500 per year for accountant is not that a big amount.

Yes, it depends on your situation. However paying 150 pounds for accountant is way too low for you to get even average service.

[ajyothi.asha]

seems mine is abit complicated. It comes under split years ,which needs to make a proper draft and submit. i know the terms and conditions. Has any one got visa who has LTD company and net profit not matching with home office bec it falls on split year

[paboluuk]

seems mine is abit complicated. It comes under split years ,which needs to make a proper draft and submit. i know the terms and conditions. Has any one got visa who has LTD company and net profit not matching with home office bec it falls on split year

Hi ajyothi.asha, it doesn't matter submitting company accounts for one full financial year or split years as long as you're matching figures. Yes, you need to work out bit hard to come to actual figures. Apparently, If the net amount is not matching with HO a/c then it would be a problem.

Thanks