Missing Company Tax Returns

Hello all,

Could you please go through this query and feedback on urgent basis?

Arrived in UK - Feb -2011
Worked as contractor - from July 2011 - Nov 2014
Permanent Employee - from Dec 2014 until now.

Last week I filed my PEO ILR application. Unfortunately I wasn't aware of that I need to produce last 5 years personal and company annual tax returns. I do have last 5 years P60s but missing annual company tax returns. For some reasons my accountant is also struggling to dig these out. I have been paying corporation tax as calculated by my accountant. I have got emails acknowledgment from bank for corporation tax returns.

Now I have been given 14 days to send out company tax returns to the home office. If in case my accountant fails to get these for me within 14 days time fame have I got any other option left to explore? I have been suggested to ask HMRC to post these out to me. Advisor at HMRC told me that they will require 3-4 weeks' time to post these documents to me.

Can I use emails acknowledgment to prove paying corporation tax?

Any other ideas / comments will be much appreciated.

Regards
AA

Hi

Under which category have you applied ?

It really surprises me that no accounts are available for the company for the last few years. Can you provide further information on whether the tax returns were filed with the HMRC. If not then what was the reason for that and who was at fault.

In case of delay in arranging the tax returns from the HMRC you could request additional time from the HO stating the reasons for the delay. HO usually has access to all HMRC and Companies House data and can dig every thing on their own. They might have failed in your case hence asking you to provide tax documents for last few years.

Seems there is more to this case... check with your accountant what really happened.

shiv_singh wrote:HO usually has access to all HMRC and Companies House data and can dig every thing on their own. They might have failed in your case hence asking you to provide tax documents for last few years.

It is not HO's responsibility to 'dig out' everything on their own. It is the applicant's responsibility to provide ALL documentation required. Set(O) form and guidance is clear on this.

OP is likely a Tier 1 General migrant and likely that his Tier 1 G has also expired by now unless he did an extension before the route closed.

Apologies I should have provided a bit more info on my case.
Yes I'm on Tier 1 general visa, leave expires on Aug 2017.
I have been in touch with HMRC this morning and queried about my dissolved company.

Agent on phone told me that
Since company is dissolved they can't look into the details.
They are happy with the company accounts and can't see anything wrong with it.

I believe reason why HO asked for tax return documents because they couldn't access accounts.

I understand that I should have had kept all info with me but this isn't the case at the moment. So I'm looking for help and hence this post.

@crewe

did you submit your personal tax return for every single tax year while you were director of the company ???
if yes then collect your personal tax document of each year, which is the summery of your personal incomes.

For tier-1 general the requirement is very simple, what is your personal earnings at the end (PAYE+dividend+self-emp+ others).

you can recheck that HO ask for only corporation tax document or they want your personal tax return document too. unfortunately corporation tax is the tax for the business, you and the company both is different entity! If I am a director of a company Abc limited and its paid corporation tax on £100K profit. It does not mean I earn 100K on that year (I could be only director but i might hold only 10% share). From Company income I can claim as personal income when I take as salary/dividend/etc and need to declare on personal tax return too.

if you did not submit personal tax returns, then I think it would be very hard for you to overcome ignoring this if they notice it already.

Dear Members,

Thanks very much for your reply. Could you please feedback on my response below.

did you submit your personal tax return for every single tax year while you were director of the company ???

Yes I did. All P60s are all available. Unfortunately I didn't had these in hand when appeared for PEO last week.
[/b]

if yes then collect your personal tax document of each year, which is the summery of your personal incomes.

For tier-1 general the requirement is very simple, what is your personal earnings at the end (PAYE+dividend+self-emp+ others).

I switched to a permanent role in company 18 months ago so all income earned is pre-taxed (PAYE). My understanding is that for ILR application I just need to provide last 12 months personal income (salary slips) to claim earnings. Could you please confirm if I need to send all last 5 years income earned which is mixed of PAYE + Dividend.

I've been also in touch with a solicitor. He asked me to get SA302 form and declare earnings earned during last 5 years. He says that although at some point (from Aug -2011 till Dec 2014) my income was (PAYE + Dividend) I still need to prove it that I have paid tax on dividend earned. This is where I'm totally confused. I was under impression that dividend is taxed as part of corporation tax.

you can recheck that HO ask for only corporation tax document or they want your personal tax return document too. unfortunately corporation tax is the tax for the business, you and the company both is different entity! If I am a director of a company Abc limited and its paid corporation tax on £100K profit. It does not mean I earn 100K on that year (I could be only director but i might hold only 10% share).

From Company income I can claim as personal income when I take as salary/dividend/etc and need to declare on personal tax return too.

When you earn salary as PAYE + Dividend do you also have to declare it on personal tax return? If yes then I have clearly missed it. Is it possible to amend my tax returns I submitted from 2011 - 2013?


if you did not submit personal tax returns, then I think it would be very hard for you to overcome ignoring this if they notice it already.

to make it simple, they want to see that the previous amounts which you claim points to get initial visa and extension; this amount taxed/declared or not. (they ask for complete 5 years but none facing issue even if less income on the middle years, only the amount shown in earlier application is declared to HMRC or not).

Crewe wrote: Dear Members,


I've been also in touch with a solicitor. He asked me to get SA302 form and declare earnings earned during last 5 years. He says that although at some point (from Aug -2011 till Dec 2014) my income was (PAYE + Dividend) I still need to prove it that I have paid tax on dividend earned. This is where I'm totally confused. I was under impression that dividend is taxed as part of corporation tax.


When you earn salary as PAYE + Dividend do you also have to declare it on personal tax return? If yes then I have clearly missed it. Is it possible to amend my tax returns I submitted from 2011 - 2013?

If you have PAYE+dividend+... income then all income must be declared on the tax return. So for initial and extension application if you claimed earnings PAYE+Dividend then they will expect SA302 for the relevant tax years as this is the summary of your annual return.

what I understand that there is no issue with your corporation tax (also note corporation tax is the tax which the company paid on its profit not you), but you did not declare the dividend on your annual return! case worker found less income (than claimed on earlier application) on your annual return.

yes you might be able the revise the return contacting HMRC for previous year but it will take time (few months as members experience) also any amendment just before/after ILR application also give the impression to the case worker that this done to get the ILR! you can see the posts on this forum for T1G-ILT and most issues with this.

you can get professional help to decide what you should do but if you do not find any strong option then may be you can submit the tax return for those years again (by post) and can send copy of the returns to HO and explain why/how you missed the dividend income on annual return in the first place. This may not change their view but at least it will be something you have corrected it as soon as you notice it. Good luck