BC Application and Tax

Hi

I got my ILR in April 2012 on completion of 5 years Tier 1. I showed my salary for year ending 31st March 12 as 35000 ( Accountant letter and all that ). I haven't submitted my tax return to HMRC.

Tax return is due on 31st Januray 2013. Can I show less salary , say 20 K - 22 K and pay around 2500 tax. Will it affect my BC application when I apply for that in April 2013
Please advise
Thanks
Rahul

There should be no negative impact on your Application due to this. Ho do not do granular checks

Rahul19 wrote:Hi

I got my ILR in April 2012 on completion of 5 years Tier 1. I showed my salary for year ending 31st March 12 as 35000 ( Accountant letter and all that ). I haven't submitted my tax return to HMRC.

Tax return is due on 31st Januray 2013. Can I show less salary , say 20 K - 22 K and pay around 2500 tax. Will it affect my BC application when I apply for that in April 2013
Please advise
Thanks
Rahul

Rahul19 wrote:Hi

I got my ILR in April 2012 on completion of 5 years Tier 1. I showed my salary for year ending 31st March 12 as 35000 ( Accountant letter and all that ). I haven't submitted my tax return to HMRC.

Tax return is due on 31st Januray 2013. Can I show less salary , say 20 K - 22 K and pay around 2500 tax. Will it affect my BC application when I apply for that in April 2013
Please advise
Thanks
Rahul

Falsifying your tax records is a criminal offence, if you lied about your income on your ilr application then theoretically this could be revoked and thus citizenship revoked at a later point. This is highly unlikely but it does not show good character and you're applying to be British so should be paying taxes fairly. If you're struggling to pay a tax bill ring Hmrc and ask to pay over 3 months due to hardship.

D4109125 wrote: Falsifying your tax records is a criminal offence, if you lied about your income on your ilr application then theoretically this could be revoked and thus citizenship revoked at a later point. This is highly unlikely but it does not show good character and you're applying to be British so should be paying taxes fairly. If you're struggling to pay a tax bill ring Hmrc and ask to pay over 3 months due to hardship.

D4109125 Please don't give advise if you are not sure about the matter. Rahul19 sebmits tax returns suggesting he is self employed. When you are self employed you choose how much salary you want to draw and there is no falsifying business here... He can choose to draw dividands on which he does not need to pay income tax!!

Rahul19, there is no limit for income or income tax for that matter. The home office is only concerned with tax affairs being in order.

Bottomline is, no, this should not affect your application

Rahul19, your company makes its accounts up to 31 March each year? And now you are considering changing the company accounts to 31 March 2012?

Haven't the accounts of the company already been filed at Companies House? And what about the payment of Corporation Tax which was due on 1 January 2013?

Are you effectively saying that the filed accounts were wrong, and the wrong amount of Corporation Tax was paid?

And what about the company's payments to HMRC of PAYE/NI?

You may not have filed your Self Assessment return for 2011-2012, but you cannot ignore the tax affairs of your company.

BigSam wrote:

D4109125 wrote: Falsifying your tax records is a criminal offence, if you lied about your income on your ilr application then theoretically this could be revoked and thus citizenship revoked at a later point. This is highly unlikely but it does not show good character and you're applying to be British so should be paying taxes fairly. If you're struggling to pay a tax bill ring Hmrc and ask to pay over 3 months due to hardship.

D4109125 Please don't give advise if you are not sure about the matter. Rahul19 sebmits tax returns suggesting he is self employed. When you are self employed you choose how much salary you want to draw and there is no falsifying business here... He can choose to draw dividands on which he does not need to pay income tax!!

Rahul19, there is no limit for income or income tax for that matter. The home office is only concerned with tax affairs being in order.

Bottomline is, no, this should not affect your application

I think you could benefit from a book called accounting for dummies. Unless you have viewed his company accounts it is silly of you to comment on whether a dividend would be legal or not. Moreover, if he has submitted his company tax records saying £32xxx income and then submits self assessments saying £8500 less I think you'll find the Hmrc will have something to say!

Thank you very much everybody...Really appreciate...

Actually I have been self employed( sole trader). Not registered with the company house..Can I show couple of invoices genuinely recalled and hence bringing down the net profit for the year ending 31st March 2012.

I have to file self assessment and pay my tax for that ( ending March 2012 ) year by 31st January 2013..

Thanks again..

That is an accounting matter. You need to discuss with your accountant.

The problem was that you used the word "salary" which is totally inappropriate to someone who is self-employed.

John wrote:That is an accounting matter. You need to discuss with your accountant.

The problem was that you used the word "salary" which is totally inappropriate to someone who is self-employed.

Thanks John, My fault..

So , if accountant says, it can be done, I should be ok..?
Please confirm..
Thanks

You posted :-

I got my ILR in April 2012 on completion of 5 years Tier 1. I showed my salary for year ending 31st March 12 as 35000 ( Accountant letter and all that ). I haven't submitted my tax return to HMRC.

So when you applied for your ILR the accounting period had only just ended, and later some more information came to light so the net profit was adjusted? Or might be?

When you applied for your ILR, you needed to show a minimum income? Are you now proposing that your tax return shows less than that minimum? If yes, that might be dangerous, at least if you intend to apply for Naturalisation. Why? When you apply for Naturalisation you authorise UKBA to examine the HMRC records.

It might be safer to take the reduction in income in 2012-2013.

John wrote:You posted :-

I got my ILR in April 2012 on completion of 5 years Tier 1. I showed my salary for year ending 31st March 12 as 35000 ( Accountant letter and all that ). I haven't submitted my tax return to HMRC.

So when you applied for your ILR the accounting period had only just ended, and later some more information came to light so the net profit was adjusted? Or might be?

When you applied for your ILR, you needed to show a minimum income? Are you now proposing that your tax return shows less than that minimum? If yes, that might be dangerous, at least if you intend to apply for Naturalisation. Why? When you apply for Naturalisation you authorise UKBA to examine the HMRC records.

It might be safer to take the reduction in income in 2012-2013.

Thanks John for your time and concern.

Really appreciate.