Disclosure of self employment

[deepblue]

Hi
I am confused about the section 3.2 in Good Character requirement. I am employed full time but also registered as self employed for past few years after naturalisation. Do I have tick both boxes in 3.2 Employed & Self-Employed?

I am slightly inclined not to mention self employment as i have work place employees as referees but also for the fact that I have incurred only losses for past 3 years and therefore not paid tax! Good character requires self employed to pay TAX and NI!! so this will be a problem for me! Should I close down my self employment business?

The problem is concealing information is also sufficient for UKBA to refuse applications?

My application is straight forward, ILR after 5 years WP and naturalisation application now after 3 years after ILR in 2010.

[John]

Do appreciate that UKBA will be checking the HMRC computer system. At the end of the form, the declaration you sign, you are authorising that.

So as regards Q3.2 I see no problem you ticking both "Employed" and "Self-Employed", and completing Q3.3 and Q3.4 with both sets of details.

Q3.5? Just enter your UTR. That will enable them to see both types of record.

If you only enter "Employed", then UKBA may be confused by the Self-Employment record that they find.

Class 2 NI for the Self-Employment? I presume you are not paying that, but do you hold an exemption certificate?

[deepblue]

Hi,

My main concern is that UKBA guidance requires payment of tax as good character requirement and I have had no profits at all in business only losses due to overheads and therefore not paid taxes for business self employment part of my returns. Secondly my HMRC returns for VAT & NI were delayed a few times resulting in demand for payment but no dues or fines unpaid or outstanding at all, all notices fully responded to and paperwork in order now. Only VAT surcharge scheme in operation at the moment whereby I pay 2% surcharge if I delay in my quarterly VAT returns.

NI - I hold a Small earnings exemption for the entire period. Was issued with a demand for payment of NI with a deadline but I got the certificate just after so all affairs settled & in order. No payments made.

Tax - I have filed self assessment regularly as required. However I have incurred only losses and therefore no profits or income tax paid on business earnings. I have paid income tax from my full time employment through PAYE system.

VAT - registered for VAT, have been delayed in filing returns several times but current as of now. I have never paid VAT again, more received a refund for business purchases. Received late notices several times and put on a surcharge period.


This blog quotes interoperation of Good Character requirement and I quote

Similarly, with regard to your finances and dealings with HMRC, the UKBA can make checks to ascertain that all of your financial liabilities are up to date and are current. Particularly where individuals are self-employed, the UKBA will want to see evidence that you are paying your taxes! If you are behind on your payments, or have not made any payments at all, the UKBA can look at this as an indication that you are not of ‘Good Character’.

Do appreciate that UKBA will be checking the HMRC computer system. At the end of the form, the declaration you sign, you are authorising that.

So as regards Q3.2 I see no problem you ticking both "Employed" and "Self-Employed", and completing Q3.3 and Q3.4 with both sets of details.

Q3.5? Just enter your UTR. That will enable them to see both types of record.

If you only enter "Employed", then UKBA may be confused by the Self-Employment record that they find.

Class 2 NI for the Self-Employment? I presume you are not paying that, but do you hold an exemption certificate?

[John]

My main concern is that UKBA guidance requires payment of tax as good character requirement

That is not so. There is no such requirement. There is no problem if the applicant for Naturalisation has never paid a penny of tax, for example if since coming to the UK they have always been a housewife (or househusband).

What there is, subtlety different, is a requirement to pay all tax (and NI)due on the income that the applicant has had since coming to the UK. But if the income is Nil, and thus the tax is Nil, that is not a problem.

[deepblue]

OK, thanks for that. One last question, does late VAT submissions or being subject to VAT surcharge count against GOOD CHARACTER requirement? My VAT account is fully up to date with no outstanding payments due but I have submitted my quarterly returns late a number of times over last 3 years?

My main concern is that UKBA guidance requires payment of tax as good character requirement

That is not so. There is no such requirement. There is no problem if the applicant for Naturalisation has never paid a penny of tax, for example if since coming to the UK they have always been a housewife (or househusband).

What there is, subtlety different, is a requirement to pay all tax (and NI)due on the income that the applicant has had since coming to the UK. But if the income is Nil, and thus the tax is Nil, that is not a problem.

[John]

I suggest you download Annex D, and have a look at that.

Whilst that mentions "Their financial affairs were not in appropriate order. For example, they have failed to pay taxes for which they were liable." at 1.3.c, I doubt that would cause you a problem.

[Amber]

See also, British Citizenship – Good Character Requirement FAQs (click).

[deepblue]

Thank you to all who have replied so far. I seek your advice on a train penalty fare (£20). Is this counted against good character? Do I have to declare this? I don't remember if it is more than 12 months.

[mycanal1]

Thank you to all who have replied so far. I seek your advice on a train penalty fare (£20). Is this counted against good character? Do I have to declare this? I don't remember if it is more than 12 months.

Yes, Declare. Even if you r in doubt declare it. Declaring will not harm but not declaring willl/might harm/refuse application.