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Corporate tax and citizenship

Posted: Sun Oct 01, 2023 11:43 am
by Yoyo77
Hi,
Asking for a friend!
My friend is due to apply for naturalisation but he has a corporate taxation delayed payment on his company; He has delayed paying the tax due to cash flow reasons and did not manage the finances well at the start as he does not have a lot of experience in setting a company. Will this affect his application? He has these two options on mind and wishes to go for the safest one:

1- wait until he gets paid from his client which will take a month or two (or more) and then consequently pay his HMRC debt then apply for his citizenship and make home office aware of that ?
2-apply now and send a clarification letter to home office explaining that he has debt with HMRC and he will pay it as soon he gets paid . ( this option will require from him agreeing a settlement plan with HMRC which he will need to add to his application)

Any other suggestion is also welcome

Thanks

Re: Corporate tax and citizenship

Posted: Sun Oct 01, 2023 12:12 pm
by alterhase58
If it's a limited company then it's the company's tax liability. However if he's self-employed on his own account and he owes tax and agrees a payment plan that's ok, it doesn't have to be disclosed as such. If he's taken to court by HMRC that may be a different story.

Re: Corporate tax and citizenship

Posted: Mon Oct 02, 2023 3:42 pm
by Yoyo77
Yes it make sense. Trying to convince him to apply but it seems he got paranoid with this and wants to pay off before applying!
Thank you for your help!

Re: Corporate tax and citizenship

Posted: Mon Oct 02, 2023 5:36 pm
by alterhase58
Yoyo77 wrote:
Mon Oct 02, 2023 3:42 pm
Yes it make sense. Trying to convince him to apply but it seems he got paranoid with this and wants to pay off before applying!
Thank you for your help!
If not seen already:
Friend may be interested in the "Good Character" guidance used by UKVI when assessing applicants:
https://assets.publishing.service.gov.u ... racter.pdf
There are some section about tax and financial behaviour.