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ILR - Tax return issue

Posted: Wed Nov 13, 2013 11:07 am
by Gringo
Hi guys,

I have an issue and would appreciate any help.
I will be applying for ILR SET(O) soon as a Tier 1 general migrant
Part of my earnings for the initial & extension T1 application were from self employment and I have paid tax for that income.

Timeline:
Applying ILR as Tier1 G migrant
T1 initial: Dec 2008 (in country)
T1 extension: Jan 2012

For the ILR application I am only planning to show my main income & no income from self employment

The trouble is the tax returns that were filed for both initial and extension application incomes, I erroneously declared expenses that were a bit more than what was mentioned in the accountants letter for both the tax returns, though its not a huge amount but my taxable income has reduced due to this & I may have paid less tax.

Do you think this might be an issue if HO checks the tax returns for previous years and finds the taxable income not matching the net profits declared?

Appreciate your help!

Re: ILR - Tax return issue

Posted: Thu Jan 02, 2014 4:45 pm
by gum
Hi,

Have you applied for your ILR yet? Can you update me the outcome please?

Thanks,

Re: ILR - Tax return issue

Posted: Thu Jan 02, 2014 9:51 pm
by Gringo
Hi, I have written to HMRC informing them of the issue, haven't heard from them yet, hopefully they will get back soon as I dont want to post my application.

Re: ILR - Tax return issue

Posted: Fri Jan 03, 2014 3:40 am
by montysingh
Hi Gringo

I know that you are now speaking to tax office and wants to resolve everything now, but taxation must be paid on time and not after 1-2 years, one of my friends had the same issue and even paying the taxes afterwards did not help him, still refused under deception.

So you might pay the taxes now and spend the money again on accountants but it will not help you and you will loose more money. But end of the day its your choice and you can still pay it.

Re: ILR - Tax return issue

Posted: Fri Jan 03, 2014 9:59 am
by Gringo
montysingh wrote:Hi Gringo

I know that you are now speaking to tax office and wants to resolve everything now, but taxation must be paid on time and not after 1-2 years, one of my friends had the same issue and even paying the taxes afterwards did not help him, still refused under deception.

So you might pay the taxes now and spend the money again on accountants but it will not help you and you will loose more money. But end of the day its your choice and you can still pay it.

thanks for the info, i paid all taxes on time, the tax owed now is less than £200 due to incorrect expenses filed by the accountant previously, thats what I am looking to rectify.

I have seen cases where taxes have not been paid at all and after the refusal, applicant cleared all the dues with HMRC, and at the appeal stage application was successful since all taxes were up to date at the time of hearing

Re: ILR - Tax return issue

Posted: Fri Jan 03, 2014 7:47 pm
by yasa
Gringo wrote:
montysingh wrote:Hi Gringo

I know that you are now speaking to tax office and wants to resolve everything now, but taxation must be paid on time and not after 1-2 years, one of my friends had the same issue and even paying the taxes afterwards did not help him, still refused under deception.

So you might pay the taxes now and spend the money again on accountants but it will not help you and you will loose more money. But end of the day its your choice and you can still pay it.

thanks for the info, i paid all taxes on time, the tax owed now is less than £200 due to incorrect expenses filed by the accountant previously, thats what I am looking to rectify.

I have seen cases where taxes have not been paid at all and after the refusal, applicant cleared all the dues with HMRC, and at the appeal stage application was successful since all taxes were up to date at the time of hearing
Just pay that £200. Nothing to worry about.

Re: ILR - Tax return issue

Posted: Sat Jan 04, 2014 5:34 pm
by benneviss
I have said earlier that it is now a days common for HO to ask for your tax history . We know that people had while applying for Tier-1 and extension had shown different income to HO and after approval of their visa declared reduced income to HMRC to avoid tax liability .

It is very tricky situation as you can reduce your tax liability by showing expenses and you might have done rightly so on the advise of your accountant however HO could see as a deception.

In my personal view , it is not a tax evasion or tax avoidance and it is therefore not a criminal offence . You can pay your tax with fine and clear your account . Having said that I do not think that any case worker will grant you a visa but you may have to go to the tribunal. If you present your case well before the judge it will go through .

I am not sure but they only check your last extension tax history . If you have paid that you seems to be ok.

Best thing to do is to pay any outstanding and get a letter from HMRC that no due remaining .

Re: ILR - Tax return issue

Posted: Thu Jan 09, 2014 12:09 am
by Scarlettt
This is useful information.

Any updates yet?

Re: ILR - Tax return issue

Posted: Fri Jan 17, 2014 10:29 pm
by Manka10
benneviss wrote:In my personal view , it is not a tax evasion or tax avoidance and it is therefore not a criminal offence . You can pay your tax with fine and clear your account . Having said that I do not think that any case worker will grant you a visa but you may have to go to the tribunal. If you present your case well before the judge it will go through
Dude...I don't mean to get personal or mean any offense but I guess you are giving "personal" opinion as well as talking on behalf of UKBA at the same time

No point in giving any personal opinions if you don't know or haven't experienced a similar situation

UKBA are obliged to reduce litigation costs and reduce the burden on judiciary at the same time, so if they feel their decision will be overturned, they would themselves approve the application with discretion

Also looking at the OPs scenario, the tax involved is negligible, everyone makes mistakes which can be rectified later

If the self employed income would have been £20,000 and tax is paid only on a fraction of that amount then UKBA would be worried and dig deeper

Re: ILR - Tax return issue

Posted: Sat Jan 18, 2014 8:21 pm
by benneviss
@Manka10 , you are right let us not make this one personal .

I note that you are a senior member on this forum and I appreciate your status; however my experience on immigration subject ... , will discuss some day somewhere over beer or coffee.

Re: ILR - Tax return issue

Posted: Sun Jan 19, 2014 11:21 am
by Gringo
Thanks for all the replies guys, HMRC haven't got back to me yet but I took a chance anyway and went to PEO last Friday, ILR was approved, more details here -> http://www.immigrationboards.com/indefi ... 56019.html

Re: ILR - Tax return issue

Posted: Sat Jun 27, 2015 12:01 pm
by jpat2002
Gringo wrote:Hi, I have written to HMRC informing them of the issue, haven't heard from them yet, hopefully they will get back soon as I dont want to post my application.
Hi
Do you know how long it takes for HMRC to get amend your tax return once you send all paperwork via post.?

Re: ILR - Tax return issue

Posted: Sat Jun 27, 2015 12:11 pm
by argus7
jpat2002 wrote:
Gringo wrote:Hi, I have written to HMRC informing them of the issue, haven't heard from them yet, hopefully they will get back soon as I dont want to post my application.
Hi
Do you know how long it takes for HMRC to get amend your tax return once you send all paperwork via post.?
I have seen cases where it has taken from 3 to 6 months. Also remember HMRC gets millions of letters each day and they have a major backlog. So unless they investigate the case they may take time to action and amendment.

Re: ILR - Tax return issue

Posted: Sun Sep 13, 2015 9:30 pm
by ilrvisanow
so, what was the outcome?

Re: ILR - Tax return issue

Posted: Sun Sep 13, 2015 9:43 pm
by Casa
Gringo wrote:Thanks for all the replies guys, HMRC haven't got back to me yet but I took a chance anyway and went to PEO last Friday, ILR was approved, more details here -> http://www.immigrationboards.com/indefi ... 56019.html
The outcome. :|

Re: ILR - Tax return issue

Posted: Tue Jan 05, 2016 12:23 am
by ILR_Applicant111
Hi Gringo,

Happy to hear your ILR was approved.

I'm in a similar situation as you are and was wondering if you could give me some advice as you've already been through the process.

I'm relatively new here and don't know if I can contact you through personal message or something?

Many thanks

Re: ILR - Tax return issue

Posted: Tue Jan 05, 2016 5:02 pm
by Gringo
ILR_Applicant111 wrote:Hi Gringo,

Happy to hear your ILR was approved.

I'm in a similar situation as you are and was wondering if you could give me some advice as you've already been through the process.

I'm relatively new here and don't know if I can contact you through personal message or something?

Many thanks
Thanks, whats your situation?