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ILR - with outstanding tax liability

Posted: Thu Jul 07, 2011 10:07 am
by krssubbu
Hi,

my ILR is due in Jan 2012. I have received letters from taxman saying i owe tax for previous 2 years by about 2000 pounds. but due to visa expense and other stuff i cant pay that now..planning to pay next year after visa. is this alright for ILR or will this affect it ?

Thanks

Posted: Thu Jul 07, 2011 10:37 am
by sonya24
hi you should clear all your outstanding balance with hmrc otherwise they will reject your application and you will loose your fees i applied at birmingham peo as a hsmp dependant and my mum was self employed they confirmed with hmrc if she had any outstanding balance or not they even asked her for her 5 years hmrc statements,Are you employed or self employed?

Posted: Thu Jul 07, 2011 11:14 am
by krssubbu
i am employed.i received a letter from inland revenue saying i owe tax for previoyus years (which i dont know how as they have been taking quite a big amout of tax every month - but had 2 jobs for sometime...not sure if this happened during this time )...but i have all my p45 and p60...just worried will this affect it..if it does how do i resolve it..i have my ilr in jan 2012

Posted: Thu Jul 07, 2011 11:23 am
by sonya24
ok your category is diffrent from mine.if you are employed it is your employers responsibilty to pay all your tax and national insurance i will suggest you to contact hmrc and let them know that you are not self employed and you dont know wht there's an outstanding balance showing on your account they will definately sort out something for you.if you have got your your bank statements showing your salary and all the p 60 and payslips you can aplly at peo but i will also suggest you to call hmrc so they can note down everything just incase homeoffice contacts them.

Posted: Thu Jul 07, 2011 11:31 am
by adamboston
krssubbu wrote:i am employed.i received a letter from inland revenue saying i owe tax for previoyus years (which i dont know how as they have been taking quite a big amout of tax every month - but had 2 jobs for sometime...not sure if this happened during this time )...but i have all my p45 and p60...just worried will this affect it..if it does how do i resolve it..i have my ilr in jan 2012
You need to ring HMRC or call in to their local Tax Office (ideally you should ask for an appointment with one of their staff). Ask them why you have received this bill when you have already paid the tax. If you were on PAYE (means your employer has been deducting tax) then not sure why you have to pay £2000 unless you have received huge car mileage allowance / vouchers or similar allowances on the top of your earnings.

When you contact the HMRC do show them all your P60s and P45s to confirm you have been paying tax in last two years, also compare your previous payslips and your P60s/P45s to check if the tax code are correct.

If these letters are the result of the recent Taxman blunder then again I suggest you to speak to Tax Office asap.

Whatever the reason is you need to either clear or sort/challenge/settle any outstanding balance before you apply for ILR, as sonya24 has rightly suggested.

I wish you luck mate.

Adam

Posted: Thu Jul 07, 2011 1:09 pm
by krssubbu
thanks for all your replies..

i think this confusion started because i had 2 jobs for a while in between...bt i dont have the p45 or p60 for these..i will contact the hmrc but just wondering since i am employed will this really affect my ILR.

anyone expericed similar issues ? any senior members ?

Thanks

Posted: Thu Jul 07, 2011 1:36 pm
by sonya24
are you on workpermit or hsmp??

Posted: Thu Jul 07, 2011 1:57 pm
by krssubbu
hsmp then converted now to tier 1

Posted: Thu Jul 07, 2011 11:58 pm
by Sushil-ACCA
krssubbu wrote:thanks for all your replies..

i think this confusion started because i had 2 jobs for a while in between...bt i dont have the p45 or p60 for these..i will contact the hmrc but just wondering since i am employed will this really affect my ILR.

anyone expericed similar issues ? any senior members ?

Thanks
1.UNpaid balace should not be a issue so long u have made arrangements with HMRC to pay in installmets

2. this self employed income if any to do with yr visa threshold than u should make arrangement with HMRC before GOING FOR ilr

3. if this icmoe is nothing to do with ILR threshold than no way it have any impact on yr ilr

This is very interesting tread for those got t1 and extn on self employed basis but not paid taxes , need to get payment arranged with hmrc otherwise bleak future.

keep positing

Posted: Fri Jul 08, 2011 9:47 am
by krssubbu
Thanks sushil....just wondering if self employed its a major problem...but i am employed..so will this affect me also ?
second thing if i arrange to pay in installments with HRMC, will this be fine ? do i need to mention on covering letter while goinjg for ILR?

third thing, is there a chance, i can get any discounts with hmrc ?

Thanks

Posted: Fri Jul 08, 2011 11:26 am
by hsmp_victory
Hi, Just my two bits here. Has the HMRC asked you to pay back the taxes on the tax calculation they sent you? I applied for citizenship while i had to pay HMRC 6000 pounds over 5 years period and it still got approved. I received these letter about 6 months back but i still havent done anything or HMRC hasnt asked me to pay it back either although it was in the newspaper that they will soon start asking people to pay back the underpaid tax. I am employee and NOT self employed. It was entirely HMRC fault for not deducting proper tax,even when i didn't hide anything from them. Now they can ask you to pay it back but if they haven't asked for it to be paid back straight away. I wouldn't be worried about it.
On the other hand if you paid less tax because of not declaring right information to HMRC e.g. doing two jobs etc. and not mentioning it to HMRC, in which case it is your fault. Then HMRC would ask you to pay it back immediately.

Posted: Fri Jul 08, 2011 1:17 pm
by Sushil-ACCA
hsmp_victory wrote:Hi, Just my two bits here. Has the HMRC asked you to pay back the taxes on the tax calculation they sent you? I applied for citizenship while i had to pay HMRC 6000 pounds over 5 years period and it still got approved. I received these letter about 6 months back but i still havent done anything or HMRC hasnt asked me to pay it back either although it was in the newspaper that they will soon start asking people to pay back the underpaid tax. I am employee and NOT self employed. It was entirely HMRC fault for not deducting proper tax,even when i didn't hide anything from them. Now they can ask you to pay it back but if they haven't asked for it to be paid back straight away. I wouldn't be worried about it.
On the other hand if you paid less tax because of not declaring right information to HMRC e.g. doing two jobs etc. and not mentioning it to HMRC, in which case it is your fault. Then HMRC would ask you to pay it back immediately.

Tax payment is citizens obligation towards state

if thee is discrpency HMRC will sort it out even after 10 yrs ,

if Visa obtained by showing income and no tax paid on that income is amount to obtaing visa by fraud .

it is applicants duty to pay all taxes not HMRC duty to collect

Posted: Fri Jul 08, 2011 2:46 pm
by imranb
Sushil-ACCA wrote:
hsmp_victory wrote:Hi, Just my two bits here. Has the HMRC asked you to pay back the taxes on the tax calculation they sent you? I applied for citizenship while i had to pay HMRC 6000 pounds over 5 years period and it still got approved. I received these letter about 6 months back but i still havent done anything or HMRC hasnt asked me to pay it back either although it was in the newspaper that they will soon start asking people to pay back the underpaid tax. I am employee and NOT self employed. It was entirely HMRC fault for not deducting proper tax,even when i didn't hide anything from them. Now they can ask you to pay it back but if they haven't asked for it to be paid back straight away. I wouldn't be worried about it.
On the other hand if you paid less tax because of not declaring right information to HMRC e.g. doing two jobs etc. and not mentioning it to HMRC, in which case it is your fault. Then HMRC would ask you to pay it back immediately.
Tax payment is citizens obligation towards state

if thee is discrpency HMRC will sort it out even after 10 yrs ,

if Visa obtained by showing income and no tax paid on that income is amount to obtaing visa by fraud .

it is applicants duty to pay all taxes not HMRC duty to collect
Sushil,

Can I give you some advice. The way you have designed your signature – ‘Sushil Practising -ACCA’, it appears as if ‘Practising’ is your surname.

Also you need to use spell check before you submit your posts. For a ‘Guru’, your posts are full of spelling mistakes, which does not make for good reading. It tends to make your posts & responses appear ambiguous. Please don’t mind, this is just honest feedback, not a personal issue against you at all.

Posted: Fri Jul 08, 2011 4:04 pm
by krssubbu
thanks guyz for your replies.

hsmp_victory - i just received the letter but not sure if hmrc has asked me to pay. i think it just said overdue by 2000 pounds but cant remember anything else..can i know when you got your hsmp approved ? and did you also owe hmrc and got the ILR ?

i had two jobs for a while and i just didnt check the tax code. but i think i was getting BR for a while and then when i changed my main job then it got reverted back? (so even i am confused) - now i dont know what to do as i cant pay this amount now (huge for me) - will ILR ppl hav records of HMRC ?

Thanks

Posted: Fri Jul 08, 2011 6:48 pm
by Casa
imranb, did you have something to contribute to the thread, or did you simply feel you would like to give a brief lesson in the art of spelling and punctuation?
If so, this could have been sent by a PM, unless of course you wanted to make a point openly on your superior use of the English language.
Many of us give our time freely on this forum, often in the middle of a busy day in the office or while juggling time with our families. Stopping to worry about whether something may not be grammatically correct, or running a spell check, shouldn't be necessary.
You can run through that if you have time..I'm sure you'll find something.

Posted: Fri Jul 08, 2011 6:52 pm
by Casa
krssubbu, can you have an accountant who specialises in tax check through this for you? You may find you don't owe as much as the HMRC are claiming. They've been held up in the news this year for demanding overdue tax for a great many people where it hasn't in fact been owed and has been the mistake of the HMRC.

Posted: Fri Jul 08, 2011 7:01 pm
by sun_ilr
sonia, you may find it rule, but please stop scarring people on the forum. If you are self employed and not paying tax then it can be a problem . But if you are employed and your tax code is incorrect whch result to over or underpayment of tax, Then its not the persons fault.

In regards to how this can be happened, here is the example which ithink is the reason for above: Any one doing 2 jobs should have tax code 745 for the first job and BR code for second job. if you have used code 745 L for both jobs then you are claiming tax free income twice. In that case it will be underpaid.

Most of the people had same problem between 2008 till 2010.

In regards to visa or ILR, if you are underpaid and ignore the letter then it can be a probem otherwise normally HMRC will add that money to be taken of your wages from april 2011 in next 12 month through higher tax code. i can explain how but then it will be a long reply.

If you are paying back on the dd or have already spoken to hmrc to pay it back over 3 to 5 years then either way i cant see any problem. because you are working and paying tax. but due to their error you end up paying less.

Stop worring mate, you will be alright.

good luck.

Posted: Sat Jul 09, 2011 9:24 am
by jami
tax compliance is reflection of good character which is a requirement for ILR/nationality.
Hence one should be vigilant and any tax notice should be responded and issue be resolved

Posted: Tue Jul 12, 2011 9:39 am
by krssubbu
thanks all. i willspeak to Hmrc to see what they have to say

Posted: Thu Mar 15, 2012 1:43 am
by osteophytes
Casa wrote:imranb, did you have something to contribute to the thread, or did you simply feel you would like to give a brief lesson in the art of spelling and punctuation?
If so, this could have been sent by a PM, unless of course you wanted to make a point openly on your superior use of the English language.
Many of us give our time freely on this forum, often in the middle of a busy day in the office or while juggling time with our families. Stopping to worry about whether something may not be grammatically correct, or running a spell check, shouldn't be necessary.
You can run through that if you have time..I'm sure you'll find something.
:D