Page 1 of 1
Tax settlement with HMRC and settle status
Posted: Wed Jul 04, 2018 1:28 pm
by Ladylondon
Hi,
I’m European and already have a permanent residency card that I will need to exchange for settled status soon.
I’m worried with my tax affairs. I used some umbrella companies HMRc considers as tax avoidance and I’m now talking to HMRC to reach a settlement and pay what I owe.
I read a lot about the Home Office using the section 322.5 to refuse visas and ask people to leave the country.
Should I delay the settlement and ask for settled status or even citizenship ASAP ?
Any advices appreciated !
Thank you
Re: Tax settlement with HMRC and settle status
Posted: Wed Jul 04, 2018 1:46 pm
by alterhase58
Recommend you finalise your settlement with HMRC whatever happens. The instances you are referring to relate to ILR under current UK regulations, as I understand it. Settled Status is not a visa. As you say you will just exchange your PR with the new status. Of course you can apply for citizenship now if you held PR for a year. Tax avoidance is not a crime.
Re: Tax settlement with HMRC and settle status
Posted: Wed Jul 04, 2018 2:27 pm
by Ladylondon
Thank you
Re: Tax settlement with HMRC and settle status
Posted: Thu Jul 05, 2018 8:30 am
by Richard W
alterhase58 wrote: ↑Wed Jul 04, 2018 1:46 pm
Settled Status is not a visa. Tax avoidance is not a crime.
I fear Ladylondon meant 'tax evasion', not 'tax avoidance'.
Settled status *will* be a form of (indefinite) leave to remain, so in principle rule 322 may be applicable. However, I think we can extrapolate from the agreement on criminality, especially if Ladylondon is an EU national. If the tax evasion would not justify excluding an EU national under the current free movement directive, then it will not be grounds to refuse settled status. The stricter provisions of the Immigration Rules on criminality only come into play after Brexit.
Re: Tax settlement with HMRC and settle status
Posted: Thu Jul 05, 2018 8:58 am
by alterhase58
Richard W wrote: ↑Thu Jul 05, 2018 8:30 am
I fear Ladylondon meant 'tax evasion', not 'tax avoidance'.
OP has PR now which can be exchanged for "settled", well within the transition period.
Re: Tax settlement with HMRC and settle status
Posted: Thu Jul 05, 2018 8:25 pm
by Richard W
alterhase58 wrote: ↑Thu Jul 05, 2018 8:58 am
Richard W wrote: ↑Thu Jul 05, 2018 8:30 am
I fear Ladylondon meant 'tax evasion', not 'tax avoidance'.
OP has PR now which can be exchanged for "settled", well within the transition period.
The EU Settlement Scheme will operate under the Immigration Rules. We may see the scope of Immigration Rule 322 modified to exclude the EU Settlement Scheme.