Tax Calculation

[Jay_Hants]

I hope someone can help, i have been told because of covid19 the tax year 2020-2021 i will no longer be able to use these accounts as a sole trader for an application for a spouse visa, i must use accounts from 2019-2020, there saying this because of government self employment help scheme and my 2020-2021 accounts are not classed as a full financial year. I hope this makes sense and have posted in the right area.

Jason

[zimba]

What is your source ?? The following sources do not show such restriction

The UKVI page: https://www.gov.uk/guidance/coronavirus ... -residents
Guide: https://assets.publishing.service.gov.u ... .0-ext.pdf

[Jay_Hants]

Hello and thank you for you response here is where i got that information from.
Third party immigration advisor weblink removed by moderator

[zimba]

Hello and thank you for you response here is where i got that information from.
Third party immigration advisor weblink removed by moderator

Do not post third party links as it is not allowed. You need to provide the official source from UKVI or the immigration rules to support your claim

[Jay_Hants]

i am very sorry i am new to this, i have no idea about there source.

[Jay_Hants]

Good evening i am self employed and will be applying for my wife to come to the UK from Ukraine, two questions i am going through the earnings route ie £18.600 profit in one financial year, i always do my own tax returns as it very easy for me, but i understand i will need an accountant to verify my accounts i am self employed, registered with HMRC but i understand that the accountant must be affiliated with some government organisation, question one is can you please tell me what are the accredited organisations for the accountant ? and question two is what do i have to provide reference my accounts, i am a sole trader, i am not vat registered as i don't earn £75000 + and i am not registered with company house as being a sole trader i do not need to be, so i have never had audited or unaudited accounts. sorry if this is long winded .

[zimba]

These are the professional bodies:

Association of Authorised Public Accountants (AAPA)
Association of Chartered Certified Accountants (ACCA)
Chartered Accountants Ireland (CAI)
Institute of Chartered Accountants in England and Wales (ICAEW)
Institute of Chartered Accountants of Scotland (ICAS)

You must read THE OFFICIAL GUIDE and provide the evidence as described
Refer to Sole trader, partner or franchise – specified evidence

[Jay_Hants]

Can you point me in the right direction to find the relevant information and specific evidence ? for a sole trader. many thanks.

[TODMATT]

explanation from page 55

https://assets.publishing.service.gov.u ... .0-ext.pdf

Evidence required

see paragraph 7

https://www.gov.uk/guidance/immigration ... d-evidence

[Jay_Hants]

Thank you so much.

[Jay_Hants]

These are the professional bodies:

Association of Authorised Public Accountants (AAPA)
Association of Chartered Certified Accountants (ACCA)
Chartered Accountants Ireland (CAI)
Institute of Chartered Accountants in England and Wales (ICAEW)
Institute of Chartered Accountants of Scotland (ICAS)

You must read THE OFFICIAL GUIDE and provide the evidence as described
Refer to Sole trader, partner or franchise – specified evidence

I think the details of who is a government affiliated member to provide accounts for sole traders/business owners is slightly out of date, as i have had a meeting with an accountant who is registered to as a government affiliated member and his accreditation is CIMA, (The Charted Institute of management Accountants) but it is not on your list and there are others accountant institutions also not on you list. Please this is not a criticism i understand you can not check everything. This information is on the government website.

[zimba]

The list I posted is not exhaustive

[TODMATT]

These are the professional bodies:

Association of Authorised Public Accountants (AAPA)
Association of Chartered Certified Accountants (ACCA)
Chartered Accountants Ireland (CAI)
Institute of Chartered Accountants in England and Wales (ICAEW)
Institute of Chartered Accountants of Scotland (ICAS)

You must read THE OFFICIAL GUIDE and provide the evidence as described
Refer to Sole trader, partner or franchise – specified evidence

I think the details of who is a government affiliated member to provide accounts for sole traders/business owners is slightly out of date, as i have had a meeting with an accountant who is registered to as a government affiliated member and his accreditation is CIMA, (The Charted Institute of management Accountants) but it is not on your list and there are others accountant institutions also not on you list. Please this is not a criticism i understand you can not check everything. This information is on the government website.

To be fair to ZImba, He did refer you to specified evidence which had all this details as mentioned above in paragraph 7 for self employed.

bb)" If the business is not required to produce annual audited accounts, unaudited accounts for the last full financial year and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006) or who is a member of the Institute of Financial Accountants, The Association of Authorised Public Accountants, The Chartered Institute of Public Finance and Accountancy, The Chartered Institute of Management Accountants, the Association of International Accountants and The Association of Accounting Technicians;"

[Jay_Hants]

in now way was my post a criticisms just an observation, today i sat down with my CIMA accountant, and even he said its a mine field.

[Jay_Hants]

Really sorry if this has been asked before, just a very very simple question, my accountant is doing my tax return, i will be using this return to apply for my wife and later in the year my step daughter to live in the UK, so my question is this hypothetically my profits for the tax year 2020/2021 was £32,000 but after my personnel allowance of £12500, i am only paying tax on £20,000, do they look at take the £32,000 as my profit or the £20,000 when calculating if i meet the financial requirements ?.

[zimba]

Really sorry if this has been asked before, just a very very simple question, my accountant is doing my tax return, i will be using this return to apply for my wife and later in the year my step daughter to live in the UK, so my question is this hypothetically my profits for the tax year 2020/2021 was £32,000 but after my personnel allowance of £12500, i am only paying tax on £20,000, do they look at take the £32,000 as my profit or the £20,000 when calculating if i meet the financial requirements ?.

They look at gross income not profits

[TODMATT]

Really sorry if this has been asked before, just a very very simple question, my accountant is doing my tax return, i will be using this return to apply for my wife and later in the year my step daughter to live in the UK, so my question is this hypothetically my profits for the tax year 2020/2021 was £32,000 but after my personnel allowance of £12500, i am only paying tax on £20,000, do they look at take the £32,000 as my profit or the £20,000 when calculating if i meet the financial requirements ?.

Net profit.