Tax Paid First Year But Not in Second Year Earning Question

[JaySam]

Hi Guys,

I got my extension on 2011 on the basis of self employed and employed income. For that year I have paid the proper tax's 2010-2011. So Basically I have paid the tax on the income that was declared to UKBA.

How ever the next 2011-2012 year my income fell quite below. I did file my tax from my employment income and self employment income. All of the tax on that period was from my employment, none from self employment.

This year 2012-2013 my income will be as require my UKBA, of which I have paid the tax on time (I am now running a limited company & for that I have filed and Paid tax on accounting period and tax on salaries that I draw from my company).

Question: I have paid the exact tax on income shown to ukba when I got my initial application & I also know that you only have to show last 12 month out of 15 month period income, to get you extension, but does my tax history (Two year on Tier 1) effect in any way the decision of case worker ? e.g. like why was my income on first year was too low compare to the last time I got my extension.




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[JaySam]

Guys,

30 View and no Help ! Please any help or Opinion .....Thnx

[max2k12]

dont you think its so obvious that when you are applying for visa you earning is upto the point and when you got the visa (first time) the year after you tax gone down again, its a thought.

well to answer your question I would say yes they are looking every aspect to check.

so make sure you have valid reasons to back your statment.

[JaySam]

Hi Max,

Well is it wrong to save tax by legal ways of accounting's method's, most of the big corporation (e.g. Google, Coffee Costa, Amazon) or even the big earner celebrities pay little or no tax.

Plus when it come to my point at least if have paid some tax (Over £5000 through my employment and I’m not even including my national insurance contribution) in my first year on Tier 1 General. Also I have paid taxes accordingly when I got my extension to HMRC and when I’m going for my extension.

I don't see any reason for the objection from UKBA but again this is my point of view...

I have not broken any rule of UKBA as they are only concern is the last 12month earning not the whole period according to their own guidance’s.

[rfd]

HI JaySam,

For your extension are you going to declare yourself employed or self employed or both?

Speaking from personal experience I got my first Tier 1 on the basis of Employment and Self employment in 2010 (All taxes paid). Since then I got a new job and did not do lot of work as self employed.

For my extension in December i did not declared any income from Self Employment and was totally reliant on income from my job. In my case the case worker at PEO did not asked my any questions about previous income. The only question she asked me was if I am 'employed or self employed?' and that was it.

Thanks,

[JaySam]

Hi rfd,

I think I will be classified as employed I have two source of income.

1) From my First Job: Employment (Payslip)
2) From my own company which I’m 100 Share holder and director: Employment (Payslip) + Dividend

Previously I have a job and also my business structure was self employed for which I was registered with HMRC as Self Employed and was paying National Insrance.