TIER 1 GENERAL - EXTENSION REFUSED

[arif1652]

HI,

APPLIED FOR TIER 1 GENERAL EXTENSION ON 22ND JUNE 13 WHILE I AM IN THE UK/

THE REFUSAL LETTER RECEIVED TODAY.

I AM QUOTING THE EXACT WORDS

"YOU HAVE CLAIMED 20 POINTS FOR PREVIOUS EARNINGS UNDER PARAGRAPH 245CA(C) AND APPENDIX A OF THE IMMIGRATION RULES.

YOU HAVE PROVIDED A HMRC P11D EXPENSES AND BENEFITS 2012-2013 FORM IN ORDER TO CLAIM £3779.00 AS A CAR BENEFIT FOR THE PERIOD OF 30 APRIL 2012 UNTIL 5 APRIL 2013

AS STATED ON APPENDIX A 23 (E) allowances (such as accommodation, schooling or car allowances) which form part of an applicant's remuneration package and are specified in the applicant's payslips.

AS THE ALLOWANCES YOU ARE CLAIMING IS NOT SPECIFIED IN YOUR PAY SLIPS FROM ABCD LTD IT CAN NOT BE TAKEN INTO CONSIDERATION.

THE REMINDER OF THE PREVIOUS EARNINGS YOU HAVE CLAIMED WERE CORROBORATED TO TOTAL £31,373.62

-------------------------------

NOW, I ASKED OUR COMPANY ACCOUNTANT AND I WAS INFORMED THAT THE P11D FORM WAS SENT TO HMRC THIS JUNE 13 AND AFTER THEY HAVE POPULATED MY ACCOUNT THEY WILL ISSUE A NEW TAX CODE FOR ME AND THAT WILL INDICATE THAT I RECEIVE CAR BENEFIT. AND I WIL BE PAYING TAX FOR THE CAR BENEFIT FOR THE SPECIFIED PERIOD.

WHERE DID I GO WRONG? WHAT CAN I DO? I HAVE ASKED MY EMPLOYER AND THEY ISSUED ME A LETTER VERIFYING THAT I HAD CAR BENEFIT FOR BUSINESS AND PERSONAL USAGE SINCE 29TH APRIL 12 TILL DATE AND IN ACCORDANCE TO THE P11D FORM, THE CASH EQUIVALENT OF THE CAR BENEFIT IS £3779.00 AND IT IS TAXABLE.

DO i APPEAL OR REQUEST FOR ADMINISTRATIVE REVIEW? IT IS SIMPLY A MATTER OF TIME GAP. I DID HAVE THE CAR AND ONCE HMRC HAD A CHANCE TO UPDATE MY ACCOUNT WITH THE INFORMATION PROVIDED TO HMRC BY MY EMPLOYER, THE NEWLY ISSUED TAX CODE WILL BE IN MY SALARY SLIP AND THIS WILL " BE SPECIFIED IN THE PAYSLIP".

WHAT DO I DO? WHAT WILL HOME OFFICE NEED OR WANT TO OVERTURN THEIR DECISION?

[HSK Accountancy Services]

HI,

APPLIED FOR TIER 1 GENERAL EXTENSION ON 22ND JUNE 13 WHILE I AM IN THE UK/

THE REFUSAL LETTER RECEIVED TODAY.

I AM QUOTING THE EXACT WORDS

"YOU HAVE CLAIMED 20 POINTS FOR PREVIOUS EARNINGS UNDER PARAGRAPH 245CA(C) AND APPENDIX A OF THE IMMIGRATION RULES.

YOU HAVE PROVIDED A HMRC P11D EXPENSES AND BENEFITS 2012-2013 FORM IN ORDER TO CLAIM £3779.00 AS A CAR BENEFIT FOR THE PERIOD OF 30 APRIL 2012 UNTIL 5 APRIL 2013

AS STATED ON APPENDIX A 23 (E) allowances (such as accommodation, schooling or car allowances) which form part of an applicant's remuneration package and are specified in the applicant's payslips.

AS THE ALLOWANCES YOU ARE CLAIMING IS NOT SPECIFIED IN YOUR PAY SLIPS FROM ABCD LTD IT CAN NOT BE TAKEN INTO CONSIDERATION.

THE REMINDER OF THE PREVIOUS EARNINGS YOU HAVE CLAIMED WERE CORROBORATED TO TOTAL £31,373.62

-------------------------------

NOW, I ASKED OUR COMPANY ACCOUNTANT AND I WAS INFORMED THAT THE P11D FORM WAS SENT TO HMRC THIS JUNE 13 AND AFTER THEY HAVE POPULATED MY ACCOUNT THEY WILL ISSUE A NEW TAX CODE FOR ME AND THAT WILL INDICATE THAT I RECEIVE CAR BENEFIT. AND I WIL BE PAYING TAX FOR THE CAR BENEFIT FOR THE SPECIFIED PERIOD.

WHERE DID I GO WRONG? WHAT CAN I DO? I HAVE ASKED MY EMPLOYER AND THEY ISSUED ME A LETTER VERIFYING THAT I HAD CAR BENEFIT FOR BUSINESS AND PERSONAL USAGE SINCE 29TH APRIL 12 TILL DATE AND IN ACCORDANCE TO THE P11D FORM, THE CASH EQUIVALENT OF THE CAR BENEFIT IS £3779.00 AND IT IS TAXABLE.

DO i APPEAL OR REQUEST FOR ADMINISTRATIVE REVIEW? IT IS SIMPLY A MATTER OF TIME GAP. I DID HAVE THE CAR AND ONCE HMRC HAD A CHANCE TO UPDATE MY ACCOUNT WITH THE INFORMATION PROVIDED TO HMRC BY MY EMPLOYER, THE NEWLY ISSUED TAX CODE WILL BE IN MY SALARY SLIP AND THIS WILL " BE SPECIFIED IN THE PAYSLIP".

WHAT DO I DO? WHAT WILL HOME OFFICE NEED OR WANT TO OVERTURN THEIR DECISION?

Did your company not send P46 Car when you started receiving car benefit? At that time you should have received a revised code letter from HMRC and your new tax code should have been adjusted to reflect the car benefit hence showing the benefit in payslip.

It appears your company's payroll department not sent your car information to HMRC on time.

You should get a letter from your employer and also get confirmation of car benefit from HMRC.

PS- Please do not write in Capital letter it makes very hard to read and help you.

Good luck.

[ban.s]

HMRC / tax notification is a probably not an issue here.

The key question is whether the car benefit can be considered as an 'earning' from an immigration perspective.

a) what does your employment contract state about your eligibility of the car benefit, and on what basis?

b) was the cash equivalent of the car benefit, as mentioned in the P11D, actually paid to you? if yes, how and when?

[HSK Accountancy Services]

HMRC / tax notification is a probably not an issue here.

The key question is whether the car benefit can be considered as an 'earning' from an immigration perspective.

a) what does your employment contract state about your eligibility of the car benefit, and on what basis?

b) was the cash equivalent of the car benefit, as mentioned in the P11D, actually paid to you? if yes, how and when?

Car benefit is a taxable benefit and should always be considered by HO. So that is not an issue.

It is not same as Car Allowance which is paid in cash. Issue here is OP company did not send his 'P46 Car' and did not pay tax on time.

This is an allowable benefit for immigration purposes.

[ban.s]

Let's no jump into conclusion and wait for the OP to clarify the details of his employment contract with respect to the car benefit.

Moreover not all taxable benefits are 'earning' from an immigration purpose e.g. Medical insurance.

[easyguy]

arif1652,

I totally agree with HSK Accountancy Services, car benefit is a taxable benefit and should be considered by HO.

I got my tier 1 extension last month and all points were awarded for previous earnings which included 8.5k for P11D (car & fuel) benefits. Your issue could be that HMRC didn't have your car info right or you missed a supporting document to confirm this is part of your remuneration package.

Supporting documents I sent for previous earnings -
- Payslips & bank statements
- Employer letter - confirming total earnings = PAYE income + cash equivalent of taxable benefits (Car & Fuel) as part of salary
- P11D form provided by employer
- I also sent, HMRC tax coding notices stating the cash equivalents

Do your payslips for the period have a K tax code? And did you receive any coding notices from HMRC confirming that you have to pay tax on the car benefit, if yes did you send those with your application?

FYI, people who got their extensions/visas with P11D car benefits please see -
1. http://www.immigrationboards.com/viewto ... 876#732876
2. http://www.immigrationboards.com/viewto ... light=p11d
3. http://www.immigrationboards.com/viewto ... 176#856176

[arif1652]

Dear easyguy,

thank you for your time and effort to explain. I did not have K tax code as my employer submitted the P11D form this June 13. And our accountant also said that this P11D is the only form they were obligated to provide to the HMRC.

I called HMRC and they confirmed receipt of the P11d form from my employer and they will be sending me a letter once they have had the chance to populate my records.

As supporting documents, I only provided the copy of the P11d form and salary slips.

http://www.legislation.gov.uk/ukpga/200 ... /chapter/6
search "Benefit of car treated as earnings" -

and
http://www.ukba.homeoffice.gov.uk/polic ... appendixa/

23. Earnings include, but are not limited to[/b

in ref to above, I think HO made a mistake by not considering this as a taxable benefit and therefore an earning. Instead they considered it as "Car Allowance" and made the mistake.

in my appeal, I am thinking of making this argument. Can I add a letter from my employer verifying my salary and car benefit? Would the judge consider this as new evidence and not consider it?
I am hoping to get a letter from HMRC explaining the car benefit and the tax I have to pay for it.

HSK Accountancy Services - Thank you.

[easyguy]

airf1652,

Submitting P11D is your employers job, and this is only done after the end of year usually in May/June before the deadline. However the first month when you got the company car you or your employer should have notified HMRC about the taxable benefit. And they would have issued you a revised K code with a coding notice.

All you have to prove in your case for appeal is that, your earnings includes the benefit i.e. earnings = PAYE salary + cash equivalent of the car. Payslips may not include P11D benefits, but they are still part of your earnings.

Did you not provide a confirmation letter from your employer to confirm the above? If you didn't, this could be reason why the case worker might have made a mistake or thought this is allowance and not given you points. I think you went wrong with 2 things -
1. No confirmation from employer to backup your P11D form and prove that this is part of your 'Remuneration Package'. FYI, P11D form is available on HMRC's website to download and anyone can fill it randomly - http://www.hmrc.gov.uk/forms/2013/p11d.pdf
2. Payslips not having a reference (tax code) to a changed tax calculation or any letter from HMRC

In my personal opinion, you will win the appeal. I think you can add a letter from your employer. As long as the info in it, is the same as the P11d and payslips that you provided before. Also remember, the letter you will get from HMRC was not available to you at the time when the decision was made so you couldn't provide it then. So I'm guessing you could include this too. I don't know the limitations regarding appeals, however your solicitor should be able to suggest all this.

Also do your own research i.e. search this forum for appeal cases and see what UKBA rules/restrictions are regarding appeals.

[naveediiqbal]

HMRC / tax notification is a probably not an issue here.

The key question is whether the car benefit can be considered as an 'earning' from an immigration perspective.

a) what does your employment contract state about your eligibility of the car benefit, and on what basis?

b) was the cash equivalent of the car benefit, as mentioned in the P11D, actually paid to you? if yes, how and when?

Car benefit is a taxable benefit and should always be considered by HO. So that is not an issue.

It is not same as Car Allowance which is paid in cash. Issue here is OP company did not send his 'P46 Car' and did not pay tax on time.

Hi,

I need some guidance from some one on what is an allowance and whats a benefit and if we are allowed counting flexible benefits as part of our previous earnings or not

Need some kind response on this help.

Kind Regards
This is an allowable benefit for immigration purposes.

[naveediiqbal]

Hi,

I need some guidance from some one on what is an allowance and whats a benefit (difference between these) and if we are allowed counting flexible benefits as part of our previous earnings or not

Need some kind response on this help.

Kind Regards
This is an allowable benefit for immigration purposes.