ILR - Apply Now or Wait for LR

[mrazi85]

First of all please accept my apologies for the long post. I am currently on T1G and have valid leave to remain until December 2017. I will become eligible to apply for ILR (LR) in September 2017 though I will complete my 5 years on T1G next month. I am employed by a reputable company based in Birmingham and have been on PAYE for a few years. My history is

Initial Grant of T1G – September 2011 (income from dividends)
Extension – 2013 – (PAYE and a bit of Self-employment – all tax declared and paid on time)
Extension – 2015 – (Full PAYE)
Future Application for ILR (Full PAYE).

I have been earning more than the 35K threshold just from my main employment through PAYE for a few years. Now the problem is that for my initial grant, I was a director of a company and received dividends. My accountant never filed the Self-Assessment as he believed that SA is not required because my dividend income was below high threshold and I was not even registered as self-employed during that financial year. This seems to be the opinion of a lot of accountants as reflected from the link below.

http://www.spammer.co.uk/any-answ ... assessment (Replies 1st and 2nd from the top)

At that time, I had just started working after finishing my degree and didn’t even know what a self-assessment was so I completely relied on my accountant to keep my tax affairs in order. However, I have now heard of a few people who got refused purely on the basis that they didn’t file a self-assessment for the year when they claimed income from dividends. I have now submitted my Self-assessment and have received confirmation that it’s been processed by HMRC.

Please note that my history proves that I paid all the other taxes on time for all other extensions including my first extension which was based on PAYE + self-employment. Also after I submitted my tax returns late for the initial grant, I was only asked by HMRC to pay tax of less than 100 pounds which I paid straightaway. This proves that I clearly didn’t do it for tax evasion because I usually pay over £800 in Tax and NI every month and I also paid all my taxes on time when I applied for my first extension.

My questions now are:

1) As my current application is based on PAYE, is it safer to go to PEO with P60s and SA302 for previous years?
2) I have also heard premium upgrade on postal applications, is it worth it?
3) Should I rather wait for my 10 years to complete and make an ILR (LR) application? I know HO may still refuse it but I have been told that this would engage article 8 of private life and human rights so I guess more chances of success?

Any suggestions will be highly appreciated.

[Abc499]

I am neither an accountant nor a lawyer so my opinion is not be based on law but sharing my thoughts after reading your concern.

while applying it is better to concentrate on how the case worker see the things, rather then trying to prove we are right. only on court probably there is much more option to prove our self that lawfully we are correct but less scope while applying as they will take the decision based on there guideline which is available to them on the point of application.

I think in your case it is better to submit the self-assessment first, even though there is no additional tax due. For the company director I think the case worker looking for self-assessment because from one point they can see your total earnings. which currently may be they can get your 2011 PAYE user you, but for the company the amount may be under company on HMRC record. when you submit self-assessment then you are declaring both amount together so it comes under your figures. I do not know what is the exact rules but form the link I can see https://www.gov.uk/self-assessment-tax- ... tax-return it says you must need to send a tax return "you were a company director - unless it was for a non-profit organisation " on that year. So there may be rules that there will not be additional tax if you are within a threshold and when there is no tax then probably it become practice not to submit a return. And as there is no tax then probably HMRC is not saying anything even if its not submitted. But I understand that no tax does not mean that its my choice to submit or not, probably it should be submitted.

from this forum also we can see that good number of people got refused just not to submit, even though there was no tax due. As you have noticed that before you apply so I think you have a very good option to sort out this before you apply.

If you submit keep the copy of the HMRC confirmation and explain the situation with the application, also explain in a good way which clear that actually there was no additional tax (which also they can see). this will give them clear idea that you had no intention to avoid any tax and tax actually paid on time. I do not think they will refuse you if you explain in advance and sort this in advance (even though its just before application but as no tax avoided, I believe it will be fine). while considering application, I think they keep in mind others years to, from you as others years fully on PAYE this will give good impression and remove there doubt if there is any. it is always better to explain if there is anything you think could be an issue, before they find it.

if you wait for ILR (LR), still the same issue will come, its true you will get appeal right. However, I think if you submit SA now, I genuinely believe there will not be problem for you as there is nothing you tried to avoid tax and others years very much straight forward.

Its your decision at the end which route you will apply when you will apply and how you will apply but probably it will not be good idea not to submit the Self-assessment.

Do not worry at all Good Luck with your application.