SelfEmployment Profit falls in two financial years

[sherry19]

Hello,
I am planning to go to PEO for ILR (Tier 1 G route) in a few days. In my/my accountant’s opinion, my case is not complex and I don’t have any tax amendments etc. However, reading a few posts about tax issues has made me a little worried (hopefully unnecessarily). My question is that I had an extension in October 2013 for T1 General. The profit from my Self-employment declared to HO was from Oct12 to Sep 13 so it falls in two financial years. I filed all self-assessments and paid all taxes on time. However, to match my profit declared to HO with HMRC, HO would have to add the profit for two financial years. When added together, my profit exactly matches the profit declared to HMRC. I have explained it clearly in a cover letter. Could this be an issue at PEO ? Considering this, is postal application a better option for me or am I being worried unnecessarily? Has anyone had similar issues ?

Please help. Thank you.

[Devil81]

Hi

I had a case where my profits as per self-assessments submitted to HMRC were more than the profits claimed in previous Tier 1 (General) extension and the earnings used for extension fell between two tax periods.

It is fine as long as the profits as per self-assessments submitted to HMRC are not less than the profits claimed in previous Tier 1 (General) extension which shows inflated earnings for claiming points for extension and not paying enough tax.

Be very specific on your cover letter by way of creating tables and comparing both of them and show dividends earned for tax period and dividends for previous extension.

Also say something like "Dividends as per self-assessments submitted to HMRC are equal to the dividends claimed in previous Tier 1 (General) extension".

Hope this helps.

Thanks

[aliq09]

Hi ,

I will say to take a letter from accountant explaining all the years tax . In first place there is no need to confuse CW with extra information . During your ILR application , standard checks has been performed including HMRC , DWP and rest . if somre thing comes out to be " Not normal" under these checks and "others" CW comes to you either for further explanation ( at this point your previously prepared letter will be good to present ) or give you a letter for further checks . I believe you have to put your case organized , simple and honest ...

Good luck mate!