HMRC Penalties for late filing SA and any impact on ILR ?

[gadag]

Hello Friends,

I am applying for ILR by next month on 5 year root(Tier 2).

My HMRC records are clean and up to date with no penalties.I have filled all the Self assessments and paid tax(employer has done).

For year 2013-14,HMRC had put penalties for late filling with 6 month penalty.later when I appealed with valid reason,My appeal had accepted under sect 54 Taxes Management Act 1970.got letter for the same stating my appeal has been accepted and penalties have been cancelled.

My query is - Should I need to mention this details to Home office regarding this during my ILR application?

Does it has any impact on my ILR ? since case worker might come to know about this during my HMRC checks.

Please advice.

Thanks in advance.

[gadag]

Hello Friends,

Kindly advice.

[gadag]

Hello Friends,

Kindly advice.

Gurus,
Kindly suggest.

[gadag]

Hi friends,

Kindly advice.

[monty87]

For year 2013-14,HMRC had put penalties for late filling with 6 month penalty.later when I appealed with valid reason,My appeal had accepted under sect 54 Taxes Management Act 1970.got letter for the same stating my appeal has been accepted and penalties have been cancelled.

My query is - Should I need to mention this details to Home office regarding this during my ILR application?

Does it has any impact on my ILR ? since case worker might come to know about this during my HMRC checks.

Please advice.

Thanks in advance.

No, you do not need to mention it. I was also penalized for year 2011/12 for 7 months late filing at the time, I appealed and penalties had been cancelled by HMRC. As long as you have correctly filed it after 6 months past the tax year 2013/14 filling date you will be fine. Home Office checks records for retrospective amendments and discrepancies between figures declared to HO and HMRC. I would also suggest to make sure your online account shows up accurate SA302s as claimed on paper SA302s.

[gadag]

Thanks mate.

I am Tier 2 applicant and my employer had paid the tax correctly(asper the p60).

I have received the employment history letter where my p60 details matches.

Should i check any thing else ? i am not sure about SA302 as you mentioned.

Pls suggest.

[gadag]

And also,

Another query regarding SA( Tier 2 ICT)

For year 2011-12,SA was not filed since it was not knowing to submit or not.when requested HMRC,they confirmed that not required since they did not issue it.but I kept insisting to issue/enable in so that i can fill it online.they enabled it for missing years i e 2012-13 and 2011-12 with out any penalty.

But for 2011-12 it was not enabled online.when i informed them,they confirmed it can not be done online since its 4 year old record and advised to send the paper return and I sent it in May 2016 before end date(as per date shown).

HMRC received paper return and date shows in hmrc site.But when asked whether it got processed or not,they are saying it wont get processed due to old record.

How do i proceed ? will it impact my ILR application ?.I have done every thing from my end .its with HMRC to process and update it.

[monty87]

@ gadag

I don't quite understand why you need to file Self assessment anyway unless you are a sole trader or company director. You are on tier 2 so consistency between HMRC employment tax history and your P60s given to you for last 5 years should suffice in your case.

[Abc499]

@ gadag

I don't quite understand why you need to file Self assessment anyway unless you are a sole trader or company director.

gadag might know what exactly on his case but HMRC send the form and ask to submit for on some other situations too, like the high earners/ if tax code wrong/tax underpaid, multiple job and tax was not correctly deducted then HMRC send SA form to individuals too even if they are fully employed only and no other income.

@gadag
you should clearly know why you had to submit SA and simply you can check with HMRC that is there any SA submission due against you. if no submission due then all fine.

[gadag]

Hi ,

Thanks for your responses.Yes, employment history and p60 are sufficient.

in 2014, my ICT top 3 employer sent email to file SA for all employees.when i started to realize that i missed it,when called for UTR and other information, HMRC has sent it.but it was late with 6 month penalty.

I have filled it with 6 month penalty for 2013-14(with penalty) and 2014-15 (no penalty).

I had raised appeal against penalty and it got accepted and refunded.

Also when i checked for 2011-12 and 2012-13 were not visible in my HMRC drop down list though only 2010-11 available with received state

like below
2015-16( submitted with processed date)
2014-15 ( submitted with processed date)
2013-14(submitted with processed date)
2010-11 ( received on XXX)

So I asked for missing year to keep my HMRC clear,but HMRC informed me that it wont appear since they have not issued it for those years(2011-12 and 2012-13) but I insisted them to enable it online asap so that i can submit since i had p60's with me.they enabled for 2012-13 but not 2011-12 as it was old record it seems.

I filed online for 2012-13. and 2011-12 sent paper form as suggest by HMRC (upon chasers to them).

HMRC over page shows they received paper form submission in may 2016 but when asked,it was not processed yet(seems it wont as it is 4 year older record).

My HMRC records update date with no penalty now.

My concern is
1) does 2011-12 unprocessed SA has impact on my ILR ? if yes,what i need to do.
2) does late filing penalty and waived off - has any impact on my ILR ?

Worrying on above ones.

your valuable suggestions will gives me peace of mind before i go for ILR which is planned in end of sept 2016(via ICT 2).

[CR001]

It sounds like you are 'contracting'. If you are PAYE employee, you don't need SA unless you earn a massive salary (as far as I am aware).

[gadag]

Thanks CR001,

I am a Tier 2 Software developer and my gross earning is less than 40K.if you include allowances(shift) also it wont cross 45K annually.

I am not working as contracting.I am a permanent employer of Tier 2 company where i get salary and mine is PAYE.

my P60's shows Employer PAYE Reference.

I am bit confused and worried on this part.I understand that PAYE no need to do SA but since i have done,Does my Self assessments which all done till now has any impact including 2011-12(received but not processed) on my ILR ?.

[cs95tdg]

Yes, employment history and p60 are sufficient.

in 2014, my ICT top 3 employer sent email to file SA for all employees.

Do you know why your employer asked its employees to file self assessments? This isn't something I'd expect an employer to request.

If you were a sponsored ICT employee I'd expect taxes to be deducted at source (employer) through PAYE. Did this not happen? My understanding too is that when an individual's income is exceptionally high then HMRC would be in touch with the employee to request that they file a SA (if they weren't already aware of this). other instances where someone would file a SA would be if they have additional income outside of their ICT employment, so that the necessary taxes can be paid on that.

Your circumstances don't appear to be following the norm. But may be you can elaborate to clarify why SA''s were required in the first place.

[Abc499]

I am bit confused and worried on this part.I understand that PAYE no need to do SA but since i have done,Does my Self assessments which all done till now has any impact including 2011-12(received but not processed) on my ILR ?.

For PAYE employee you might need SA when
#your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
#your income was over £100,000
#you had a P800 from HMRC saying you didn’t pay enough tax last year - and you didn’t pay what you owe through your tax code or with a voluntary payment

seems none of this apply to you. never heard Employer ask to submit SA. However, mentioned 2011-12 what additional you have submit on top of PAYE income !!! if just PAYE income and no additional income and just the submission with PAYE incomes then should not be any issue. But still I am also thinking why the SA was required for you

[gadag]

Hi friend,

I just sent paper SA with information available in P60 shared by my employer.i mean P60 information.

Note : for few years, i have got refunded extra paid tax which my employer had deducted from my salary.

All SA have been done by taking the p60 as a reference.hence got tax refunded if paid extra ( as over paid tax).

[gadag]

Also I would like to mention a point over here.

My shift allowance were more in 2013-14,2014-15 and 2015-16(max 8k + ICT salary(33k)).

my soc code was 2136.

where as in 2010-11,2011-12,2012-13 there was no shift allowances.

Is it because of more shift allowances,employer started asking me to do SA ?.

[cs95tdg]

Note : for few years, i have got refunded extra paid tax which my employer had deducted from my salary.

All SA have been done by taking the p60 as a reference.hence got tax refunded if paid extra ( as over paid tax).

That's normal HMRC practice, if an overpayment has been made they will send a refund cheque. Likewise if there was a underpayment you have different options to pay this: adjust tax code, make direct payment to HMRC once they send you a P800 or alternatively file a SA. An SA is also useful to those who have many non taxable expenses to claim back. But this doesn't seem to apply to you.

Is it because of more shift allowances,employer started asking me to do SA ?.

Not necessarily, as that could have easily been handled by the employer informing HMRC of additional income, thereby an adjustment could have been made to your tax code. I have had multiple adjustments to my tax code over a year, by changes the employer has informed HMRC about.

From what you have stated it appears that you probably didn't need to submit an SA. But as its done you'll probably need to make sure all records are up to date, to avoid any confusion to a caseworker looking at your application & employment history.

[gadag]

Thanks Friend,

My records are update date since my employer had paid the tax correctly and my employment history letter shows the tax deductions and total pay out for all 6 years which matches with P60'/p45.

only confusion is regarding my SA for year 2011-12 which I have already submitted but it was late with out any penalty(issued on my request) but not yet processed state.only in received state.

Do i need to chase HMRC for this to get it processed ? I have done and they told it wont since it came out of window.

[gadag]

Hi All,

i have spoken to HMRC for 2011-12 SA and they confirmed that they are happy with my paper return which they have received it late with out any penalty(will not be processed due to out of window). Also they confirmed that they sent a letter stating they are happy for 2011-12 SA and I have paid tax up to date and nothing is pending.also they have put the note on the screen with same.

Hope this letter of confirmation is sufficient if any question arises.

[gadag]

Received letter from HMRC stating SA for 2011-12 has been received.

As below.

Thanks you for SA for year 2011-12.the time limit for making SA or claiming a repayment for 2011 to 2012 ran out on 5th April 2016.
Because of this they don't intend to take any further action with information in the tax return.

Note:No Penalties being charged for me.

In May 2016,after request they enabled it in system as previously it was not issued to me. and window was until 21st July 2016.I have sent it on 19th May.

Any suggestion from seniors on this situation.Will it have any impact on my ILR ?. HMRC says they are happy with my account and no dues. but still i feel some what worried.

[gadag]

Hi Seniors,

kindly suggest me what else i need to do for my situation.I have seen in forum where many Tier 1 general cases got rejected.mine is tier 2 ICT.

[gadag]

Hi All,

Every ones information.I had called HMRC and explained the situation.they told nothing to worry.

Also they agreed to send me the tax calculation letter stating i have sent SA and tax calculation for SA-2011-12 and nothing is pending.No penalties.