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ILR - Self Employed - Limited Company - Company Accounts

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OMGHO
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Posts: 3
Joined: Sat Jul 22, 2017 11:27 am

ILR - Self Employed - Limited Company - Company Accounts

Post by OMGHO » Sat Jul 22, 2017 1:11 pm

I am applying for my ILR - Tier 1 General - 5 years. I am a self employed sole trader limited company director.
Query is:
1. When reviewing my documents, I noted a discrepancy in the figure of dividends I showed to HO during Tier 1 extension in 2015 and the one filed by my accountant to HMRC. I asked the accountant to get it corrected. Promptly enough he corrected the figures and submitted the application to HMRC. But Since it is July 2017 now, that I detected the mistake (my bad cannot curse me enough), he could not do it online & had to post it to HMRC. He said it could take a couple of weeks before this could get reflected in my HMRC records. He gave me the corrected tax returns documents. Now the dividend in the tax return document and the one I filed during my extension match.
Qs: Does a case worker goes and check each tax return with HMRC's system real-time ? Also if the appointment is one day premium & on a Saturday ? Should I wait to get my records updated in HMRC ?

2. Accountant also has to correct the figures in the company accounts. But problem is company was closed in 2016. So updating the company accounts will take months as accountant has to re-instate the company and then get the accounts updated. He said that as the dividends were declared as directors loans when we closed the company, this will not affect the corporation tax and it should be still be the same.
Qs: Should I wait for months to get the company re-instated and get the accounts updated ? or
Should I submit the accounts with discrepancy and hope they do not notice it or ignore it.
And if HO notices & asks for explanation get accountant letter explaining the situation.
or Should I not submit the company accounts and submit them only when asked ?
Or Should I submit the accounts with discrepancy and get a letter from accountant explaining the situation

The documents that I have for self employment are :
12 months business bank statements
12 months personal bank statements
12 months salary slips
12 months dividend vouchers
12 months invoices
last 5 years personal tax assessments
last 5 years corporation tax returns
all company accounts - but the 2014-15 company accounts have incorrect dividend figures

Any expert suggestion will be highly appreciated. Apologies if this particular query has already been answered. If so pointer/link to the answer will be very helpful and of course appreciated.

Wanderer
Diamond Member
Posts: 10511
Joined: Thu Apr 21, 2005 1:46 pm
Ireland

Re: ILR - Self Employed - Limited Company - Company Accounts

Post by Wanderer » Sat Jul 22, 2017 3:20 pm

Was the dividend figure for the first year higher than it should have been and reduced later?
An chéad stad eile Stáisiún Uí Chonghaile....

OMGHO
Newly Registered
Posts: 3
Joined: Sat Jul 22, 2017 11:27 am

Re: ILR - Self Employed - Limited Company - Company Accounts

Post by OMGHO » Sat Jul 22, 2017 5:11 pm

Wanderer wrote:Was the dividend figure for the first year higher than it should have been and reduced later?
Hi Wanderer,
Thanks for your response.
Yes. The dividend figure on the self assessment was less than the dividend showed to HO. So it was asked to be corrected. There is an outstanding tax to be paid due to this adjusted figure.

Wanderer
Diamond Member
Posts: 10511
Joined: Thu Apr 21, 2005 1:46 pm
Ireland

Re: ILR - Self Employed - Limited Company - Company Accounts

Post by Wanderer » Sat Jul 22, 2017 5:36 pm

OMGHO wrote:
Wanderer wrote:Was the dividend figure for the first year higher than it should have been and reduced later?
Hi Wanderer,
Thanks for your response.
Yes. The dividend figure on the self assessment was less than the dividend showed to HO. So it was asked to be corrected. There is an outstanding tax to be paid due to this adjusted figure.
Not wishing to cast aspersions but the UKVI is well are that many T1G folks artificially inflated their earnings to gain the extension, then adjusted back down later so as not to pay the tax on it.

Whether it was deliberate or not, if you search the forum here lots in the same boat and none it seems been able to refute accusations of deception.
An chéad stad eile Stáisiún Uí Chonghaile....

OMGHO
Newly Registered
Posts: 3
Joined: Sat Jul 22, 2017 11:27 am

Re: ILR - Self Employed - Limited Company - Company Accounts

Post by OMGHO » Sat Jul 22, 2017 6:36 pm

Wanderer wrote:
OMGHO wrote:
Wanderer wrote:Was the dividend figure for the first year higher than it should have been and reduced later?
Hi Wanderer,
Thanks for your response.
Yes. The dividend figure on the self assessment was less than the dividend showed to HO. So it was asked to be corrected. There is an outstanding tax to be paid due to this adjusted figure.
Not wishing to cast aspersions but the UKVI is well are that many T1G folks artificially inflated their earnings to gain the extension, then adjusted back down later so as not to pay the tax on it.

Whether it was deliberate or not, if you search the forum here lots in the same boat and none it seems been able to refute accusations of deception.
Thanks again Wanderer. I agree with you & have read lots of post here and cannot blame myself enough for the mess (although it was accountant's mistake but I know utltimatley I am responsible). Hence I have taken the steps to correct it.
My question is does UKBA check HMRC returns real-time ? Or do they first look at the documents and if suspicious raise query with HMRC ? My personal tax documents look fine now but will take sometime to be updated with HMRC.

Also will take more time for company accounts to get updated. I know nobody can say for definite how UKBA CW would look at this. But my humble request is there anything else I need to do or I can do to tidy up the mess.
Many thanks.

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