ESC
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Mainly happened with the 2 fellows I know from some reference, they have been asked about their tax on the business they have showed with application and for the other one they asked to call one of the clients to confirm the invoice(as he was travelling with the whole tier 1 application)mulderpf wrote:Any source of this information? I fly fairly frequently and I've never had any issues. (Been through LHR, LGW and LCY recently without issues).
thanks samira.samira_uk wrote:Immigration Officers ask any sort of questions and it is not only for Tier 1 G. It is a matter of chance. There has been many times that I was questioned about irrelevant matters and there has been times that I passed the gate without any question.
Yeh Max, that's what i am talking about , even yesterday someone told me his very good mate had his visa cancelled cuz there was something to do with his tax.max2k12 wrote:yes, ABZ,
I have come to know as well, IO at heathrow drilling almost every self employment case wrt tax and company current status.
Dear Samira,samira_uk wrote:I dont accept this scenario. Immigration Officers cannot revoke visa due to your tax. Dont accept everything. Tier 1 visa only and only can be revoked due to General Ground for refusal such as false document, false information, etc. Tax problems are not regarded as General Ground. It is something between you and HMRC.
samira_uk wrote:Hi
No it is not true. When you are applying for any kind of visa you have to tell truth at the time of application not afterward. If your documents are genuine and you can prove that at the time of application your self employment income is £20K it is fine. What is happening after that it is irrelevant of that application. There are some different scenarios:
1-You actually did not earn £20K of self employment and you made accounts to show that. In that case you are deceiving the UKBA and if they understand it later they can revoke the visa.
2-If your documents are genuine and due to market conditions or anything else your business cannot make profit later it is not your problem. Assume that you claim points for employment and after visa extension you are fired. Then, UKBA cannot revoke your visa. What you claimed at the time of visa application matters.
Dont trust anyone. Maybe there were other points in their application which you are not aware of them.
max2k12 wrote:Dear Samira,samira_uk wrote:I dont accept this scenario. Immigration Officers cannot revoke visa due to your tax. Dont accept everything. Tier 1 visa only and only can be revoked due to General Ground for refusal such as false document, false information, etc. Tax problems are not regarded as General Ground. It is something between you and HMRC.
FYI, UKBA can cancel any tier 1 visa on Tax ground. its happening now a days alot. could you please look the below logic and tell me if I am wrong.
let suppose:
you apply for Tier 1 visa showing 40K ( 20K employment + 20 K Self Employment)
you submitted the profit and loss statement and declare the accounts.
on basis of your accounts UKBA will issue you the visa that you have eaned 40K. after 6 months you said your company is collapsed (sound dodgy) and you wont be able to pay the tax.
you suppose to pay the tax on 40K and when you submit the tax return to HMREV you mention only 2K of profit (which everyone does) so it means you only earn 22K for that year.
in this above case you use deception and YOUR VISA WILL BE CANCELLED>
I hope you understand this, and if you have any logical argument please share with us.
You always have to "tell the truth", whether in an application or at the border.samira_uk wrote:When you are applying for any kind of visa you have to tell truth at the time of application not afterward.
what you said above it clearly means, every one can get Tier 1 gen very easily,samira_uk wrote:I did not mean that you can tell lie after application. What I meant is that when you apply you are claiming based on the fact at that time. Net profit is something calculated based on accrual rules in Accounting and some part of it is projection and not actual. Therefore, it is very common that today you claim your net profit as £30K but at the time of tax filing it will be £30K loss.
Therefore, you actually did not do anything wrong and did not tell any lie.
The problem is when that you show UKBA £30K profit but at the same time tell HMRC that your profit was only £3K. It is wrong.
haha calm down bro, she saying the same thing, its not you showed profit of 30k and when submitting to HMRC you show profit of 3k instead of 30k , but what i could understand, after submitting that 30k profit you can further mention losses in it (if there are any)max2k12 wrote:what you said above it clearly means, every one can get Tier 1 gen very easily,samira_uk wrote:I did not mean that you can tell lie after application. What I meant is that when you apply you are claiming based on the fact at that time. Net profit is something calculated based on accrual rules in Accounting and some part of it is projection and not actual. Therefore, it is very common that today you claim your net profit as £30K but at the time of tax filing it will be £30K loss.
Therefore, you actually did not do anything wrong and did not tell any lie.
The problem is when that you show UKBA £30K profit but at the same time tell HMRC that your profit was only £3K. It is wrong.
1. get register to hmrev as self employed
2. open business do transactions
3. reach to threshold submit the profit and loss statmnt
4. when it comes to HMREV declare the profit of what ever you like
5. JOB DOne !!!
ILR granted after 5 years...
I dont think so at all.. that UKBA and HMREV is that stupid to make a fool of..
as I told you before. I have spoken to lawyers and consultants and they ALL agree to same point.
any way you stick with your way and I will stick with the LOGIC.
Where did you find this. It is against all Accounting principles.Mayurc wrote:HMRC says about Self-Employed Accounting:
You or your accountant can, if you wish, use these records to create a profit and loss account. It shows the sales income you've received and the expenses you've paid, and what profit/loss you've actually made. The more detailed records you keep, the easier it will be to answer any questions that HMRC have about your tax return.
UKBA is also following above standards. So HMRC have told you firmly that SALES INCOME RECEIVED AND EXPENSES YOU HAVE PAID. They haven't told you to accrue your sales invoices which you haven't received the money. So any future receipts/payment which hasn't received or paid. How you can declare the loss?
Aware!
samira_uk wrote:Where did you find this. It is against all Accounting principles.Mayurc wrote:HMRC says about Self-Employed Accounting:
You or your accountant can, if you wish, use these records to create a profit and loss account. It shows the sales income you've received and the expenses you've paid, and what profit/loss you've actually made. The more detailed records you keep, the easier it will be to answer any questions that HMRC have about your tax return.
UKBA is also following above standards. So HMRC have told you firmly that SALES INCOME RECEIVED AND EXPENSES YOU HAVE PAID. They haven't told you to accrue your sales invoices which you haven't received the money. So any future receipts/payment which hasn't received or paid. How you can declare the loss?
Aware!
Refer to this link:
http://www.hmrc.gov.uk/manuals/tcmanual/tcm0118180.htm
and this sentence:
Accounts should be drawn up on an accrual basis not on a cash basis. It isn’t simply a matter of cash received less cash spent.
Exactly since it is after the fact..so accrual accounting may not be fully applicable hereMayurc wrote:HMRC says about Self-Employed Accounting:
You or your accountant can, if you wish, use these records to create a profit and loss account. It shows the sales income you've received and the expenses you've paid, and what profit/loss you've actually made. The more detailed records you keep, the easier it will be to answer any questions that HMRC have about your tax return.
UKBA is also following above standards. So HMRC have told you firmly that SALES INCOME RECEIVED AND EXPENSES YOU HAVE PAID. They haven't told you to accrue your sales invoices which you haven't received the money. So any future receipts/payment which hasn't received or paid. How you can declare the loss?
Aware!
And that's the difference between taxable profit and accounting profit. You work out accounting profit first and then you do adjustments to work out your taxable profit. There is a difference between the two figures.The starting point for taxable profit is the profit shown in accounts drawn up in accordance with UK Generally Accepted Accounting practice. That figure may then need to be adjusted to take into account specific tax reliefs and adjustments provided for by statute and case law.
Ok. then what about my link? HMRC is telling two different things?Mayurc wrote:samira_uk wrote:Where did you find this. It is against all Accounting principles.Mayurc wrote:HMRC says about Self-Employed Accounting:
You or your accountant can, if you wish, use these records to create a profit and loss account. It shows the sales income you've received and the expenses you've paid, and what profit/loss you've actually made. The more detailed records you keep, the easier it will be to answer any questions that HMRC have about your tax return.
UKBA is also following above standards. So HMRC have told you firmly that SALES INCOME RECEIVED AND EXPENSES YOU HAVE PAID. They haven't told you to accrue your sales invoices which you haven't received the money. So any future receipts/payment which hasn't received or paid. How you can declare the loss?
Aware!
Refer to this link:
http://www.hmrc.gov.uk/manuals/tcmanual/tcm0118180.htm
and this sentence:
Accounts should be drawn up on an accrual basis not on a cash basis. It isn’t simply a matter of cash received less cash spent.
http://www.hmrc.gov.uk/sa/rec-keep-self-emp.htm#1
Check this one...
Please check my link from HMRC as well. It is impossible to use cash profit in any tax system and it is something acceptable all around the world. Tax adjustment does not mean that you should only declare cash receive and cash payments. In my link it is clearly stated the profit/loss should be calculated on accrual basis.zabiela wrote:Exactly since it is after the fact..so accrual accounting may not be fully applicable hereMayurc wrote:HMRC says about Self-Employed Accounting:
You or your accountant can, if you wish, use these records to create a profit and loss account. It shows the sales income you've received and the expenses you've paid, and what profit/loss you've actually made. The more detailed records you keep, the easier it will be to answer any questions that HMRC have about your tax return.
UKBA is also following above standards. So HMRC have told you firmly that SALES INCOME RECEIVED AND EXPENSES YOU HAVE PAID. They haven't told you to accrue your sales invoices which you haven't received the money. So any future receipts/payment which hasn't received or paid. How you can declare the loss?
Aware!
Also since the visa is given on the very basis of the earnings/profit so if you don’t satisfy that condition or your conditions have changed they may well revoke the visa even if they can’t cancel it retrospectively...my 2 cents