HMRC late filling and affect on Naturalisation
Posted: Wed Aug 19, 2026 10:58 pm
Hi everyone,
I’m looking for some advice/reassurance about a British citizenship application and a recent HMRC issue.
I’m employed and most of my income has always been taxed through PAYE. However, during the 2023/24 and 2024/25 tax years I also had a US brokerage account where I traded US stock options and had some investment income.
At the time, I misunderstood the UK tax rules and thought tax/reporting would only become relevant when I transferred the money back to the UK. I later realised that this was incorrect.
As soon as I found out, I hired a tax accountant to review everything. HMRC then asked me to submit Self Assessment returns for 2023/24 and 2024/25.
My accountant has now submitted both returns within the deadline HMRC gave me. Their calculation was:
* 2023/24: £1,357.60 underpayment
* 2024/25: £1,328.20 overpayment/refund
* Net amount payable across both years: £29.40
I paid the £29.40 before the returns were submitted.
My British citizenship application has already been submitted and my biometrics appointment is this Saturday.
I’m considering uploading a short cover letter explaining the situation, including that this was a misunderstanding of the foreign investment/remittance rules, that I sought professional advice as soon as I realised, and that the returns have now been filed and the tax paid.
Has anyone had a similar situation involving:
* late Self Assessment returns
* previously undeclared foreign investment income/capital gains
* HMRC penalties or interest
* a naturalisation application while the HMRC matter was being regularised
Did it affect your citizenship application or good-character assessment?
I’m particularly interested in experiences from people who corrected the issue voluntarily/professionally and then went on to receive British citizenship.
Thanks.
I’m looking for some advice/reassurance about a British citizenship application and a recent HMRC issue.
I’m employed and most of my income has always been taxed through PAYE. However, during the 2023/24 and 2024/25 tax years I also had a US brokerage account where I traded US stock options and had some investment income.
At the time, I misunderstood the UK tax rules and thought tax/reporting would only become relevant when I transferred the money back to the UK. I later realised that this was incorrect.
As soon as I found out, I hired a tax accountant to review everything. HMRC then asked me to submit Self Assessment returns for 2023/24 and 2024/25.
My accountant has now submitted both returns within the deadline HMRC gave me. Their calculation was:
* 2023/24: £1,357.60 underpayment
* 2024/25: £1,328.20 overpayment/refund
* Net amount payable across both years: £29.40
I paid the £29.40 before the returns were submitted.
My British citizenship application has already been submitted and my biometrics appointment is this Saturday.
I’m considering uploading a short cover letter explaining the situation, including that this was a misunderstanding of the foreign investment/remittance rules, that I sought professional advice as soon as I realised, and that the returns have now been filed and the tax paid.
Has anyone had a similar situation involving:
* late Self Assessment returns
* previously undeclared foreign investment income/capital gains
* HMRC penalties or interest
* a naturalisation application while the HMRC matter was being regularised
Did it affect your citizenship application or good-character assessment?
I’m particularly interested in experiences from people who corrected the issue voluntarily/professionally and then went on to receive British citizenship.
Thanks.