Page 1 of 1

Outstanding tax on self employment and ILR

Posted: Sun Apr 28, 2013 3:34 pm
by Aqeel
I'm applying for ILR in June on PEO, I was initially given HSMP and then extension as Tier 1 General at the time of extension I was employed plus a self employed and claimed points on the basis of both sources.

I had to pay HMRC tax on my self employement which was nearly £1900, which I wasnt able to pay because of change of circumstances, and HMRC agreed to a payment plan with me, which I'm paying them regularly on a monthly basis and I still have £1300 outstanding.

My question is since now I'm applying on a full time employment basis ONLY my full time employment is giving me full 20 points which I needed, do you think that outstanding tax can be a problem for me on PEO? can they turn down my application because I've got outstanding tax on my self employment for the year 2010-2011?

Thanks in Advance

Re: Outstanding tax on self employment and ILR

Posted: Tue Apr 30, 2013 2:50 pm
by selva
Aqeel wrote:I'm applying for ILR in June on PEO, I was initially given HSMP and then extension as Tier 1 General at the time of extension I was employed plus a self employed and claimed points on the basis of both sources.

I had to pay HMRC tax on my self employement which was nearly £1900, which I wasnt able to pay because of change of circumstances, and HMRC agreed to a payment plan with me, which I'm paying them regularly on a monthly basis and I still have £1300 outstanding.

My question is since now I'm applying on a full time employment basis ONLY my full time employment is giving me full 20 points which I needed, do you think that outstanding tax can be a problem for me on PEO? can they turn down my application because I've got outstanding tax on my self employment for the year 2010-2011?

Thanks in Advance

It would be good if you can clear the HMRC amount. I believe that it is fine as long as you have agreed and paying on a payment plan.
if you are not going to settle the amount before your PEO then I would suggest you to take the evidence for payment plan and your regular payments records (bank statements or a summary from HMRC)

Re: Outstanding tax on self employment and ILR

Posted: Wed May 01, 2013 11:58 am
by onabanjo
selva wrote:
Aqeel wrote:I'm applying for ILR in June on PEO, I was initially given HSMP and then extension as Tier 1 General at the time of extension I was employed plus a self employed and claimed points on the basis of both sources.

I had to pay HMRC tax on my self employement which was nearly £1900, which I wasnt able to pay because of change of circumstances, and HMRC agreed to a payment plan with me, which I'm paying them regularly on a monthly basis and I still have £1300 outstanding.

My question is since now I'm applying on a full time employment basis ONLY my full time employment is giving me full 20 points which I needed, do you think that outstanding tax can be a problem for me on PEO? can they turn down my application because I've got outstanding tax on my self employment for the year 2010-2011?

Thanks in Advance

It would be good if you can clear the HMRC amount. I believe that it is fine as long as you have agreed and paying on a payment plan.
if you are not going to settle the amount before your PEO then I would suggest you to take the evidence for payment plan and your regular payments records (bank statements or a summary from HMRC)

That is a perfect response to your case. However, I will suggest and strongly too that if you can afford to pay off before your ILR date because outstanding tax from extension period is gradually becoming a big issue for those applying for ILR now.

outstanding tax

Posted: Thu May 02, 2013 7:53 pm
by Aqeel
Thanks for the response, But the problem is I'm not in a position to pay that off at once? how big of a problem this can be? have you ever come accross anyone in a same boat and being refused on the similar basis.

Thanks,
Aqeel

Re: outstanding tax

Posted: Fri May 03, 2013 9:29 am
by onabanjo
Aqeel wrote:Thanks for the response, But the problem is I'm not in a position to pay that off at once? how big of a problem this can be? have you ever come accross anyone in a same boat and being refused on the similar basis.

Thanks,
Aqeel

Needless to sound negative about your application but the fact remains that am not speculating.

However, if you are not in the position to pay off the outstanding, the only feasible option available is you sumbit your application with all the evidences from HMRC agreeing to the instalmental payments.You MAY be lucky to scale through primarily because no self-employment now with your ILR application.