CT600 for T1G to ILR - Urgent please help!!!

[harimyfriend]

I have been in the UK for the last 5 years on Tier 1 General. When I applied for my Tier 1G (2011) and its extension (2013), I had used my limited company income (dividends). When I applied for my ILR today (11 May 2016), the case worker asked me to provide CT600s for both years (2010-2011 and 2012-2013) to show I had communicated with HMRC the right amount I showed in my T1G applications. I have got the CT600 for 2020-2011.

Here is the problem.

Unfortunate due to some miscommunication with my accountant he did not show all my dividends in my CT600 for year 2012-2013. Thereby not declaring to HMRC all the income I generated from my limited company in 2012-2013 although the dividends I submitted to home office include this. I know it looks like I tried to avoid paying tax. This is not the case and this was a genuine mistake. The company is dissolved now so there is no way to rectify this by resubmitting accounts.

Could any of you please suggest a way to resolve this issue? I have almost given up hope but I want to give it one last try. Thank you ever so much.

[harimyfriend]

I also wanted to mention that I spoke to a friend of mine who is a solicitor who adviced me to withdraw the application inorder to buy some time. My current visa is expiring on May 17.

[ahmed009]

hi Harimyfriend,
your best options are
1. Amend your personal tax and include the dividend amount.
2. reinstate your company and amend your corporation tax returns
thanks

[asifaltaf_mba]

Will you mind telling me about your sa302 for required years.did you declare all of your dividends that is during initial and extension time for sa302??
Please eleborate your case bit more.thanks

[sunymalik]

Well what i understand by your post is you have appkied your ILR knowing the fact that your tax matters are not right.....you thought just give it a go if i get will be lucky but my friend every day is not sunday......its.not a joke people paying huge amount of taxes now a days just for the future sake....you gamble it and you lost it.....now you can save money by buying a one way ticket to your country rather than return.....sorry for harsh coments but u alwayz believe on facts.....best of luck for your future life...

[harimyfriend]

Will you mind telling me about your sa302 for required years.did you declare all of your dividends that is during initial and extension time for sa302??
Please eleborate your case bit more.thanks

Thanks for your reply. I have not requested for an SA302. So HMRC is not aware of the dividends I guess.

[harimyfriend]

hi Harimyfriend,
your best options are
1. Amend your personal tax and include the dividend amount.
2. reinstate your company and amend your corporation tax returns
thanks

Option 1 - Can I do that for 2012-2013 period?

Option 2 - Would I be able to file returns so far back after reinstating the company?

[harimyfriend]

Well what i understand by your post is you have appkied your ILR knowing the fact that your tax matters are not right.....you thought just give it a go if i get will be lucky but my friend every day is not sunday......its.not a joke people paying huge amount of taxes now a days just for the future sake....you gamble it and you lost it.....now you can save money by buying a one way ticket to your country rather than return.....sorry for harsh coments but u alwayz believe on facts.....best of luck for your future life...

Thanks for your reply. I was genuinely not aware that my tax matters weren't right. If I knew I would have put it right before I applied for my ILR. I have no issues with paying HMRC the tax I owe. Sadly I just need a way to do it.

[asifaltaf_mba]

Thx for your prompt reply so you are saying you dont even declare dividends in self assesment sa302???
So means dividends not declared in ct600 and in sa302 right??!

[ahmed009]

you can still do the SA, you may have to pay some penalties but they will open your file and then you need to do the SA for that period, you can do on-line, so speak to the hmrc and sort it out. they will help you or seek professional accountant advice and help.

thanks

[harimyfriend]

Thx for your prompt reply so you are saying you dont even declare dividends in self assesment sa302???
So means dividends not declared in ct600 and in sa302 right??!

No the dividends weren't included in the ct600 and my accountant didn't file a return for the year 2013. He advised me to close down the company that year (2014) as I had secured a permanent job and gave up consulting.

I have never done a SA302. Am I able to do it now for the period of 2012/2013? Thanks again.

[harimyfriend]

you can still do the SA, you may have to pay some penalties but they will open your file and then you need to do the SA for that period, you can do on-line, so speak to the hmrc and sort it out. they will help you or seek professional accountant advice and help.

thanks

Hi Ahmed, thank you very much for your advice. Does this mean I can file a SA to show that I had earned dividends during 2012-2013 period now and pay tax on it retrospectively? Does this mean I don't have to reopen my company?

Thanks so much!

[sunymalik]

Its look strange to me a person is goin for ILR and he doesn't kno his case....atleast you shud hve discuss your case with anysolicitor before you apply.....and now a days everyone knows HO is catching tax avoiders.....and you knew this forum before you have applied your visa you....you wud hve seek advise before that....you are responsible of ur refusal...now good luck

[asifaltaf_mba]

Yes you can file sa302 for respective years but problem is hmrc takes 3 to 4 months or even more to update it.
Another prob is CW ask about ct600 so if you want to amend company accounts you need to restore your company and it will be restored through court order and whole procedure is of more than 6 months coz one of my friend is in same boat.
I think firstly you need to withdraw your application and consult professional accountant..they might have some loophole..which are seems to be impossible.
May I ask your company name which you dissolved if you mind.thanks

[harimyfriend]

Yes you can file sa302 for respective years but problem is hmrc takes 3 to 4 months or even more to update it.
Another prob is CW ask about ct600 so if you want to amend company accounts you need to restore your company and it will be restored through court order and whole procedure is of more than 6 months coz one of my friend is in same boat.
I think firstly you need to withdraw your application and consult professional accountant..they might have some loophole..which are seems to be impossible.
May I ask your company name which you dissolved if you mind.thanks

Thanks again for your prompt response. I have already withdrawn my application. The CW only asked for proof to show that I had informed HMRC about my actual earnings. She said 'for example a CT600'. Can I file a SA302 for the period instead of restoring my company and filing accounts? Do they work as 'one or the other' as proof to show that I have paid tax?

Also I just checked online and it seems like a quick online process? Or do you mean, HMRC will take up to 3 months to accept my return as it was for an older period?

In your opinion,can I apply for my ILR (via post) with a letter showing that I have filed the SA302. Perhaps also a cover stating what happened how it was a genuine mistake and I am taking every step to rectify it?

[honey2008]

I think you messed it up because you need to under basic accounting instead of concentrating on DOCUMENTS required for VISA.

CT600 is company tax record to HMRC.

You cannot withdraw dividend from a company if there is not enough net profit in it, if so then the dividend taken by you is illegal.

Company Earnings= 100
Expenses=10
Profit=90
Corporation Tax (say 20%) of profit=18
NET Profit=90-18=72

So only 72 can be distributed among shareholder as dividends.

In my opinion you have taken dividends to score points whereas not shown enough net profit to reduce tax liability which was a huge gamble for which you can't blame anyone. But this does not happen by MISTAKE and hence you have to bear all the consequences .....

The only way forward is to see top accountant if anything can be done post closure of company which in my opinion is very tough or unlikely but you don't have any option left.


Regards
Honey

[ahmed009]

you need to file both SA and CT if you file only one it will call fraud, because you can only take dividend when you have enough profit in the company so you pay corporation tax on the profit and take the dividend simple as that, hope you understand the logic, basically you need to declare both SA AND CT to hmrc

[harimyfriend]

you need to file both SA and CT if you file only one it will call fraud, because you can only take dividend when you have enough profit in the company so you pay corporation tax on the profit and take the dividend simple as that, hope you understand the logic, basically you need to declare both SA AND CT to hmrc

I am planning to reinstate my company ASAP and file accounts for the Jan 2013 - Dec 2013 period (which should have done originally)! And pay off my tax and beg and plead to Home Office that they grant me ILR. This seems to be the only possible solution.

Any suggestions would be welcome. Thank you all ever so much.

[soopan123]

Hi,

Can you give your personal email can suggest you

Thanks