Previous Earnings and Tax Related Query!

[Tishu123]

Hi,

My wife had applied for tier 1 gen visa in April 2011 on the basis of Salary plus Self employment. The accountant then made the final accounts and she paid the tax as advised. But the issue is that the accountant erroneously(to reduce the tax liability) showed some extra expenses which reduced my wife's tax bill. Now I am wondering if this will be an issue when she goes for the ILR next year in April (2016), as the amounts differ in HMRC and UKBA. What is the option before her? Should she write to HMRC and inform them that there was an error which she noticed in the 2011-2012 tax return and then amend it and pay the remaining tax, so that UKBA does not question it? I read in the forum that few of the applicant's ILR has been refused due to mismatch in earnings claimed and tax paid.

Please advise.

[Tahakhan]

Hi,
You don't need to worry, as it is random check and can happen with any application not for ILR. I have been silent visitor of this portal and to be honest I was too scared to apply before clearing my old tax liabilities, but took a chance and made an appointment for last week
I just got approved myILR at Solihull PEO on last Thursday and it was same on Self employment and Salary and the point to share is that I did not pay any tax on both occassion. i.e first application and extention.
I might be lucky but after being in appointment, I can tell you that if HO would have any doubts " on balance of probabilities then they can investigate anything not just TAX

So take it easy and go with confidence.

[Wanderer]

You do need to worry as this is deception and fraud, and your wife is responsible for the accuracy of the accounts with the 'erroneous' expenses.

[Tishu123]

Thanks for the response. I agree that it is my wife's responsibility to ensure the accuracy of the accounts. She is now asking the chartered accountant to amend the returns and file the correct return and tax liability. Any idea how much time this process of amending and filing the new returns take?

Thanks

[Tishu123]

anyone? seniors please advise.

also, just to let you know that my wife had claimed the points by shoiwng only 9 months of earnings as she was very well eligible for the extension. she was working as a contractor with a very big international firm. so she showed 9 months of earnings and got her Toer 1 extension in March 2013. However while filing the tax returns (as any CA generally raise the expenses a bit to lower the tax liability), her CA also did the same, unaware of the fact that it may be an issue for my wife when she goes for ILR. There is absolutely no decpetion/fraud involved in her earnings and the earnings were 100% genuine which can be verified by anybody. But as I said, mistake has happened in terms of filing the return and now she is looking to rectify it. Can someone suggest how long does it take with HMRC to get all these things sorted. she has around 9 months time left on her visa.

Any seniors?

Thanks