Self employed tax question regarding Visa application UK

[Warunee79]

Hi

My wife and I will be applying for a settled person visa to the UK soon.

I have been self employed for 16 months and started mid April 2015 so a full financial year has passed. I have filed a tax return online and have my tax figures that will be due in January 2017 so I do not owe anything from previous years but tax/insurance will be due Jan 2017.

My question is , when considering my finances will the embassy check with HM revenue if I am upto date or owe anything?

As I called HM revenue and they say nothing is owed only due next year. I got some advice and I'm not sure if it's genuine! The advice was to make sure everything is paid regarding tax etc I would prefer to pay it all in January but am concerned it will effect the visa application if when the embassy call HM they say nothing has been paid yet.

I was told the embassy will/may call HM revenue to check my status.

Any help please ?

Thanks

[Liquorice]

They usually request the last 6 months bank statements and a letter from your employer as proof of income.

When I was self employed they requested 3 years accounts, which I was just short of, but they accepted a letter from an Accountant projecting my income along with the previous two years accounts. I also supplied my last 6 months bank statements and my last statement from HMR showing tax paid for the previous period.

They do take into account the rules for paying tax when self employed, but you would be well advised to submit any previous evidence such as a P45 from your last employment to show your tax payments were up to date prior to self employment.

[Kwasaki]

If you have been a good boy also up to date previous to self-employment and can get a letter from previous employer you maybe OK.

Has your Thai wife been to UK before, have a friend self-employment going through the same procedure whose wife got holiday visa first and now re-applying for settlement.

I'll ask him how his doing.

[evadgib]

Published yesterday:

Webinars, e-learning, emails and videos if you're self-employed

HTH

[kennypowers]

You don't need to have paid the tax because it isn't due yet and this is stated on your return. You only to have filed the return and provide the following:

Your tax return

Statements of your bank account showing the money going in from your business for the 12-month period

The SA302 form (statement of account)

Proof of registration with HMRC

Evidence of ongoing employment through payment of National Insurance (statement from HMRC)

Most importantly though:

If the applicant's business is a registered company that is required to produce annual audited accounts, the latest such accounts; or if the applicant's business is not required to produce annual audited accounts, the latest unaudited accounts and an accountant's certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006).

You must have this accountant's letter.

[Warunee79]

Hi Faz

When you say requested do you mean after they had gone through your application they contacted you?

I will be able to get a letter from my accountant stating a projection, earnings etc to go along with my self assessment ,SA302 and bank statements.

Would anyone advise me to make any tax payments not due until 31st Jan 2017 to pay now? Or be contributing towards it? Even though it's not due! Will they take it into account. I can see how it would look good if I'd already paid what was due next January as I'm fairly new to self employment.

No Kwasaki my wife has not been to the UK before, our visit visa was denied unfortunately.

Thanks for the info

[Warunee79]

Does the SA302 show 3 years of tax or when I started self employment ? If I show an SA302 now it will show very little unless I pay what is due in Jan 2017, As I was in a low paid job before I started self employment 16 months ago and was not liable to pay tax so would it be a sensible option to pay now? Obviously I would prefer to not pay thousands of pounds of tax now when I need funds for the visa etc I want my history to look as good as it can so what do you think ? Pay all now, start paying monthly or wait till it's due.!

Thanks Kenny also for your info ??

Edited July 28, 2016 by Warunee79

[Tony M]

You don't need to have paid the tax because it isn't due yet and this is stated on your return. You only to have filed the return and provide the following:

Your tax return

Statements of your bank account showing the money going in from your business for the 12-month period

The SA302 form (statement of account)

Proof of registration with HMRC

Evidence of ongoing employment through payment of National Insurance (statement from HMRC)

Most importantly though:

If the applicant's business is a registered company that is required to produce annual audited accounts, the latest such accounts; or if the applicant's business is not required to produce annual audited accounts, the latest unaudited accounts and an accountant's certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006).

You must have this accountant's letter.

With respect, if you are going to give advice, then please make it the correct advice. The wrong information may cause the application to be refused. You have wrongly stated that the OP needs "only to provide the following...........", and that is wrong. For instance, there is a requirement for evidence of Class 2 National Insurance contributions paid that you have not mentioned. If that evidence is not provided, the application will be refused. There is also other evidence that you have not mentioned but which is required.

Firstly, the requirement regarding your unpaid tax is (my emphasis) :

"Evidence of the amount of tax payable, paid and unpaid for the last full financial year."

The rest of the requirements are below. The SA302 now forms part of the SA100 ( the Self-Assessment Tax Return, and your SA100 should have that already (at the end) if it is for 2015/2016 :

"The following documents for the last full financial year, or for the last two such years (where those documents show the necessary level of gross income as an average of those two years):

(I) Annual self-assessment tax return to HMRC (a copy or print-out);

(ii) Statement of Account (SA300 or SA302).

Proof of registration with HMRC as self-employed if available.

Each partner's Unique Tax Reference Number (UTR) and/or the UTR of the partnership or business.

Where the person holds or held a separate business bank account(s), bank statements for the same 12-month period as the tax return(s).

Personal bank statements for the same 12-month period as the tax return(s) showing that the income from self-employment has been paid into an account in the name of the person or in the name of the person and their partner jointly.

Evidence of ongoing self-employment through evidence of payment of Class 2 National Insurance contributions, or (where the person has reached state pension age) through alternative evidence (which may include, but is not confined to, evidence of ongoing payment of business rates, business-related insurance premiums, employer National Insurance contributions or franchise payments to the parent company).

One of the following documents must also be submitted:

i (aa) If the business is required to produce annual audited accounts, such accounts for the last full financial year; or

(bb) If the business is not required to produce annual audited accounts, unaudited accounts for the last full financial year and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006);

ii A certificate of VAT registration and the VAT return for the last full financial year (a copy or print-out) confirming the VAT registration number, if turnover is in excess of £79,000 or was in excess of the threshold which applied during the last full financial year;

iii Evidence to show appropriate planning permission or local planning authority consent is held to operate the type/class of business at the trading address (where this is a local authority requirement);

iv A franchise agreement signed by both parties."

In addition, there must be evidence of ongoing self-employment

[Warunee79]

Thank you Tony

Would ongoing self employment evidence be such as a letter from my accountant with a projection of my business? Or?

[kennypowers]

You don't need to have paid the tax because it isn't due yet and this is stated on your return. You only to have filed the return and provide the following:

Your tax return

Statements of your bank account showing the money going in from your business for the 12-month period

The SA302 form (statement of account)

Proof of registration with HMRC

Evidence of ongoing employment through payment of National Insurance (statement from HMRC)

Most importantly though:

If the applicant's business is a registered company that is required to produce annual audited accounts, the latest such accounts; or if the applicant's business is not required to produce annual audited accounts, the latest unaudited accounts and an accountant's certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006).

You must have this accountant's letter.

With respect, if you are going to give advice, then please make it the correct advice. The wrong information may cause the application to be refused. You have wrongly stated that the OP needs "only to provide the following...........", and that is wrong. For instance, there is a requirement for evidence of Class 2 National Insurance contributions paid that you have not mentioned. If that evidence is not provided, the application will be refused. There is also other evidence that you have not mentioned but which is required.

Firstly, the requirement regarding your unpaid tax is (my emphasis) :

"Evidence of the amount of tax payable, paid and unpaid for the last full financial year."

The rest of the requirements are below. The SA302 now forms part of the SA100 ( the Self-Assessment Tax Return, and your SA100 should have that already (at the end) if it is for 2015/2016 :

"The following documents for the last full financial year, or for the last two such years (where those documents show the necessary level of gross income as an average of those two years):

(I) Annual self-assessment tax return to HMRC (a copy or print-out);

(ii) Statement of Account (SA300 or SA302).

Proof of registration with HMRC as self-employed if available.

Each partner's Unique Tax Reference Number (UTR) and/or the UTR of the partnership or business.

Where the person holds or held a separate business bank account(s), bank statements for the same 12-month period as the tax return(s).

Personal bank statements for the same 12-month period as the tax return(s) showing that the income from self-employment has been paid into an account in the name of the person or in the name of the person and their partner jointly.

Evidence of ongoing self-employment through evidence of payment of Class 2 National Insurance contributions, or (where the person has reached state pension age) through alternative evidence (which may include, but is not confined to, evidence of ongoing payment of business rates, business-related insurance premiums, employer National Insurance contributions or franchise payments to the parent company).

One of the following documents must also be submitted:

i (aa) If the business is required to produce annual audited accounts, such accounts for the last full financial year; or

(bb) If the business is not required to produce annual audited accounts, unaudited accounts for the last full financial year and an accountant’s certificate of confirmation, from an accountant who is a member of a UK Recognised Supervisory Body (as defined in the Companies Act 2006);

ii A certificate of VAT registration and the VAT return for the last full financial year (a copy or print-out) confirming the VAT registration number, if turnover is in excess of £79,000 or was in excess of the threshold which applied during the last full financial year;

iii Evidence to show appropriate planning permission or local planning authority consent is held to operate the type/class of business at the trading address (where this is a local authority requirement);

iv A franchise agreement signed by both parties."

In addition, there must be evidence of ongoing self-employment

Okay my bad, I meant (Class 2) national insurance contributions. Though since Aug 2015 these are now paid along with your tax return.

You say - "Evidence of the amount of tax payable, paid and unpaid for the last full financial year." -- This is clearly stated on my tax return as prepared by my accountant.

[Tony M]

Thank you Tony

Would ongoing self employment evidence be such as a letter from my accountant with a projection of my business? Or?

The guidance has been amended slightly to reflect the problem of evidencing Class 2 contributions. The guidance now says (my emphasis) :

The method of collecting Class 2 National Insurance contributions for self-employed people changed with effect from April 2016. This means the requirement at paragraph 7(g) of Appendix FM-SE cannot be met. We will look to amend the rules to reflect this change in due course. In the meantime, those affected can rely on the provision at paragraph D(e) of Appendix FM-SE and provide some alternative evidence to show ongoing self-employment, e.g. one of those suggested at paragraph 7(g) for those self-employed people of state pension age who do not pay Class 2 National Insurance contributions, evidence of payment of some other business-related cost such as a licence to trade or a taxi licence, or bank statements showing ongoing receipt of self-employment income.

[Liquorice]

Hi Faz

When you say requested do you mean after they had gone through your application they contacted you?

Sorry, I should have been clearer. By requested, I mean by the Guidance Notes and Documents required as posted on the UKBA site.

That was some years ago, TonyM has given some very good advice and an update on the new requirements when self employed.

You said your wife was previously refused a Visitor Visa!

Were you married at the time and what was the reason for refusal?

[Warunee79]

Thanks Faz

No we were not married at the time, the refused visit visa was 1 year ago. We got married this year!

Being honest the refusal was completely understandable, my wife told a lie to her boss at the time about the reason she wanted time off, embassy called the company she worked at and were told conflicting reasons.

Secondly, my wife added tons of transcript thinking it would be helpful but with her limited English never noticed a statement I made 2 years ago regarding work, at that time I wasn't aware of the rules with work/visit visa, I'd mentioned some cash work in the statement! I know how stupid and naive we were so please don't remind me of that!

Thirdly, they said my wife did not answer basic questions about us adequately, well they called her while she was at work, she felt on the spot and was surprised by the call, she could not pronounce my surname, forgot my birthday etc Again, we were unprepared and naive!

My main concern is rectifying this if I can in my sponsor letter to them they say I need to make a reasonable explanation for this! My solicitor said they will hold this against us now. The statement was made 2 years ago!

Another question- regarding a letter from my accountant to include with my self employment documents, To whom do I address the letter to?

Many thanks

Edited July 29, 2016 by Warunee79

[Liquorice]

I always addressed anything like that as 'To Whom It May Concern' as you don't know if the IO will be male or female.

The fact your then girlfriend was refused a Visitor Visa, shouldn't really have any impact on your new application as the circumstances are now completely different, Settlement as the wife of a British citizen, as long as you can both meet the requirements.

If you had lied or supplied false documents to the UKBA on your previous application, then they would have imposed a ban on further applications for a period of time and you would have been advised of that fact.

I can understand your wife telling a 'porky' to her Boss. I've known women dismissed in Asia for saying they had a foreign boyfriend, or for mentioning starting a family. The Boss wants long term workers he can rely on, not someone who may leave the following year because of marriage or having children.

[Warunee79]

Thanks Faz

No we have not lied to UKBA or provided any false documents, they say we will need to provide compelling new evidence with our next application. UKBA telephone called my wife (girlfriend at the time), she told the truth but stuttered, couldnt pronounce my full name , forgot birthday and didn't know my address. As you say , she was worried about the impact on her job/reaction from the boss.

Also they state "you have failed to show sufficiently strong family, social or economic ties to Thailand"

[rasg]

My main concern is rectifying this if I can in my sponsor letter to them they say I need to make a reasonable explanation for this! My solicitor said they will hold this against us now. The statement was made 2 years ago!

You will still have to address those concerns of the ECO from the last visa. The only difference is that you don't need a reason for return for a Settlement visa.

I would seriously suggest that you email the visa financial requirements to your accountant and get him to prepare your paperwork. That what I did. It cost me £100 and it was money well spent.