Errors or incomplete reporting of taxable self-assessment income – impact on naturalisation British citizenship and spouse visa applications

Financial requirements for UK immigration applications

For many UK visa categories, there is financial requirement which needs to be met for successful immigration application. In addition, payment of taxes is important for good character requirement in naturalisation application to become British citizen.

For example, proof of income for spouse visa application is key to successful outcome. As part of the immigration process, applicants are required to disclose to Home Office their finances and to provide specified documentary evidence. It should not be a problem in most cases, especially those who rely on their tax assessed by the HMRC automatically through their employers PAYE system. However, problems frequently arise when someone runs a business and submits their own tax assessments.

Problems that can arise when self reporting income

Many UK residents are required to fill a Self-Assessment Tax Return and/or self-report their limited company’s income to HMRC. Those who are subject to the self reporting regime include self-employed sole traders and those individuals who are directors of own limited company. We are not qualified accounting firm and the technical details of who and when should fill Tax Returns and what information to report, is outside of the scope of this article.

Nevertheless, we’ve noticed that in many cases, those who are self-employed or are directors of own limited company, sometimes have different reported income and the actual one. Those differences may impact on the immigration applications, as Home Office checks the information provided by the applicant against the HMRC records.

Self assessment tax and Home Office applications

Anyone planning to submit an immigration application requiring financial information provided to Home Office should be prepared. This is particularly important for those who are subject to self assessment tax reporting regimes. You need to ensure the tax return documents are reflected in the bank records, payslips, dividend vouchers, etc.

The risk of HMRC audit still exists. Crucial fact to remember is that non-reporting or errors can result in a refused application to the Home Office.