- BY Colin Yeo
Financial year for Appendix FM
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In Hameed (Appendix FM – financial year) [2014] UKUT 00266 (IAC) the Upper Tribunal has no hesitation in finding that it is the tax year that applies when calculating income, not a business’ own accounting year. No actual reasons are discernible as such.
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Colin Yeo
Immigration and asylum barrister, blogger, writer and consultant at Garden Court Chambers in London and founder of the Free Movement immigration law website.
4 Responses
To be fair it looks like the Appellant did not begin to put an effective case regarding the flaws in the rules. I had the Upper Tribunal ready to strike out FM-SE for the self employed almost in its entirety but the decision went unreported because of home office non compliance with directions and the Tribunal feeling it was inappropriate to make such a dramatic ruling absent a formal response.
Upper Tribunal does not have the power to quash rules, so I think you may have a slightly overly positive view of your case!
I wonder if the same applies in relation to para 9 (income from employment and/or shares in a limited company), for example, where company accounts are required?
If I’m not mistaken, Corporation Tax accounting years and company financial years usually match, and depend on when the company was established, so could be, for example, Jan-Dec. Para 19(e) of Appendix FM-SE actually says “The financial year(s) to which paragraph 9 refers is the period of the last full financial year(s) to which the required Company Tax Return(s) CT600 relates.”
That being so, the headnote in Hameed – “The financial year for purposes of Appendix FM is the tax year, not the year selected for accounting purposes” – is misleading in certain scenarios and care needs to be exercised to avoid applying this too generally.
I am little confuse especially in case of self employment,the Tax year runs from April to April but the deadline is always next year January .What will be the tax year ??