Immigration Rules

Jim Shannon Excerpts

Wednesday 7th July 2021 Westminster Hall

[Kevin Foster]

There are a number of processes that we are going through, but it might be helpful if I set out the scale of the discrepancies. In cases where investigations have been completed, there were instances of applicants claiming points for earnings that were, in 80% of cases refused, at least £10,000 higher and, on average, £27,600 higher than the earnings shown by their tax records. We would all agree that those are not minor errors. In any context where we were talking about someone with a discrepancy of £27,000 on their tax return, we would probably make a point about whether they were paying the tax they should be paying.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Glasgow North East (Anne McLaughlin) on securing the debate. Will the Minister outline what steps his Department will take in conjunction with HMRC to investigate whether the tax discrepancies of highly skilled migrants refused indefinite leave to remain met the normal HMRC deliberate or careless threshold? How did the Department determine that such discrepancies constitute bad character?

[Kevin Foster]

We do so by sharing information between the two Departments. If someone gives information about their salary to one part of Government, saying that it is an honest declaration of their tax position to meet taxation laws, it should not come as a huge surprise if that is then considered when looking at a declaration of income that they have made to another part of Government relating to rules on immigration status.

Let us be clear that not all tier 1 general cases share those characteristics. Many applicants did find highly skilled employment, and the vast majority were successful in their applications. There are outstanding cases because it is important that we take the time to get to the bottom of concerns in those outstanding cases and establish whose earnings were genuine and whose were not.

With regard to the tax discrepancies, the Home Office does not trawl through people’s tax records looking for any errors or discrepancies in order to refuse applications. Where we have checked tax records, it is because the evidence of an applicant’s claimed earnings was not strong, and we were actually looking for further evidence to support their claims and grant their applications, as we are doing in other parts of the immigration system. Sadly, all too often our investigations found their tax records did not support the claims they made to the Home Office about their earnings.

It is interesting to note that when it became widely known that we were doing that, HMRC saw a surge in requests from tier 1 general visa holders to make some highly unusual amendments to their tax records, often involving large amounts solely for the earnings periods relied on in visa applications. That pattern was actually so unusual that HMRC brought it directly to the Home Office’s attention.

Again, we are not talking about the sorts of minor discrepancies or tax errors that HMRC deals with day in, day out. Our investigations show instances of individuals increasing their earnings on their tax records, waiting until a Home Office application is granted and then amending their earnings back down again so that they do not have to pay the extra tax that these variations would have incurred.