Audited Accounts Question raised, help !!

[NettyHodgy]

Hello All.

We have now had a further S56 from our Case Officer who has advised our "unaudited" accounts are not acceptable and that audited accounts are required. Has anyone else ever received such a request? In the UK companies under a £10 million turnover are never audited, is there a way round this with a "compliance certificate" or something similar?

We have looked into having them audited but are looking at thousands of pounds to have this done?

I'm really deflated by this, we use a very professional independent accountancy firm and exceed by over £2 million the turnover demands for a 188a Visa.

Any reassurance or advise would be welcomed.

Thank you 

[rammygirl]

Have your accountant send them a statement that clarifies that audited accounts are not required in the UK and that you have complied with all uk regulations etc. worth a try and if they still insist........

I assume you are not using an agent, as they would know for sure. Sometimes a CO will ask not understanding but they may have tightened up.  

[NettyHodgy]

53 minutes ago, rammygirl said:

Have your accountant send them a statement that clarifies that audited accounts are not required in the UK and that you have complied with all uk regulations etc. worth a try and if they still insist........

I assume you are not using an agent, as they would know for sure. Sometimes a CO will ask not understanding but they may have tightened up.  

Hiya, yes. We're just waiting for the CO to respond. Our Accountants have suggested maybe a compliance certificate to be issued? Just hope they respond before the 28 days as I could be working on getting the books audited now !! 

 

[Steve Elliott]

On 26/04/2021 at 16:40, NettyHodgy said:

Hello All.

We have now had a further S56 from our Case Officer who has advised our "unaudited" accounts are not acceptable and that audited accounts are required. Has anyone else ever received such a request? In the UK companies under a £10 million turnover are never audited, is there a way round this with a "compliance certificate" or something similar?

We have looked into having them audited but are looking at thousands of pounds to have this done?

I'm really deflated by this, we use a very professional independent accountancy firm and exceed by over £2 million the turnover demands for a 188a Visa.

Any reassurance or advise would be welcomed.

Thank you 

HI Annette

From my experience with UK clients applying for Business Visas, a compliance certificates from your accountant should suffice if accompanied by an explanation re UK audit requirements. If you could evidence payment of tax liabilities paid to HMRC, that would be even better. Accounts do not have to be audited. The key is to make the decision process as easy as possible for the case officer/delegate.

Out of interest, what industry does your business operate in?

All the best

[Ken]

On 26/04/2021 at 17:38, rammygirl said:

Have your accountant send them a statement that clarifies that audited accounts are not required in the UK and that you have complied with all uk regulations etc. worth a try and if they still insist........

I assume you are not using an agent, as they would know for sure. Sometimes a CO will ask not understanding but they may have tightened up.  

Audited accounts are not required in Australia either unless turnover is over $50m (and in Australia they don't even need to be lodged with ASIC - the Australian equivalent of Companies House - unless they are public companies or meet some limited circumstance) so the fact they are asking for audited accounts may either mean they really want them or just that they have no idea. Actually it might help if you get your accountant to say that the accounts have been lodged.

[NettyHodgy]

Steve/Ken thank you very much for your replies. I now have a Certificate of Compliance, letter from our Accountants advising of UK Taxation requirements etc, and full signed accounts with HMRC Tax notices included which I'm hoping will be sufficient to comply? The frustrating thing is we turnover in excess of $4 million dollars a year so it's not like we are borderline to the amount required to fulfill the criteria.

May I also ask if you could advise me a little further please?

I have also now been asked to submit a 1139a form (Asset & Liability) for the 2020 year. In the Real Estate section it only allows for 6 properties to be entered, we own significantly more and I can't locate a continuation sheet on line anywhere, do I simply amalgamate the property liability/Asset Value figures and use a schedule attached to the form to show the properties in question including the Mortgage Statement etc?

Thank you in advance, I appreciate your assistance so very much.

 

 

[Steve Elliott]

Hi Annette

The "SALP" as we call it requires you to list the assets which you have used to claim points. You do not need to list additional assets over that amount. From my experience with UK business applicants, I have obtained official surveyor/valuer reports to support the value claimed. Letters from Estate agents or pointing to similar sales in the area are not given any weight. It's best to pay for an independent value. What I requested my last client to do was to asked for written valuations on 5th April for three consecutive years.

[NettyHodgy]

Thank you Steve I truly appreciate your guidance. I have obtained a Surveyors reports by a certified RICS Surveyor for all properties, I'm think now I have included all our properties on the 2018 & 2019 years I'm going to need to include them again so will just attached a manual extension to the 1139a form in order to list all the properties included within the Portfolio?

I'm very cheeky to ask, but one more question, on the SALPS form it has a section for "Business Ownership" what figures are needed to be entered in this secton, ie Asset value, liabilities etc? I have already provided our Accounts together with Taxation liabilities paid etc separately? 

Thank you again for all your super helpful advice

 

 

[Alan Collett]

I've never had a request for an audit certificate to accompany the accounts submitted to support a subclass 188 visa application.

However ... I always submit a client's business accounts accompanied by a letter from the independent reporting accountant.

Happy to have a freebie chat if you'd like some comfort - feel able to call my office in Hampshire if you're interested.

Best regards.

[Alan Collett]

PS.   I don't bother with the form 1139A - its too clunky/isn't intuitive to complete.

Rather, I prepare a summary of assets and liabilities at each of the balancing dates on a spreadsheet, with valuations and statements accompanying it.

Good luck!  

[NettyHodgy]

Thank you Alan, most appreciated. I had done exactly that and used a spreadsheet rather than the 1139a form itself. My query lies mainly with the what figures I enter in the Business Ownership section of the 1139a form, do I enter the turnover, value of the business in the Asset Value, then liabilities, what do enter here to create the Nett Asset value?

Again I appreciate all the assistance I am getting on here right now, thank you so much  

[Alan Collett]

3 hours ago, NettyHodgy said:

Thank you Alan, most appreciated. I had done exactly that and used a spreadsheet rather than the 1139a form itself. My query lies mainly with the what figures I enter in the Business Ownership section of the 1139a form, do I enter the turnover, value of the business in the Asset Value, then liabilities, what do enter here to create the Nett Asset value?

Again I appreciate all the assistance I am getting on here right now, thank you so much  

You take the net equity as per the business balance sheet.

Adjust for any loan account balance you have with the business.

And then multiply the result by your % ownership interest in the business.

Best regards.

[NettyHodgy]

Thank you to everyone who assisted me on this Post. I do truly appreciate your experiences and replies in helping me with my recent request from the Case Officer.

Everything has now been submitted so back to the waiting game for however long that maybe 

Thank you again