Very Urgent Tier1 G Extension Query

Hi,

Can I apply for Tier1 General Extension based on my overseas earnings? Based on what is mentioned in the guidance below it seems that it is acceptable to UKBA.

What about the taxation in such case? Am I liable to pay any tax on the money earned overseas?

Assessment of previous earnings

92. We will assess an applicant’s earnings. If an applicant is in salaried employment, (including a Director of a company for example) we will assess the applicant’s gross salary before tax. This also includes selfemployed
applicants who draw a salary from their businesses. If the applicant earned the money in a country with no tax system, we will consider his/her total earnings for the period.

Converting overseas earnings into pounds
sterling (£)

105. Earnings made overseas must be converted into pounds sterling so that we can assess them. The offi cial exchange rate we use is the one produced by OANDA.
106. An applicant should use the closing exchange rate on the OANDA website at www.oanda.com/currency/classic-converter on the last day of the period for which he/she has claimed earnings in that currency. This is an independent website, for which we are not responsible.

you can apply for extn based on your overseas earnings.

what type of income is this ? if you earned them as a self-employed person in the UK then you will have a tax obligation. if it is salary income which you earned while being present overseas then you will already have paid tax in the country of earning, and need not pay tax in the UK

why is this question very urgent ?

I do not know what category would it fall in. I am working as a contractor for a limited company in UK but am based in Dubai UAE due to the nature of the work. Each month, i invoice the company and the company pays me directly in Dubai since i am based here. I didn't pay anything as tax so far. There is no taxation in Dubai.

Its urgent because I have already booked an appointment at Sheffield PEO to file for an extension in 10 days time and I am trying to gather my evidence documents.

understood. wait for accountantmatthew and others to reply on the taxation part. how does the company pay you ? by cheque/bank transfer i guess ?
because you will need bank statements and payslips as evidence if you choose to apply as a person employed in Dubai, bypassing the whole UK limited company thing. to me it looks like you will have a tax obligation in UK if you decide to apply as self-employed in UK. it may be better, if possible, to apply as a self-employed person/freelancer of UAE. you can avoid paying taxes in UK then.

The company pays me as "bank transfers".

Please explain on what do you mean by "it may be better, if possible, to apply as a self-employed person/freelancer of UAE"? Did you mean it would be better to forget about limited company and just apply as being employed in UAE? I would need to substantiate my income with bank statements and income statement/payslips from within UAE then?

Can i get indefinite renewals on my Tier1 G if i apply this way each time although this won't contribute a single penny towards ILR right or this would be considered rather as an exploitation of the system?

UKT1G wrote:The company pays me as "bank transfers".

Please explain on what do you mean by "it may be better, if possible, to apply as a self-employed person/freelancer of UAE"? Did you mean it would be better to forget about limited company and just apply as being employed in UAE? I would need to substantiate my income with bank statements and income statement/payslips from within UAE then?

Can i get indefinite renewals on my Tier1 G if i apply this way each time although this won't contribute a single penny towards ILR right or this would be considered rather as an exploitation of the system?

right. you could apply as employed in UAE. much simpler and cheaper if you count the tax savings. all this is well within the rules. many such successful extension applications have been made, search this forum for details.

you will need payslips and bank statements by way of previous earnings evidence from two sources. as long as your docs are as in order there shouldn't be a problem. as per current rules you can renew indefinitely in this way(same as those physically present in the UK)

UKT1G wrote: Can i get indefinite renewals on my Tier1 G if i apply this way each time although this won't contribute a single penny towards ILR right or this would be considered rather as an exploitation of the system?

hey...just saw this. this is not an exploitation of the system. this is how it is designed to work. UK BA don't need you to 'contribute' money towards ILR or anything else. the visa fee is what they are after. and ofcourse you contribute to the economy when you fly there for applying. you won't get your ILR because you will be out of the country most of the time, but there is no other drawback or cheating here.

Thanks for your replies. I would be eligible for ILR once i complete my 5 years residence there right?

Unfortunately not, You need to stay in UK for 5 years to be able to apply for ILR

All the best

What i mean was that till the time i decide to move in to the UK and settle there, can i get extensions on my tier1 general based on qualifying on PBS points?

If yes, then once i have completed 5 years on extensions i should be able to apply for an ILR right?

UKT1G wrote:What i mean was that till the time i decide to move in to the UK and settle there, can i get extensions on my tier1 general based on qualifying on PBS points?

If yes, then once i have completed 5 years on extensions i should be able to apply for an ILR right?

IF the rules don't change then you can keep extending your tier1 without staying in the UK. but nobody knows the answer of this IF, what will happen in the future.

to be eligible for ILR you need to satisfy the requirements, the most important requirement is you must have stayed in UK for five years with something like a total of 180 days allowed outside UK in the fiver year period, and never for more than 90 days at a stretch. double check the ILR requirements.

What do i need to fill in for the last two years address? I stay with my brother every time I go to the UK. Can i use his address instead of overseas address for last two years? I mean i would have lived at this address if i were in UK during this time.

So all in i would be having following supporting documents for my Tier1 General Extension application:-

Age: I was 28 when i filed my first Tier1 General application from outside UK. I submitted my biometrics at UK embassy on 28/03/2009 but visa was granted on 24/06/2009. So would UKBA have this in their record or i need a proof that i submitted my application on 28/03/2009?

Qualifications: My qualifications were on the UKBA databse at the time of my first application so i do not need to prove this.


UK Work Experience: Not claiming any points.

Previous Earnings: Employed full time overseas in a tax free country. Bank Statements for 12 months, a detailed letter from employer showing the salary paid to me on 12 months period. No tax document added.

Am good for maintenance and language. Should these things work out fine for same day service?

address : use the address where you actually lived. not where you would have lived.

age: they will have a record of your initial application.no separate doc needed for age attribute

qualification: if its the same qualification for which you were awarded points in the initial application then you don't need to submit again. just mention this fact

previous earnings: bank statements and letter from employer showing gross and net payments, matching bank salary credits is sufficient. ensure bank statement on official stationary. tax docs not needed.

you should be fine for same day service. but if case worker feels h/she needs to carry out further checks your application will be treated as a postal one from there on. you will still gain a month or two over postal applicants as that's how much time is being taken nowadays for postal applications to get their payment and biometrics taken

From your PM UKT1G (as my signature says, I can't answer PMs so please don't send)

I need your advice with regards to tax payment on full time employment in foriegn country where there is no taxation.

I am filing for Tier1 General Extension with overseas employment. Do i need to show any tax returns in UK?

This will depend on your residence, ordinary residence and domicile. It's best to seek out and pay for formal professional advice here as it can't be answered on the basis of the information you have provided in this post ... plus it's not the kind of info you're going to get for free from a tax consultant.