Tier 1 (General) extension with overseas income

Dear All forum members.

have got only overseas income and doing IT lecturer job in the UK. I am registered self employed where the monies earned. Shall I have to pay tax in overseas or in the UK? Can i claim earning points against overseas income? extension due on March-13

Guidance policy says
Official tax document produced by
the tax authority or employer, showing
earnings on which tax has been paid or will
be paid in a tax year. For these purposes,
we define official tax documents as:

• a document produced by a tax authority
that shows details of declarable taxable
income on which tax has been paid or will
be paid in a tax year (for example a tax
refund letter or tax demand);

• a document produced by an employer as
an official return to a tax authority, showing
details of earnings on which tax has been
paid in a tax year (for example a P60 in the
United Kingdom); or

• a document produced by a person,
business, or company as an official return
to a tax authority, showing details of
earnings on which tax has been paid or
will be paid in a tax year. The document
must have been approved, registered,
or stamped by the tax authority (this is
particularly relevant to some overseas tax
systems, for example SARAL in India).

senior put light on the above scenario please

shirish1975 wrote: Basic (Taxable) =X
London Allowance (Taxable)=Y
Non Taxable Allowance=Z

Total Gross = X + Y+ Z (shows on payslip)

Total Taxable Gross= X+Y

So what amount is considered for my Tier1 extension application. Is it Total Gross or the Total Taxable Gross amount X no of months.

Please take a look at the T1G guidance on previous earnings (Page 20):

http://www.ukba.homeoffice.gov.uk/sitec ... idance.pdf

So long as the allowances you have mentioned (irrespective of whether they are taxable or not) do not fall under the points listed under 102, then you should be able to include them as part of your previous earnings.

101. Earnings may include, among other things:
• salaries (includes full-time, part-time, and bonuses);
• earnings from self-employment;
• earnings from business activities;
• statutory and contractual maternity pay and statutory and contractual adoption pay;
• allowances (such as accommodation, schooling or car allowances) that form part of an applicant’s remuneration package;
• dividends paid by a company in which the applicant is active in the day-to-day management, or where the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, where this forms part of the applicant’s business; and
• payment in lieu of notice (a payment made instead of requiring an employee to work the normal period of notice when leaving a job).

102. Unearned sources of income that we will not consider as previous earnings include:
• expenses (such as accommodation, schooling or car allowances) that reimburse the applicant for money he/she has previously spent;
• dividends, unless paid by a company in which the applicant is active in the day-today management, or unless the applicant receives the dividend as part or all of his/her remuneration package;
• income from property rental, unless this forms part of the applicant’s business;
• interest on savings and investments;
• funds that were inherited;
• money paid to the applicant as a pension;
• expenses where the payment reimburses the applicant for money he/she has previously spent;
• redundancy payment;
• sponsorship for periods of study;
• state benefits; or
• prize money or competition winnings, other than where they are directly related to the applicant’s main profession or occupation.

Dear cs95tdg,
Thanks for kind reply.

I read couple of forums regarding for tier 1 extension on the basis of overseas earning self employed . I come across that tax has to be paid in the UK and also where the money was earned. But the policy guidance says

a document produced by an employer as
an official return to a tax authority, showing
details of earnings on which tax has been
paid in a tax year (for example a P60 in the
United Kingdom);

or

• a document produced by a person,
business, or company as an official return
to a tax authority, showing details of
earnings on which tax has been paid or
will be paid in a tax year. The document
must have been approved, registered,
or stamped by the tax authority (this is
particularly relevant to some overseas tax
systems, for example SARAL in India).

bit confused

Thanks

mharoon79 wrote:Dear cs95tdg,
Thanks for kind reply.

I read couple of forums regarding for tier 1 extension on the basis of overseas earning self employed . I come across that tax has to be paid in the UK and also where the money was earned. But the policy guidance says

a document produced by an employer as
an official return to a tax authority, showing
details of earnings on which tax has been
paid in a tax year (for example a P60 in the
United Kingdom);

or

• a document produced by a person,
business, or company as an official return
to a tax authority, showing details of
earnings on which tax has been paid or
will be paid in a tax year. The document
must have been approved, registered,
or stamped by the tax authority (this is
particularly relevant to some overseas tax
systems, for example SARAL in India).

bit confused

Thanks

Any advice?
I am registered self employed in the UK and overseas where the monies was credit