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Income tax on Overseas earnings

Posted: Sat Sep 19, 2015 3:36 am
by martinstroke
Hello Members,

I have been a silent member of this forum and I have really found it very helpful and interactive. I have a few questions on the above subject matter, having searched through the forum but cannot find any explicit information in regards to this.
My scenarios and questions are as described below:

1. I am due to apply for ILR based on a tier 1(G) from Next year 2016 and considering that I have worked overseas during some of the months albeit less than the 180 days allowed to be out of country. i do intend to combine my Overseas earnings with my present UK earnings, to make up for the shortfall. My question is Do I have to pay any income tax and NI to the HMRC considering that I have already paid all the taxes on the overseas earnings at source.

Please note, I have in my last extension used of my Tier 1 (G) used overseas earnings in conjunction with my UK earnings and all taxes were deducted from source abroad. I attended a PEO appointment and it was a straightforward case and I was not asked any question at all.

I am only trying to make sure I am on the right track with my applications due to ever changing immigration laws and requirements.

I will be very grateful if any of the members or moderators with a detailed knowledge about this can please be of help. Every little contribution will be appreciated.

M

Re: Income tax on Overseas earnings

Posted: Sat Sep 19, 2015 11:21 am
by Wanderer
The normal rules are if there is a DTA in place between the two countries in question, you pay the tax in the other country, and the difference in UK.

That's the simple scenario, if no DTA things get messy, best to employ a tax specialist.

Are you trading as a Ltd?

Re: Income tax on Overseas earnings

Posted: Sat Sep 19, 2015 1:26 pm
by aliq09
Lets suppose every thing goes fine but my opinion will be for the following line:

i do intend to combine my Overseas earnings with my present UK earnings, to make up for the shortfall.

HO now a days is really tight on these equations which produce a sum of salary while combining all the factors. I will suggest you to take extra care with documentary proof of what is given to you under overseas heading it may include but not limited to ( Existing or old contracts , Salary slip , Tax reduction at source, best possible person overseas to confirm what is been presented to HO ) . I will strongly advice you if you can wait , make your earning match with UK only salary . As one of the member asked ::: are you operating in Limited company structure ? if your answer is yes than you have to consider it really carefully. All the best!

Re: Income tax on Overseas earnings

Posted: Thu Jul 21, 2016 8:54 pm
by uktierone
Hi Martin

I am in the similar situation as yours.

Did you apply for your ILR, would you help me in sharing your experience.

Regards

Re: Income tax on Overseas earnings

Posted: Mon Jan 16, 2017 10:34 pm
by uktierone
Hi Martin

Many congratulations on ILR approval.

I have a similar situation as yours in which I got my first Tier 1 (General) extension done in combination of UK PAYE and Overseas PAYE.

Appreciate if you can suggest the documentation we need to submit specifically for the overseas income and is there any Tax related document we need to submit for Overseas Income ?

Regards