Financial Query. is Indian Salary considered? if so..

[tarunmsn1980]

Dear experts,

I am a British Citizen. I got married in May2015. My wife is in India. She never been to uk.
I am planning to apply her settlement Visa.

I am applying based on salaried category. Though I am a British Citizen at present I am working for an Indian Company in UK.
They are paying my salary in two modes.
1. UK Salary
2. India Salary.
Both the salaries they are crediting into my UK Bank.
I was with current company for 6 months.

For instance I am earning PER MONTH as

UK salary: £1000
India Salary : £5000
Where India salary (£5000) include allowances like Travel, food and adhoc allowances.
So past 6 months I have earned £36000. Have Bank stmts, Payslips, P60 form.

Now my question is :

Q.) Will UKBA accepts my India salary which includes allowances or not ?
Q.) Will they question me why my India is salary is much more higher than UK Salary?
Q.) Will they question me being a British Citizen why you are working for Indian company?

Also this is my 3rd Marriage. First two wives are not living in UK.
Q.) Should I need to inform or submit any previous marriage documents to home office at the time of my applying settlement visa?

Could you please help me with the above queries.
Thanks for your time.

Best Regards
Tarun

[Wanderer]

Have you paid UK tax on the Indian Salary?

Are you legally divorced from your other two wives?

[tarunmsn1980]

Hi Wanderer,

Yes. My employer told me they have paid India tax. But they are going to issue India tax form (From 16) at the end of June 2016. But I want apply spouse visa next week. is it mandatory to submit India IT returns form ?

Coming to previous marriage. Yes. I am legally divorced and I have relevant divorce documents.

Best Regards
Tarun

[Wanderer]

Hi Wanderer,

Yes. My employer told me they have paid India tax. But they are going to issue India tax form (From 16) at the end of June 2016. But I want apply spouse visa next week. is it mandatory to submit India IT returns form ?

Coming to previous marriage. Yes. I am legally divorced and I have relevant divorce documents.

Best Regards
Tarun

But have you paid UK tax on the Indian salary. Tax is due where the work is done, remember, so the UK will want to tax you on that too.

[tarunmsn1980]

No. I have not paid Uk tax on India Salary.

I am under impression,
I am getting UK Salary & Tax is being paid in UK.
I am getting India Salary & Tax is being paid in India.

I am really not aware that I need to Pay UK tax on Indian Salary. I will check with one of my accountant. And also contact my employer on this.
Any better advise you can suggest me ?

But thank you very much for raising this.

[CR001]

They are paying my salary in two modes.
1. UK Salary
2. India Salary.
Both the salaries they are crediting into my UK Bank.

You are receiving income in your UK bank account. This has to be declared and UK tax paid.

One has to ask why this unusual setup is happening if you are in fact working in the UK and not in India.

[Wanderer]

No. I have not paid Uk tax on India Salary.

I am under impression,
I am getting UK Salary & Tax is being paid in UK.
I am getting India Salary & Tax is being paid in India.

I am really not aware that I need to Pay UK tax on Indian Salary. I will check with one of my accountant. And also contact my employer on this.
Any better advise you can suggest me ?

But thank you very much for raising this.

If a foreign company is paying a UK resident then it should operate UK PAYE. If paid under foreign terms then if a DTA is in place (Double Taxation Agreement) then your case you pay Indian tax, and under the DTA, if UK tax is higher (which it will be) you pay the difference to UK HMRC.

If no DTA then there is a massive hole, since you need to work out the tax liabilities yourself or engage a tax specialist.

And if you are getting accom. allowance etc, there is a BIK to be paid to HMRC, looks very messy, you need to sort it out quickly HMRC is very aggressive as we've seen on here, they will rip you a new one to get their money.

[tarunmsn1980]

hmmm no good . Though its panic but that's really quite valuable information. Lot of depth in this. Once again many thanks Wanderer for pointing. Initially my employer told there is some "India UK Tax treaty".
I will have word with my employer and also CA.

Plan B: In worst case can I apply FAMILY VISITOR VISA for my wife?
After 6 months she can go India and apply for settlement visa.

Best Regards
Tarun

[CR001]

Plan B: In worst case can I apply FAMILY VISITOR VISA for my wife?
After 6 months she can go India and apply for settlement visa.

You can try but she might not get one as what will she provide as evidence of her strong ties, personal and financial circumstances in her home country to convince the ECO that she is a 'genuine visitor' and will leave the UK. Staying 6 months on a visit visa is not visiting, it is 'residing'.

[Wanderer]

hmmm no good . Though its panic but that's really quite valuable information. Lot of depth in this. Once again many thanks Wanderer for pointing. Initially my employer told there is some "India UK Tax treaty".
I will have word with my employer and also CA.

Plan B: In worst case can I apply FAMILY VISITOR VISA for my wife?
After 6 months she can go India and apply for settlement visa.

Best Regards
Tarun

There is a tax treaty, the DTA, means you pay tax in India, the if UK tax is higher, which it probably is (I've no idea really) you pay the difference to UK HMRC. And vice versa, if India tax is higher, you get a rebate...

Tax advisor will know.

[tarunmsn1980]

Thank you very much All . My special thanks to Wanderer for pointing to new loop hole. Tomorrow i have appointment with my CA and employer. will update you. Once again thank you ALL.