Overseas earnings querry for extension

priya_bhosale · Post by **priya_bhosale** » Mon Aug 04, 2008 1:29 pm

Hello,

I am an extension applicant. I am currently working in the UK and I also wish to include my earnings from India for my Indian employer.

Now the Indian employer wishes to pay me here in the UK as I am working for them in the UK dealing with their customer based in the UK.

The company is India-based and they dont have a branch or anything like that here in the UK. Now my question is:

Will my employer be able to pay me here in the UK and will I be able to pay tax on those earnings (from my Indian employer) here in the UK? If yes, then how would that work with regards to paying tax here in the UK as the company is based in India?

Please advise.

Thank you

Post by **geriatrix** » Mon Aug 04, 2008 4:12 pm

priya_bhosale wrote:Will my employer be able to pay me here in the UK and will I be able to pay tax on those earnings (from my Indian employer) here in the UK? If yes, then how would that work with regards to paying tax here in the UK as the company is based in India?

I do not think your Indian employer can pay you a salary in UK (in UK currency) unless it registers as a business entity / employer in UK. Your employer (or you, on their behalf) should seek legal / expert advice as to how this is done as per existing UK laws.

regards

priya_bhosale · Post by **priya_bhosale** » Mon Aug 04, 2008 11:05 pm

Thank you sushdmehta. Do you have any idea from where I can get such a legal/expert help?

Post by **geriatrix** » Mon Aug 04, 2008 11:41 pm

priya_bhosale wrote:Thank you sushdmehta. Do you have any idea from where I can get such a legal/expert help?

See UK Trade and Invesment (UKTI) website for more information on "Forming a company". Though the UKTI wesbite has a list of law firms which give professional advice on these matters but I suspect these would be top of the line law firms which might not suit your requirements / budget. It might be a good idea to kick-start the process by first contacting the Trade and Investment advisors at the BHCs in India and see what they have to say/suggest, before you decide to pay the lawyers their hefty fees.

regards

priya_bhosale · Post by **priya_bhosale** » Tue Aug 05, 2008 1:53 pm

Thank you sushdmehta!

Can my company in india pay me my salary here in my UK bank account instead of paying me in my indian bank account? What i mean is, I will be paying the tax on my salary in india only the money would be physically deposited here in my UK bank account.

Now if this is allowed, would that income be considered as earned in india or earned in the UK? I ask this because depending on the answer to this, i will know if i would be able to claim points for UK experience.

I hope i have made myself clear.

Thank you,
Priya

Post by **geriatrix** » Tue Aug 05, 2008 3:10 pm

Your queries are now moving from being Tier 1 / HSMP related queries to queries concerning UK / Indian tax and corporate laws. Unfortunately, I am unable to comment any further on this.

Maybe other members with specific knowledge in this domain will be able to guide / suggest.

regards

priya_bhosale · Post by **priya_bhosale** » Wed Aug 06, 2008 3:47 pm

Thats ok sushdmehta.

I have found out that my income is not taxable in india as i have been a resident of UK for this tax year.

So i will have to pay the tax in the UK on my indian income. I have confirmed this with HMRC

So I am still in doubt whether:

if i am taxed in the UK, will that be considered as my UK income?

Please advise.

Thank you,
Priya

republique · Post by **republique** » Wed Aug 06, 2008 3:58 pm

messed up post

republique · Post by **republique** » Wed Aug 06, 2008 3:59 pm

priya_bhosale wrote:Thats ok sushdmehta.

I have found out that my income is not taxable in india as i have been a resident of UK for this tax year.

So i will have to pay the tax in the UK on my indian income. I have confirmed this with HMRC

So I am still in doubt whether:

if i am taxed in the UK, will that be considered as my UK income?

Please advise.

Thank you,
Priya

By definition if it is taxed in the UK, it is uk income.
You mean will the HO consider it as UK salary for the purpose of the visa assessment.

gotcha · Post by **gotcha** » Wed Aug 06, 2008 4:08 pm

priya_bhosale wrote: if i am taxed in the UK, will that be considered as my UK income?

Actually, it depend on what evidences do you have. How you are going to pay taxes ? Does your employer is registered as PAYE ?

You mentioned in one of your previous post that you are going to claim 20 points for Â£21k income. In my understanding it would fetch 15 points. If provided all evidences.

priya_bhosale · Post by **priya_bhosale** » Thu Aug 07, 2008 1:42 pm

republique wrote:You mean will the HO consider it as UK salary for the purpose of the visa assessment.

Yes thats what i mean to ask

priya_bhosale · Post by **priya_bhosale** » Thu Aug 07, 2008 1:44 pm

gotcha wrote:Actually, it depend on what evidences do you have. How you are going to pay taxes ? Does your employer is registered as PAYE ?

Unfortunately the employer is not registered as PAYE in the UK. Evidences i am providing are my pay slips and Indian bank account statement

gotcha · Post by **gotcha** » Thu Aug 07, 2008 1:54 pm

priya_bhosale wrote:
gotcha wrote:Actually, it depend on what evidences do you have. How you are going to pay taxes ? Does your employer is registered as PAYE ?
Unfortunately the employer is not registered as PAYE in the UK. Evidences i am providing are my pay slips and Indian bank account statement

Hmmm ! I don't think , anyone would agree that salary paid in India is UK earning. Though, others may have different opinion.

Disregard my earlier statement. You should able to claim that amount as UK earning.

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Overseas earnings querry for extension

Overseas earnings querry for extension

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