Post
by himanshupatnaik » Wed Sep 21, 2011 6:08 pm
Tier-2 ICT - Query about Salary, Allowance, Income tax and National Insurance
I am currently on a Tier-2 ICT-Short term visa. My role is business development, relationship management and executing client projects. I have some doubts about my work/pay arrangements.
My COS stated a Gross Pay of 55,000 pounds, which was also stated in the UK employment contract which was sent to me. I am receiving this as a mix of India salary and cash allowance in UK.
After I reached UK, I was immediately put on a project and went to work at a client site. I have never been to my employer's office or done any paperwork with them. They didn't even ask for the signed employment contract. They are saying its a simple transfer from the India office to UK office, and that I am still on the India payroll
The HR guys are saying there is no need to do any paperwork, and that there is no UK income tax implications as well, since the India salary is taxed in India and the cash allowance are reimbursements. Also, they have said that short-term staff are exempt from National Insurance.
I wanted to know if there is anything illegal in this or is this interpretation correct? What procedures do you need to do after entering UK on a Tier-2 ICT visa?
Also, the company might want to change my visa later-on to ICT-long-term. Will there be any issues in proving the salary paid in the last year?
Thanks