Tier 1 General Extension-2 Country Self employed Earnings?

[Noman Bashir]

Hello, I have to apply for tier 1 general extension. For this I want to show self-employment in India and UK. I understand that no Uplift ratios will be applied. I will remain in UK some time and some time in India.

I want to know whether I can claim self-employment earnings from India for the period I am in UK? Is there any rule about physical presence in case of self-employment? Can you please provide me relevant documentation from UKBA website as it is not mentioned in the policy guidance.

Timely expert advise will be appreciated.

[Noman Bashir]

Any help!

[MB243]

I guess there is no restriction, you can claim earnings in a US bank account for work done from India for your UK Tier 1 extension as long as its within the continuous 12 month period but better double check

[AccountantMatthew]

For UKBA purposes: See 108 in the Tier 1 General Guidance. Is that what you mean?

For tax purposes: Unable to say based on what you have provided here. It depends on a number of factors with regards to where you are taxed and what you are taxed on.

It's best that you pay for some formal advice and for someone to complete your tax returns for you. It's not the sort of advice you'll get for free I'm afraid.

[Noman Bashir]

Thank you AccountantMatthew and MB243. I think I did not clarify my point. I meant self-employment earnings in India (with a different) company as a partner and self-employment earnings in UK( with a different company) as a proprietor. Hence tax will be paid in different countries (India and UK) by the respective companies.

Does it make sense? I hope it does.

I am mainly concerned about physical presence. Is it a requirement that I have to stay in India to claim Indian earnings and UK for UK earnings for the whole period? What If I divide time between 2 countries.

Please help me experts!

[AccountantMatthew]

From a tax perspective the answer is still the same - you will require formal, professional advice.

Depending on your residency status you may find yourself paying UK tax on your worldwide earnings (but double taxation relief may be available). A number of factors come into play, of which physical presence and the legal structure of each business are but two.

From a UKBA perspective, the information can be found in section 92 to section 120 in the Tier 1 general guidance.