Overseas Income | payment made via cheque/money transfer

[WRS]

Hi, on behalf of my colleague:

I am due for tier 1 extension in Oct 2012, I have not entered Uk on my tier 1 visa but intend to extend it on the basis of my overseas income. I am providing consultancy to an employer in Saudi Arabia. Since I am on business work visit visa hence I don't have a bank account in Saudi Arabia. There are two scenarios:

1. My employer issues me a cheque and i cash it in the bank and then transfers the amount to my bank account in Pakistan via money transfer network (I have the money transfer receipts with me).Saudia is tax fee country and I transfer the exact same amount as received however the exchange rate is applied from riyal to rupee by the money transfer agency.

2. Recently my employer has proposed to pay me through there local partner in Pakistan i.e I am going to continue providing services to my employer in Saudi Arabia but my payment is made via cheque in Pakistan (through company's local partner in pakistan) that is then deposited in my Pakistani bank account.

In both cases I have the payslips from my saudi employer and my Pakistani bank statement showing the money transfer in case 1 and cheque cleared in case 2.

My question is, is there going to be any problem in proving my earnings in the above two situations? In particular in case 2 would I be required to show tax on my salary payment made in Pakistan? (Pakistan is not tax free country)

Appreciate your valuable responses in advance.

Regards,

[geriatrix]

1.Problem, if you "cash" the employer's cheque and then transfer the "cash" to another country. Not a problem, if you "deposit" the cheque before taking the cash out or transfer money to another country. In either case, UKBA will not accept bank statements of a Pakistani bank - where money has been transferred (by you) - as evidence of earnings.
2. A letter from employer certifying and explaining payment of salary through a subsidiary / partner may help.

It would have been much easier if you were paid through direct deposit to your bank account, rather than by cheques - specially so when intermediaries get involved (raises doubts).

[WRS]

Many Thanks Sushdmehta for your valuable advice.

Regards,