Owning a business in a different country while on Tier 4?

[tier2man]

Hi there,

I have a bit of a complicated question which I was wondering if anyone can give their 2 cents on as I couldn't find the answer anywhere.

I'm in UK on a tier 4 visa. I know that doing business either by owning a company or sole trading is not allowed while you are on tier 4 visa.

I am looking at doing online based source of income which includes money earned from website ads etc. If my payment receiving account was based in my home country, that way, the business I own and any money earned through it will be subject to tax in my home country, would it still be breach of my immigration condition?

[Wanderer]

Hi there,

I have a bit of a complicated question which I was wondering if anyone can give their 2 cents on as I couldn't find the answer anywhere.

I'm in UK on a tier 4 visa. I know that doing business either by owning a company or sole trading is not allowed while you are on tier 4 visa.

I am looking at doing online based source of income which includes money earned from website ads etc. If my payment receiving account was based in my home country, that way, the business I own and any money earned through it will be subject to tax in my home country, would it still be breach of my immigration condition?

Yes, since tax is due where the work is done and in this scenario you'd need to declare the income to HMRC.

[tier2man]

Hi, thank you for your reply wanderer, but the work is not necessarily being done in uK. Online work, website ad revenue - these are obviously done globally and not just in UK. I am physically present in UK, however, the website is designed through outsourcing from other countries, the revenue is made by pay per click from visitors from around the world and the payment is made to the bank account in my home country. The sole trader status or the company owner I will be in my home country as well.

Just because I am physically present in UK during this time, I have to pay tax to HMRC?

I was primarily worried about breaching immigration condition where it says you are not allowed to own a business. But it doesn't pecify whether or not it has to be a UK business or not...

Please clarify

[sah10406]

I was primarily worried about breaching immigration condition where it says you are not allowed to own a business. But it doesn't pecify whether or not it has to be a UK business or not...

Please clarify

There is no clarification. As you say, the rules don't go into any further detail, and neither does any related guidance. If you are concerned, I would therefore advise not operating your business while you are in the UK.

[Wanderer]

Well take my situation as an example, I'm a UK citizen and live and work in Denmark. I pay Danish tax as I only limited myself to <91 days a year in UK so I don't pay UK tax. (There are other tests too, it's not so simple as that alone)

However, if I spend 92 days a year or more in UK, I will be tax resident in UK too and pay UK tax if higher than Danish tax and not if lower. In my case Danish tax is lower so I would have to pay the difference to HMRC as if I was taxed in UK despite the fact I do no actual work in UK.

In your case you must be spending well over 91 days in UK therefore you are liable for UK tax on any work you perform where ever it is based.

Believe me I've researched this and paid a lot for a tax speicalist to guide me and make sure I don't fall foul of the law.

[sah10406]

Believe me I've researched this and paid a lot for a tax speicalist to guide me and make sure I don't fall foul of the law.

This is not a query about tax liability, but about work conditions. OP is subject to a work restriction in the UK, which includes a prohibition on running a business.