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Indian Employer paying in INR but employment in UK?

Archived UK Tier 1 (General) points system forum. This route no longer exists.

Moderators: Casa, Amber, archigabe, batleykhan, ca.funke, ChetanOjha, EUsmileWEallsmile, JAJ, John, Obie, push, geriatrix, vinny, CR001, zimba, meself2, Administrator

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lovetier1
Newbie
Posts: 35
Joined: Fri Sep 05, 2008 10:27 am

Indian Employer paying in INR but employment in UK?

Post by lovetier1 » Tue Apr 21, 2009 2:53 pm

Dear Members ,

I have Tier1 visa and my employer wants to transfer my payroll (just payroll) to India and my salary will be paid in INR. My employer will also pay allowances in GBP to stay here, but this will be paid from employer's office in India. The allowances paid in GBP will not be under UK payroll rather it will be paid from India. Precisely , I will be an employee of Indian office working here in UK. Does this sounds ok? Does this model have any issues for future ?
Please suggest

ChetanOjha
Moderator
Posts: 2771
Joined: Thu Dec 28, 2006 12:49 am
Location: London
United Kingdom

Re: Indian Employer paying in INR but employment in UK?

Post by ChetanOjha » Tue Apr 21, 2009 3:10 pm

Many India based company do this where they pay sal in india and allowances in UK. As far as your company is paying some tax for your in UK, you should be fine.

But the problem for you is, you should be getting payment in UK-bank and payslip in UK in order to maintain your Tier 1 status (for extension).

lovetier1 wrote:Dear Members ,

I have Tier1 visa and my employer wants to transfer my payroll (just payroll) to India and my salary will be paid in INR. My employer will also pay allowances in GBP to stay here, but this will be paid from employer's office in India. The allowances paid in GBP will not be under UK payroll rather it will be paid from India. Precisely , I will be an employee of Indian office working here in UK. Does this sounds ok? Does this model have any issues for future ?
Please suggest

crowbar6
Member of Standing
Posts: 399
Joined: Tue Dec 11, 2007 5:33 pm
Location: London

Post by crowbar6 » Tue Apr 21, 2009 3:28 pm

Though it sounds alright, you will have to do a lot of paperwork in case the INR salary is credited to a non-UK bank account, i.e., get bank statements from the non-UK Bank, payslips from India office of your company.

I was in this situation a few years ago. Avoid it if you have a choice as it causes increased paperwork and co-ordination.

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