Tier1 extension & Non-payment of National Insurance (N.I

[girish]

Hello Friends

i was deputed to UK by an Indian IT company in a WP Visa on Jan 2007 and after a year i applied for HSMP.
i got my HSMP visa stamped on 2008 jan and my visa is getting expired on Jan 2010. i started paying my NI after 1 year of complition in UK
i.e Jan 2008 - July 2008

Last year i had been to india from July - Oct(4 Months) , as my projects got closed and then came back again in month of Nov , after which i am still here working with the same company IT Company.

My query is:
My company is not paying NI, since Nov as they claim that they have a tie up with UK home office, that an employee need not pay NI for the first visit in his UK. My company says anything with a gap of 3/3+ months is treated as a new visit.

Does not paying NI affect my Tier1 extension which i am about to apply?
Your advice & suggestion are most welcome.

Thanks in advance
Girish

[push]

Foreign employer sending employee to UK

NICs are not payable for the first 52 weeks starting from the first Sunday after the employee arrives in the UK for an employee:

not normally living or working in the UK;
who has been sent to work here temporarily by an overseas employer; and
the employer has a place of business outside the UK even if the employer also has a place of business in the UK; and
the employee continues to work for the overseas employer.

[girish]

Thanks for the reply.

But will this affect my HSMP/Tier1 extension, since i am not paying NI for first 52 weeks.

[push]

Thanks for the reply.

But will this affect my HSMP/Tier1 extension, since i am not paying NI for first 52 weeks.

No it shouldn't.Any reason you believe it would?

[girish]

The reason is because, in this Case doesnt it mean that i am not supporting the UK economy as i am not paying NI.

Can this affect me when i am apply for ILR/PR after 5 years of my stay in UK?

[pkumar]

I think you should be fine with respect to NI (As long as you have P60). i have heard many people carry 5 years of P60 and it seems that make's the case very straight forward.

But you need to see if you qualify for ILR given that you were out of country for more than 3 months at a single stretch.

[crowbar6]

Tier 1 extension is not a problem. Your company is doing the right thing legally, as all other Indian IT companies in UK do, so don't worry on that front.

As long as you have told your employer about your NI number (which you obtained in Jan 2008) and they have informed HMRC, it is good. The NI number should be displayed on your annual P60s. Submit the original P60s and just mention the NI number in the application form.

Don't worry about the contributions / tax to UK economy as that is governed by the tax treaties between UK and India under which Indian IT companies do an intra-company transfer for their Employees to bring them to UK.

[push]

The reason is because, in this Case doesnt it mean that i am not supporting the UK economy as i am not paying NI.

Can this affect me when i am apply for ILR/PR after 5 years of my stay in UK?

Paying NI or Taxes is not the only and in no way the most significant way of contributing to UK's economy. You support UK economy by keeping it in motion and by facilitating the incremental output from what you do. Dont worry at all.

[Sushil-ACCA]

yes

tax dept and home office r different but u need to be on pay roll of uk company or should have p60 or tax assessment of last 5 years

regards