Previous Earnings from a Business in India while in UK

[bygodsgrace]

Hi All,

I am planning to switch from Tier 2 to Tier 1 (G) in Feb. To meet the previous earnings required band of 40,000+ GBP I am planning to show income from my salaried employment in UK and income from a Business (2 shareholders) which is based in India. My questions are

1. Can I show the earnings from a Business based in India while I am living in UK?

2. What should be the two sources of evidences which should be presented to the UK BA? The two possible documents/evidence which I can see as possible are:
a. Letter from Accountant showing the proportion of my net profit from the business (as I am not taking a dividend/salary from this business).
b. Business bank statement (in the name of the company).

3. For my other part of the earnings (employment in UK), I am getting an Indian Salary and a UK allowance. The Indian Salary payslip contains gross, net and other components. But the UK allowance sheet doesn't contain any other component except the net payment made to my account. Can I use this allowance sheet as a proof from my employer in this case?

I look forward to hearing from you soon.

Thanks in advance,

[bygodsgrace]

Seniors, please reply for my queries

Thanks

[rizwan567]

Yes, you can claim earnings from your business in India.

I am not 100% sure about documents but i think you should submitt, accountant letter confirming your share holding in business and your share of profits, company business bank statements confirming claimed turnover of business and management accounts of company. And tax returns if available.

[bygodsgrace]

Hi Rizwan,

Thanks a lot for your reply.

As you have mentioned earlier, below are the evidences which I am planning to show.

1. Accountant letter confirming my share holding in business and my share of profits
2. Company business bank statements confirming claimed turnover of business and
3. Management accounts of company

Could you please elaborate on the third point above?

Thanks in advance,

[rizwan567]

Statuary accounts drafted in standard format containing profit and loss account and balance sheets.

See Tier 1 General guidance for full detail!

[Ruchica]

Hi bygodsgrace and rizwan. Can the Uplift ratio of 5.3 for india be applied for selfemployed income earned in india while iam in the UK. Iam also having a salaried income thats earned in the UK. Please help me with your answer. Many thanks in advance to you both.

[wf]

You cannot use the uplift ratio unless you were physically in the country when the money was earned.

[Ruchica]

You cannot use the uplift ratio unless you were physically in the country when the money was earned.

Hi WF. Thank you for your reply. I was actually going through the policy guidelines for tier 1 general and its not mentioned anywhere for selfemployed people that they should be physically present in the coutry to make use of uplift ratio. Paragraph 129 of the tier 1 guidelines says:

129 - The country in which the applicant has physically undertaken the work determines the income band that the earnings will be assessed against, and not: his/her nationality; the currency that the payment is made in; or the country in which payment is made. No uplift ratio is applied to the earnings made if the applicant has been in the UK while doing the work for an overseas company, and no applicants will be entitled to claim uplift rations on overseas earnings for extension applications.

Here the rules says that no uplift ratio would be applied to those doing work for an overseas company and if he/she is in the UK. In my case I am not doing the work for an overseas company in the UK and my income in india is a self-employed income. Furthermore, my application would be an initial application and not an extension application.

Your feedback/opinion on what I have just mentioned is very much appreciated. Thanks mate.

[mulderpf]

You posted your own answer. Read the highlighted part again - as wf said, you can only the uplift ratio of the country where you were when the earned the money (regardless of being self-employed or employed).

You cannot use the uplift ratio unless you were physically in the country when the money was earned.

Hi WF. Thank you for your reply. I was actually going through the policy guidelines for tier 1 general and its not mentioned anywhere for selfemployed people that they should be physically present in the coutry to make use of uplift ratio. Paragraph 129 of the tier 1 guidelines says:

129 - The country in which the applicant has physically undertaken the work determines the income band that the earnings will be assessed against, and not: his/her nationality; the currency that the payment is made in; or the country in which payment is made. No uplift ratio is applied to the earnings made if the applicant has been in the UK while doing the work for an overseas company, and no applicants will be entitled to claim uplift rations on overseas earnings for extension applications.

Here the rules says that no uplift ratio would be applied to those doing work for an overseas company and if he/she is in the UK. In my case I am not doing the work for an overseas company in the UK and my income in india is a self-employed income. Furthermore, my application would be an initial application and not an extension application.

Your feedback/opinion on what I have just mentioned is very much appreciated. Thanks mate.