Tier 1 Extension | Part Time Salary Tax Question

[manisankarmani]

Hi,

I am applying for my extension soon. I had a query related to tax implications of earning overseas. I know there are several threads where this was discussed, but my case is slightly different.

I did part time job from UK for a company in India. They sent me a letter stating me as a part time employee in their company. In the letter they only given me the amount they paid me in total. They didn't highlight any tax deductions etc though I am sure they did these deductions. Now its very difficult for me to get back to them asking about the tax details as the contract is over and I am not sure whether they will entertain my request.

In the letter they stated clearly - I worked their as a parttime employee for the xxxxxx months ( MON1-2012 to MON2-2012 ) in a YYY role. Here is the Gross salary I received and deduction due to transfer of money to UK. The net. amount after deduction is matching with my bank statement.

Do you foresee any issue if the Tax portion is not mentioned in the letter - In short that was my question.

[adityak77]

Hi,

I am applying for my extension soon. I had a query related to tax implications of earning overseas. I know there are several threads where this was discussed, but my case is slightly different.

I did part time job from UK for a company in India. They sent me a letter stating me as a part time employee in their company. In the letter they only given me the amount they paid me in total. They didn't highlight any tax deductions etc though I am sure they did these deductions. Now its very difficult for me to get back to them asking about the tax details as the contract is over and I am not sure whether they will entertain my request.

In the letter they stated clearly - I worked their as a parttime employee for the xxxxxx months ( MON1-2012 to MON2-2012 ) in a YYY role. Here is the Gross salary I received and deduction due to transfer of money to UK. The net. amount after deduction is matching with my bank statement.

Do you foresee any issue if the Tax portion is not mentioned in the letter - In short that was my question.

Does the letter mention the Net salary after tax deductions.?

[manisankarmani]

Hi,

I am applying for my extension soon. I had a query related to tax implications of earning overseas. I know there are several threads where this was discussed, but my case is slightly different.

I did part time job from UK for a company in India. They sent me a letter stating me as a part time employee in their company. In the letter they only given me the amount they paid me in total. They didn't highlight any tax deductions etc though I am sure they did these deductions. Now its very difficult for me to get back to them asking about the tax details as the contract is over and I am not sure whether they will entertain my request.

In the letter they stated clearly - I worked their as a parttime employee for the xxxxxx months ( MON1-2012 to MON2-2012 ) in a YYY role. Here is the Gross salary I received and deduction due to transfer of money to UK. The net. amount after deduction is matching with my bank statement.

Do you foresee any issue if the Tax portion is not mentioned in the letter - In short that was my question.

Does the letter mention the Net salary after tax deductions.?
Pay slips would be required as it will indicate that they have deducted TAX, NI and also employer NI

Also what tax code have they put you under? It must be BR

Many Thanks for your response Sir.

Period of Employment (dd/mm/yyyy) Date of Pay (dd/mm/yyyy) Gross pay (GBP) Bank Transaction Charge (GBP) Net Pay (GBP)
01/02/2011 – 30/04/2011 28/04/2011 6000 25 5975
01/11/2011 – 12/11/2011 01/02/2012 450 25 425

This is the format they chose to send the details in. They are Indian Company and they are not having any presence in UK so no TAX, NI and employer NI was mentioned. Though they mentioned its their Gross Pay, but that is payable to me after tax and before transaction related deduction (25GBP in this case).

Moreover, I am in a full time employment in UK and having tax code 747L. I also informed HMRC that I received 6.5K as an extra salary and want to pay my fair share of the tax. I was told, I will be sent a letter asking to pay the tax amount for this income.

[adityak77]

Hi,

I am applying for my extension soon. I had a query related to tax implications of earning overseas. I know there are several threads where this was discussed, but my case is slightly different.

I did part time job from UK for a company in India. They sent me a letter stating me as a part time employee in their company. In the letter they only given me the amount they paid me in total. They didn't highlight any tax deductions etc though I am sure they did these deductions. Now its very difficult for me to get back to them asking about the tax details as the contract is over and I am not sure whether they will entertain my request.

In the letter they stated clearly - I worked their as a parttime employee for the xxxxxx months ( MON1-2012 to MON2-2012 ) in a YYY role. Here is the Gross salary I received and deduction due to transfer of money to UK. The net. amount after deduction is matching with my bank statement.

Do you foresee any issue if the Tax portion is not mentioned in the letter - In short that was my question.

Does the letter mention the Net salary after tax deductions.?
Pay slips would be required as it will indicate that they have deducted TAX, NI and also employer NI

Also what tax code have they put you under? It must be BR

Many Thanks for your response Sir.

Period of Employment (dd/mm/yyyy) Date of Pay (dd/mm/yyyy) Gross pay (GBP) Bank Transaction Charge (GBP) Net Pay (GBP)
01/02/2011 – 30/04/2011 28/04/2011 6000 25 5975
01/11/2011 – 12/11/2011 01/02/2012 450 25 425

This is the format they chose to send the details in. They are Indian Company and they are not having any presence in UK so no TAX, NI and employer NI was mentioned. Though they mentioned its their Gross Pay, but that is payable to me after tax and before transaction related deduction (25GBP in this case).

Moreover, I am in a full time employment in UK and having tax code 747L. I also informed HMRC that I received 6.5K as an extra salary and want to pay my fair share of the tax. I was told, I will be sent a letter asking to pay the tax amount for this income.

I am not sure of the above as far as I know you dont have to inform HMRC if those earnings were made in the UK part time, But they are earned in India. How have the company in India cut your Tax, From the above the Net Pay shown is just GROSS - Bank charge. That is incorrect.

Ask a certified accountant for more advise. All UKBA home office will see if the letter/pay slips match the Net pay in the bank statement for that period and check for the TAX bracket if you have a second source of income.

[manisankarmani]

Hi,

I am applying for my extension soon. I had a query related to tax implications of earning overseas. I know there are several threads where this was discussed, but my case is slightly different.

I did part time job from UK for a company in India. They sent me a letter stating me as a part time employee in their company. In the letter they only given me the amount they paid me in total. They didn't highlight any tax deductions etc though I am sure they did these deductions. Now its very difficult for me to get back to them asking about the tax details as the contract is over and I am not sure whether they will entertain my request.

In the letter they stated clearly - I worked their as a parttime employee for the xxxxxx months ( MON1-2012 to MON2-2012 ) in a YYY role. Here is the Gross salary I received and deduction due to transfer of money to UK. The net. amount after deduction is matching with my bank statement.

Do you foresee any issue if the Tax portion is not mentioned in the letter - In short that was my question.

Does the letter mention the Net salary after tax deductions.?
Pay slips would be required as it will indicate that they have deducted TAX, NI and also employer NI

Also what tax code have they put you under? It must be BR

Many Thanks for your response Sir.

Period of Employment (dd/mm/yyyy) Date of Pay (dd/mm/yyyy) Gross pay (GBP) Bank Transaction Charge (GBP) Net Pay (GBP)
01/02/2011 – 30/04/2011 28/04/2011 6000 25 5975
01/11/2011 – 12/11/2011 01/02/2012 450 25 425

This is the format they chose to send the details in. They are Indian Company and they are not having any presence in UK so no TAX, NI and employer NI was mentioned. Though they mentioned its their Gross Pay, but that is payable to me after tax and before transaction related deduction (25GBP in this case).

Moreover, I am in a full time employment in UK and having tax code 747L. I also informed HMRC that I received 6.5K as an extra salary and want to pay my fair share of the tax. I was told, I will be sent a letter asking to pay the tax amount for this income.

I am not sure of the above as far as I know you dont have to inform HMRC if those earnings were made in the UK part time, But they are earned in India. How have the company in India cut your Tax, From the above the Net Pay shown is just GROSS - Bank charge. That is incorrect.

Ask a certified accountant for more advise. All UKBA home office will see if the letter/pay slips match the Net pay in the bank statement for that period and check for the TAX bracket if you have a second source of income.

Thanks Sir,

When you say they check the Tax Bracket, how that is going to change. As I already informed the HMRC, do you see that HO will see that I already contacted them to figure out my tax issues. How can we update the Tax Bracket in the middle of the financial year. Is it not when you submit your return with the details of your extra earnings and the following year the Tax Bracket changes?

You are right about the above assumption that they simply provided me the GROSS as my Net Salary to make it simpler as they were also not very sure about the tax implications in India and they are not willing to disclose that to me.

[adityak77]

Ok discuss this with an accountant in India too as a transaction of 6.5k - charges shown as net would be an issue .

The accountant in UK would be the best person to advise as there is no formal Gross/ Net Pay mentioned in the letter and thats the evidence the home office will see/ verify against

Im sorry I cannot advise further, as the company has paid you directly and are not disclosing the tax deductions done after paying you. Its your right to know the tax deduction at source.

[manisankarmani]

Ok discuss this with an accountant in India too as a transaction of 6.5k - charges shown as net would be an issue .

The accountant in UK would be the best person to advise as there is no formal Gross/ Net Pay mentioned in the letter and thats the evidence the home office will see/ verify against

Im sorry I cannot advise further, as the company has paid you directly and are not disclosing the tax deductions done after paying you. Its your right to know the tax deduction at source.

Thank You Sir for you time. I just had a word with the HMRC and they sent me a foreign income form which I can fillup and send to get my 6.5K's taxed in UK this year. Regarding the Net / Gross amount, the letter states the Gross and Net which is written clearly and the amount mentioned as net is showing is matching the amount received in Bank.

If they ask for additional document to clarify the Tax part, I can supply the HMRC tax declaration stuff to them.

Thanks once again for your help.

[adityak77]

Ok discuss this with an accountant in India too as a transaction of 6.5k - charges shown as net would be an issue .

The accountant in UK would be the best person to advise as there is no formal Gross/ Net Pay mentioned in the letter and thats the evidence the home office will see/ verify against

Im sorry I cannot advise further, as the company has paid you directly and are not disclosing the tax deductions done after paying you. Its your right to know the tax deduction at source.

Thank You Sir for you time. I just had a word with the HMRC and they sent me a foreign income form which I can fillup and send to get my 6.5K's taxed in UK this year. Regarding the Net / Gross amount, the letter states the Gross and Net which is written clearly and the amount mentioned as net is showing is matching the amount received in Bank.

If they ask for additional document to clarify the Tax part, I can supply the HMRC tax declaration stuff to them.

Thanks once again for your help.

Fantastic! If that helps your query and solve the problem. Also for the benefit of the forum and other members with a similar case, can you share the form name and no,
OR the ref link to the HMRC website

Thanks,

[manisankarmani]

Ok discuss this with an accountant in India too as a transaction of 6.5k - charges shown as net would be an issue .

The accountant in UK would be the best person to advise as there is no formal Gross/ Net Pay mentioned in the letter and thats the evidence the home office will see/ verify against

Im sorry I cannot advise further, as the company has paid you directly and are not disclosing the tax deductions done after paying you. Its your right to know the tax deduction at source.

Thank You Sir for you time. I just had a word with the HMRC and they sent me a foreign income form which I can fillup and send to get my 6.5K's taxed in UK this year. Regarding the Net / Gross amount, the letter states the Gross and Net which is written clearly and the amount mentioned as net is showing is matching the amount received in Bank.

If they ask for additional document to clarify the Tax part, I can supply the HMRC tax declaration stuff to them.

Thanks once again for your help.

Fantastic! If that helps your query and solve the problem. Also for the benefit of the forum and other members with a similar case, can you share the form name and no,
OR the ref link to the HMRC website

Thanks,

Sure Sir,

I just called them to their number: +44 161 931 9070
As I told you I declared that I received 6.5K early april 2011, I contacted them and they sent me a letter which states that I need to fill up the return and send it back.

In that letter they mentioned, I need to fillup the Earning for Foreign Contries page. The best thing is , If I submit the PAYE return online, I can take the print out of the amount I earned and declared as foreign income. I also be able to get a formal mail from HMRC stating my tax implication for the extra earnings. This will clearly clarify my tax implication and I am allowed to show that as a proof that I paid my fair share of tax.

I will keep you posted with my experience. Finger crossed.

[manisankarmani]

Ok discuss this with an accountant in India too as a transaction of 6.5k - charges shown as net would be an issue .

The accountant in UK would be the best person to advise as there is no formal Gross/ Net Pay mentioned in the letter and thats the evidence the home office will see/ verify against

Im sorry I cannot advise further, as the company has paid you directly and are not disclosing the tax deductions done after paying you. Its your right to know the tax deduction at source.

Thank You Sir for you time. I just had a word with the HMRC and they sent me a foreign income form which I can fillup and send to get my 6.5K's taxed in UK this year. Regarding the Net / Gross amount, the letter states the Gross and Net which is written clearly and the amount mentioned as net is showing is matching the amount received in Bank.

If they ask for additional document to clarify the Tax part, I can supply the HMRC tax declaration stuff to them.

Thanks once again for your help.

Fantastic! If that helps your query and solve the problem. Also for the benefit of the forum and other members with a similar case, can you share the form name and no,
OR the ref link to the HMRC website

Thanks,

Sure Sir,

I just called them to their number: +44 161 931 9070
As I told you I declared that I received 6.5K early april 2011, I contacted them and they sent me a letter which states that I need to fill up the return and send it back.

In that letter they mentioned, I need to fillup the Earning for Foreign Contries page. The best thing is , If I submit the PAYE return online, I can take the print out of the amount I earned and declared as foreign income. I also be able to get a formal mail from HMRC stating my tax implication for the extra earnings. This will clearly clarify my tax implication and I am allowed to show that as a proof that I paid my fair share of tax.

I will keep you posted with my experience. Finger crossed.

Sir,

Today I received email from UKBA stating the following:

Thank you. We can confirm that your case has been decided and that you should receive your decision letter, BRP and original documentation soon.

Appointment Exceptions

What are chances that it is a success?

[adityak77]

I cannot comment on that. But to me it may be a success on a higher side