Simultaneous UK and Overseas Earnings for Tier 1 Extension

[d1o]

Many people have asked about a combination of UK and overseas earnings for Tier 1 visa extension but my query is slightly different.

If while in the UK working full time for a UK employer for the last 12 consecutive months, you also had a different overseas employer who you did consultancy work for and who also paid you monthly salaries into an overseas account (in the same country as the overseas employer), would you be able to use a combination of these two SIMULTANEOUS earnings to claim points? (without uplift ratio of course)

Would you have had to pay UK tax on the earnings from overseas for these to be acceptable since you were resident in the UK the whole time even if the overseas employer has always deducted the applicable tax in the overseas country at source?

Would a letter from the overseas employer listing each individual payment with dates and original bank statements from the overseas bank suffice as supporting documentation for that source of earning?

Any takes?

[Lucapooka]

Are you talking about actual employment or self-employment? Is there tax deducted from this income at source, as is usual for employment?

[d1o]

Are you talking about actual employment or self-employment? Is there tax deducted from this income at source, as is usual for employment?

Actual Employment NOT Self employment. Yes, tax is deducted from this income at source in the usual way.

[d1o]

Any thoughts anyone?

[gaurav76.5]

nope..you can't claim overseas earning for your TIER1 extension because you are not paying tax to HMRC on that..if you are paying tax to HMRC on overseas earning you can claim points for that...

[Shadry]

@d10 very good thread you posted. I myself have asked the same question several times here with no answer.

Looks like the guys here has issues with overseas earning. Fingers crossed maybe a good samaritan would come with advise one day

[d1o]

nope..you can't claim overseas earning for your TIER1 extension because you are not paying tax to HMRC on that..if you are paying tax to HMRC on overseas earning you can claim points for that...

Uk residents who aren't domiciled or ordinarily resident in the UK need not pay UK tax on their overseas earnings on an arising basis (ab) but rather on a remittance basis (rb) IF and WHEN such overseas earnings are remitted to the UK. With all due respect, you are a member of standing; please consult hmrc for confirmation. Do you know of any ACTUAL cases where tier 1 extension was refused solely because the applicant did not pay UK tax on their simultaneous overseas earnings?

[gaurav76.5]

yes i know few of them and I am aware of what I said..UKBA functions differently then in eyes of HMRC....also thses applications gets rejected most of the time because the applicant tries to use uplift ratio on Overseas earning for Tier 1 extension..UKBA doesn't allow that .However if you have paid tax on those earning in UK then you can use it for your extensions....

[Shadry]

@ gaurav76.5
D10 never refer to uplift. He said simultaneous earning and tax was paid overseas for the second employment.

am not sure your info is right please.

[d1o]

yes i know few of them and I am aware of what I said..UKBA functions differently then in eyes of HMRC....also thses applications gets rejected most of the time because the applicant tries to use uplift ratio on Overseas earning for Tier 1 extension..UKBA doesn't allow that .However if you have paid tax on those earning in UK then you can use it for your extensions....

UKBA implements a tax regime different from that of the HMRC? interesting!

Thanks for the point on refusals due to uplift ratios...but again I did mention in the OP that it was going to be WITHOUT uplift ratio on the overseas earnings.

Sorry to labour the point but again have you seen any ACTUAL cases that were refused SOLELY because UK tax was not paid on the overseas earnings gained while the applicant was living in the UK?

[d1o]

@d10 very good thread you posted. I myself have asked the same question several times here with no answer.

Looks like the guys here has issues with overseas earning. Fingers crossed maybe a good samaritan would come with advise one day

yeah...fingers crossed

[d1o]

Luca, shush, aruni...anyone. Any takes on this?

[thebionicredneck2003]

Hi d10,

Just my own two cents. I am not entirely sure of the payment of the tax in the UK for work done and already taxed overseas as I am no expert on this. For documentary evidence, I believe if you show the same type of evidence used for a UK job, such as payslips, bank statements and so on, this should be acceptable.

May also be worthwhile to send an email to the Home Office and get their thoughts on your query.

In addition, you should also be aware that there is an inherent risk trying to prove this and it may just be much simpler to get another job in the UK to bridge any earnings shortfall.

Kind Regards

[Shadry]

[d1o]

Hi d10,

Just my own two cents. I am not entirely sure of the payment of the tax in the UK for work done and already taxed overseas as I am no expert on this. For documentary evidence, I believe if you show the same type of evidence used for a UK job, such as payslips, bank statements and so on, this should be acceptable.

May also be worthwhile to send an email to the Home Office and get their thoughts on your query.

In addition, you should also be aware that there is an inherent risk trying to prove this and it may just be much simpler to get another job in the UK to bridge any earnings shortfall.

Kind Regards

Cheers for your input mate. Have shot them an email and awaiting thier response.

[silent_warrior]

Many people have asked about a combination of UK and overseas earnings for Tier 1 visa extension but my query is slightly different.

If while in the UK working full time for a UK employer for the last 12 consecutive months, you also had a different oversea employer who you did consultancy work for and who also paid you monthly salaries into an oversea account (in the same country as the oversea employer), would you be able to use a combination of these two SIMULTANEOUS earnings to claim points? (without uplift ratio of course)

Would you have had to pay UK tax on the earnings from overseas for these to be acceptable since you were resident in the UK the whole time even if the overseas employer has always deducted the applicable tax in the oversea country at source?

Would a letter from the oversea employer listing each individual payment with dates and original bank statements from the oversea bank suffice as supporting documentation for that source of earning?

Any takes?

You can claim the overseas earnings + UK earnings simultneously. For UK earnings you need to pay tax within UK and for overseas earnings if they are taxed by the 'Official Overseas Tax Authority' then that should be fine.
It would be useful to read the Tier 1 Policy Guidance notes. Look at evidence for Previous Earnings, and in there it mentions what is required for overseas earnings

[d1o]

You can claim the overseas earnings + UK earnings simultneously. For UK earnings you need to pay tax within UK and for overseas earnings if they are taxed by the 'Official Overseas Tax Authority' then that should be fine.
It would be useful to read the Tier 1 Policy Guidance notes. Look at evidence for Previous Earnings, and in there it mentions what is required for overseas earnings

Thanks mate. Yes, tax on the overseas earnings are being deducted at source (PAYE) by employer just as tax for the UK earnings are also being deducted at source by UK employer.

[Shadry]

Good you have contacted UKBA, fingers crossed. Cheers bro

[Shadry]

@d10 any update from UKBA pleazzzz ?

[d1o]

@d10 any update from UKBA pleazzzz ?

Still no response from them mate! Not even an acknowledgment of receipt. But no failed delivery email either...so the email was delivered alright...phew!!!

I'm fairly certain it should be fine (with adequate documentation for the overseas earnings -2 proofs from 2 different sources) but hey......its a £1500 application fee...haha

[nikunjpatel1]

@d10 any update from UKBA pleazzzz ?

Still no response from them mate! Not even an acknowledgment of receipt. But no failed delivery email either...so the email was delivered alright...phew!!!

I'm fairly certain it should be fine (with adequate documentation for the overseas earnings -2 proofs from 2 different sources) but hey......its a £1500 application fee...haha

Hi,

i have exact response for this forum. Before i came in the UK i was working in India based BACK OFFICE of UK based company. BACK OFFICE was registered company in India with different name (out sourcing work for other UK based company as well). By looking over to my expertise in work Head office (UK based company) offered me a job and in turn i applied for HSMP Visa. I came in the UK on HSMP in June 2008. alongside working with UK based head office i was also offered by India based company to work(Marketing Post) in the UK for which we were agreed to get paid salary in Indian rupees.

At the time of extension i combined Indian and Uk salary and indian salary i had converted to GBP as per the rate of OANDA. i didn't pay tax in the UK on Indian salary but paid in India (Of Course). MY VISA GOT EXTENDED SUCCESSFULLY

As per HMRC tax should be paid for overseas income (Applicable to HSMP applicants) regardless you bring it in the UK or not but however, if tax not paid in the UK..UKBA may not cancel application but as a fact they should remind you to pay it to HMRC with applicable penalty for late tax payment.


i am still working for both the companies and going to do the same practice for my ILR which is due to apply in March 2013.

i hope this answer your queries.

[d1o]

i hope this answer your queries.

Never had a better answer! Thanks a million mate!

[ashazhang]

Many people have asked about a combination of UK and overseas earnings for Tier 1 visa extension but my query is slightly different.

If while in the UK working full time for a UK employer for the last 12 consecutive months, you also had a different oversea employer who you did consultancy work for and who also paid you monthly salaries into an oversea account (in the same country as the oversea employer), would you be able to use a combination of these two SIMULTANEOUS earnings to claim points? (without uplift ratio of course)

Would you have had to pay UK tax on the earnings from overseas for these to be acceptable since you were resident in the UK the whole time even if the overseas employer has always deducted the applicable tax in the oversea country at source?

Would a letter from the oversea employer listing each individual payment with dates and original bank statements from the oversea bank suffice as supporting documentation for that source of earning?

Any takes?

You can claim the overseas earnings + UK earnings simultneously. For UK earnings you need to pay tax within UK and for overseas earnings if they are taxed by the 'Official Overseas Tax Authority' then that should be fine.
It would be useful to read the Tier 1 Policy Guidance notes. Look at evidence for Previous Earnings, and in there it mentions what is required for overseas earnings

depends on case worker, i read some books about tax, normally if you stay in a country less than 90(maybe183) days. not necessary pay tax to that country where they pay your wage, you can pay tax by yourself where you live more than 183days. of course not many people do that, they want save money. so if some case worker know that, up to them to give you point or not, some case worker do not know about this, so good luck, for myself, i would like safe way, even oversea income, i still paid tax in the UK, then by law they should give you point

[Mark 1100]

I Used overseas income in uk in my first tier1 general application. This was combined with the UK earnings on full time.
I had a smooth extension with the PEO in glasgow.

Few years down the road i applied for PEO in glasgow for indefinate using again overseas income and UK earnings and glasgow PEO couldnt make a decision as they said i needed to go to another PEO with seniour case workers to make a decision on that basing on the fact that my letter was not properly addresed.
I here they wanted my employer Overseas to include gross earnings on letter.
I phoned them and got another letter.
I was later given settlement.
Its not easy but you need to read the guidance notes so clearly.

[d1o]

I Used overseas income in uk in my first tier1 general application. This was combined with the UK earnings on full time.
I had a smooth extension with the PEO in glasgow.

Few years down the road i applied for PEO in glasgow for indefinate using again overseas income and UK earnings and glasgow PEO couldnt make a decision as they said i needed to go to another PEO with seniour case workers to make a decision on that basing on the fact that my letter was not properly addresed.
I here they wanted my employer Overseas to include gross earnings on letter.
I phoned them and got another letter.
I was later given settlement.
Its not easy but you need to read the guidance notes so clearly.

Thanks a lot for your very relevant input, mate. Did you pay UK tax on the overseas earnings?

Thanks again.