NI contribution - Tier 1 - Deputation

[arnabkun]

I am on a tier 1 visa which is due for renewal on 01/01/2013. I took up UK assignment with my existing employer in India. They pay me gross salary in UK which is taxed as per UK laws.

I observed that there is neither any NI deduction from my salary nor my employer contributes to that. When spoke to them they said since I am on deputation from India so for first 52 weeks it is ok not to deduct. I am not sure whether that is true irrespective of visa category but am concerned whether it will be an issue during the visa renewal?

it will be great if some one can clarify who had to go thru similar process.

[rockwell31]

I think it will not create any issue if you can get your P60/P45 with NI number as empty (means, tax payed through Group NI - normally followed by Indian Employer in UK). This can be considered as additional supporting document along with your other valid requirements.

RW

[hussainkothari]

they said since I am on deputation from India so for first 52 weeks it is ok not to deduct

This is true.

but am concerned whether it will be an issue during the visa renewal

Should not be an issue since it is all legal. BTW it is your employers duty to pay NI and not yours. So if anything you should not worry.

-H

[arnabkun]

Thanks for your reply. There is no group NI. NI is deducted from the salary after 52 weeks by the employer.

I am very worried. Do you think I should consult a Solicitor?

[hussainkothari]

There is no group NI

Yes. Thats true.

Do you think I should consult a Solicitor

Well it really depends on what you want to do. No one can take gurantees of your case. All I can say is when I applied for my Tier1 (from WorkPermit in 2008) I submitted my payslips which had no NI deductions.

I don't understand your worry. Your employer is exempted from paying and deducting your NI. This is a benefit provided by HMRC to expats. It is your employers (complete) responsibility to pay the NI.

[rockwell31]

Hi arnabkun,
My case is similar to hussainkothari, I entered by Apr. 2009 with T2 and converted by end of same yr.

When I do the switch ( T2 to T1), I submitted my payslip, bank statements only. I didn't bother about NI contribution; even I was not aware of NI at that time!

I discussed with one of friend and heard Group NI. When I leave the company and asked for P45, they refused to provide. I checked with local HMRC office and realized there should be NI / Group NI payed by Foreign companies in UK and you have full right to ask for the details. Also they mentioned, if they refused to give details, you can sue them with help of HMRC!

Now a days, UKBA strict their policies and looking for Reasons to reject! So... fingers crossed.

RW.

[bluebug]

If you take an assignment with a foreign company and they pay you in your bank in UK then its your duty to pay tax and NI not a foreign company since foreign company dont come under HMRC rules and they are operating under Indian Tax rules.

Nil NI contribution means you are evading it and a clear reason for your visa refusal.

You better register for self employed asap and pay class 2 NI.

The reason behind that is you are working in UK and took a project with an indian company to execute it so you are self employed in UK but employed in India.

Hope it clarify

[geriatrix]

OP, ignore bluebug's response above.