Working abroad as self-employed - can I count earnings?

[katwmn6]

Hi everyone,

I have an urgent query - I just received an offer for a 9 week job in Asia. I'm self-employed (sole trader) on Tier 1 (General) and am applying for ILR in March 2014. I would be paid for this work in GBP, into my UK bank account.

As a self-employed person, can I use this income (earned while I was temporarily residing abroad) towards my income threshold?

I have 1 hour to respond to the job - any help would be great!

Many thanks!

[katwmn6]

10 minutes left to reply to offer - am searching through immigration rules & forum.

does anyone online right now know?

(thank you!!)

[katwmn6]

Hi everyone,

I accepted the job but am now a bit panicked. I can't find any evidence that earnings from SE for a job outside the UK will count for my ILR. I only took the job because I really need the income for my ILR earnings threshold.

Any guidance would be greatly appeciated. I am in the process of finding an immigration lawyer but I trust the gurus on this board more.

[vivdubes]

Hi,

I just happen to see this message and I feel it should be fine as long as the money is coming into UK account and is in GBP. In some cases even if it is not in GBP you can use the conversion rate of your earnings and as well.

[newbie_2013]

Hi,

I just happen to see this message and I feel it should be fine as long as the money is coming into UK account and is in GBP. In some cases even if it is not in GBP you can use the conversion rate of your earnings and as well.

i agree. Also the money doesnt always have to come into an UK account. But you do need to pay tax to HMRC for your overseas income (i am not sure how SE from overseas earings are dealt with by HMRC) so you will have proof from HMRC.

[TheGreenTea]

From UKBA website,
http://www.ukba.homeoffice.gov.uk/visas ... /earnings/

You can still claim points to apply for/ extend Tier 1 visa even when you earn overseas.
So I am guessing as long as your Tier 1 visa is valid (i.e. you are earning enough) you are fine with applying for ILR next year.

But do read how they convert the earnings into GBP:

How we convert your earnings into pounds sterling (GBP)

Earnings made overseas must be converted into pounds sterling so that we can assess them. The exchange rate we use is the one produced by OANDA.

You should use the closing spot exchange rate on the OANDA website on the last day of the period for which you have claimed earnings in that currency. You can find a link to the website on the right side of this page. It is an independent website, for which we are not responsible.
How we adjust overseas earnings

To reflect differences in income levels across the world, the income level required to score points varies depending on where you were working at the time you earned the money. We use a series of calculations (known as 'uplift ratios') to bring overseas salaries in line with the UK equivalents. The level of uplift we give depends on the average income in the country where you made the earnings. This calculation is made automatically using the points-based calculator, which you can find on the right of this page.

Table 2A of Appendix A (Attributes) of the Immigration Rules lists countries and the appropriate conversion rate, which you can find on the right of this page.

The country in which you have been working, rather than your nationality, determines the income bands against which we will assess the earnings.

Where you have earnings from more than one country, the points-based calculator will apply the appropriate uplift ratio for each country in which the relevant earnings were made, to provide a total that is equivalent to the UK value of earnings.

An uplift ratio will not be applied to any earnings made while you were in the UK working for an overseas company. If you are already in the UK under Tier 1 (General) and you are applying to extend your stay, you cannot claim uplift rations on any overseas earnings.

[katwmn6]

Hi TheGreenTea, thanks for your reply.

Unfortunately I cannot find any clear guidance on (1) working abroad for ILR, and (2) working abroad as self-employed for ILR.

My situation is similar to that of newbie_2013, except for the following 3 key points:
(1) I am self-employed;
(2) I will be earning GBP and be paid into a UK bank account;
(3) the client I am invoicing for the work is based in the UK.

If any gurus can tell me of any previous experience they have with any similar situation I would greatly, greatly appreciate it. I am due to fly out to start the job next week and I am struggling to find clear guidance. If I take this job and the income doesn't count towards my ILR, I will not be able to make up the shortfall in the UK in time.

[TheGreenTea]

katwmn6

1. I suggest calling UKBA

2. If you think logically about it:
- you are eligible to apply for ILR if you stayed lawfully in the county for 5 (work/spouse) or 10 years.
So, if your Tier 1 is valid through 5 years, you stayed here lawfully and therefore you are eligible to apply.
For you to have a valid Tier 1 , you need to have a certain annual income. The guidance for Tier 1 states that you can earn overseas, but the salary, if not in GBP, will be converted.

If you are paid in GBP and the client is UK based but required you to fly our for 9 weeks, this should not matter to UKBA! You have complied with your Tier 1 requirements.

[katwmn6]

FYI I sent a Freedom of Information request pertaining to my question and this is the response I received:

Dear Katwmn6,

Thank you for your enquiry regarding the rules for UK settlement relating to Tier 1 (General) and their previous earnings. Tier 1 (General) applicants can use earnings from overseas employment to claim points for previous earnings, This is regardless of whether or not the earnings are paid in GBP, and regardless of whether or not they are paid into a UK bank account. But they cannot claim the 5 bonus points for UK experience.

The rules state:

19 (f) (ii) If the earnings were made while the applicant was not in the UK, the evidence must come from an accountant or accountancy firm which meets the requirements in or appears on the list of full members given on the website of the International Federation of Accountants.

27. Earnings in a foreign currency will be converted to pound sterling (£) using the closing spot exchange rate for the last day of the period for which the applicant has claimed earnings in that currency.

29. The spot exchange rate which will be used is that which appears on www.oanda.com*

30. Where the previous earnings claimed are in different currencies, any foreign currencies will be converted before being added together, and then added to any UK earnings, to give a total amount.

UK experience: notes
31. Previous earnings will not be taken into account for the purpose of awarding points for UK experience if the applicant was not physically present in the UK at the time those earnings were made.

Applicants who claiming points for overseas earnings must be able to provide evidence that tax has been paid on those earnings to the relevant tax authority.

With regards to self-employment as a sole trader overseas; applicants must be able to provide evidence that they are registered as self-employed in the UK and that they were paying class 2 NI contributions during the period for which they are claiming points.

Please refer to paragraphs 19-19SD of the immigration rules.

If you need advice on making an application for settlement, please contact an OISC registered advisor http://oisc.homeoffice.gov.uk/

I trust this is helpful.
Ann

Settlement, Family and Nationality Operational Policy & Rules |Operational Systems Transformation | Home Office

I hope she knows what she's talking about.