Tier 2 to Tier 1 (G) question

[antouk]

My friend applied for Tier 1(G) from tier 2 (intra company tranfer) and got it last month. So far NI and taxes related info are not disclosed on his salary slips. My questions are :

1. Will the company pay NI for T2 intracompany transfer visas?
2. Will there be any concessions in tax from the government for this category?
3. Will there be any change in tax and NI after this visa switch?
4. Should he inform his employer about the change in visa ?

Thanks in advance.

[geriatrix]

It is actually a NI/Tax query rather than a Tier 1 / Tier 2 query.

As per my understanding, the amount of NI contributions / income tax do not depend on the immigration status of the person but on the earnings / income of the individual in this country!
1. Overseas companies classify monies paid to employees in ways that can save them from paying taxes in the foreign country. Whether a company should be paying and deducting NI for an employee depends on how they classify the individual's income in UK to HMRC/relevant UK dept.
2. As mentioned, immigration category here does not determine NI/tax hence I do not think there should be a reason for any concessions.
3. Don't think so, unless the employer decides to re-classify the employee's earnings.
4. The employer must inform UKBA when the sponsorship ends. See Your sponsor's reporting duties.


regards

[antouk]

Thanks for your answers sushdmehta.