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Per Diem and Citizenship

Posted: Wed Feb 10, 2016 10:38 am
by wildstreak
Hello All,

I have a query regarding my wife's citizenship application.

Bit of a background first:
My wife came to the UK in 2007 on deputation from an Indian company. She worked here for ~12 months and received a salary from the company. However at that time no taxes or NI was paid by the Indian company. She was here on a WP which states that she will be paid a salary of XXX. She then left the UK in 2008.

In 2010, my wife and I both came to the UK and she has been on dependent visas till 2015, when she got ILR in Feb 2015. Throughout this period she has been working and has been paying taxes and NI. She is now about to apply for her citizenhip in Feb 2016 based on 5+1 years residence.

Problem:
In the AN form it requires her to enter employment history for the last 10 years. This means that we would need to include her time when she was working in the UK in 2007. However if home office will try to check her tax and NI records for this period, they will not find it and I am a bit worried that they may construe it as not paying taxes and therefore not meeting the good character requirement. Of course we do not want to hide the information regarding her employment in 2007, which will be considered as deception (rightly).

Can the gurus please advise as to how we manage this situation?

As always really appreciate all your inputs and help.

Thank you.

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 10:40 am
by CR001
Was she paid in the UK or in India?

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 10:50 am
by noajthan
wildstreak wrote:Hello All,
...

Problem:
In the AN form it requires her to enter employment history for the last 10 years. This means that we would need to include her time when she was working in the UK in 2007. However if home office will try to check her tax and NI records for this period, they will not find it and I am a bit worried that they may construe it as not paying taxes and therefore not meeting the good character requirement. Of course we do not want to hide the information regarding her employment in 2007, which will be considered as deception (rightly).

Can the gurus please advise as to how we manage this situation?

As always really appreciate all your inputs and help.

Thank you.
Clearly you need to declare employment history in UK.
And sign the legally-binding Declaration vouching for the completeness & veracity of the application.

If you feel any aspect needs explanation you may add a cogent explanatory paragraph or two in the 'additional/futher info' section of the AN application form.

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 10:54 am
by wildstreak
Many thanks for your prompt responses.

@CR001: She was paid in the UK

@noajthan: You are absolutely right. There is no intention to hide any information. What I am confused is about the company not paying taxes and NI at that time for which my wife may get ppenalized now. Just to note she did not have an NI number as well at that time.

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 11:19 am
by noajthan
wildstreak wrote:@noajthan: You are absolutely right. There is no intention to hide any information. What I am confused is about the company not paying taxes and NI at that time for which my wife may get ppenalized now. Just to note she did not have an NI number as well at that time.
Understood.
The company seems to have been indulging in some dodgy practices so most unfortunate if it now reflects on your good wife.

As suggested, you can make the best of it in the 'additional info' section. Then it's in caseworker's hands.

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 12:13 pm
by haiksuresh
Hi ,
As per my knowledge it was fine. during 2007 lot of companies were doing the same thing i.e the will pay only per Diem in UK and Indian salary. It should be fine i believe.

But you must declared working history in the application. if possible keep payslips and other evidences, just for reference.

Thanks,
Suresh

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 12:51 pm
by wildstreak
Thanks a lot Suresh.

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 12:55 pm
by Wanderer
Golden rule of taxation; tax is due where the work is done.

Re: Per Diem and Citizenship

Posted: Wed Feb 10, 2016 1:25 pm
by ohara
Wanderer wrote:Golden rule of taxation; tax is due where the work is done.
Unless you are an American citizen :)

Re: Per Diem and Citizenship

Posted: Thu Feb 11, 2016 12:12 am
by ScopeD
Wanderer wrote:Golden rule of taxation; tax is due where the work is done.
Not necessarily true. In some durisdictions, income earned during a period of temporary absence (and temporary absence can be defined in some places as anything under 180 days) will be taxable. Of course there may be some double taxation agreements existing between countries, in which case you may be subject to the difference between what you paid in the host country and what you would have paid in your home country.

Re: Per Diem and Citizenship

Posted: Fri Jun 17, 2016 2:53 pm
by wildstreak
Hi,

Just as an update, my wife's application got approved today. We did declare in the form that she worked in the UK in 2007 but did not provide any explanation on NI/tax etc. I guessed that if they need to know more they can ask HMRC.