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How UK taxation applies to Tier 1 (General) Visa Holders?

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rohitktm
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Posts: 119
Joined: Mon Jul 27, 2009 10:05 am

How UK taxation applies to Tier 1 (General) Visa Holders?

Post by rohitktm » Thu Jan 21, 2010 3:17 pm

I have small query regarding taxation system in UK. I used online tax calculate and it showed me following results.

Annual Gross pay - £25,000.00
Income tax - £3,793.0
National Insurance - £2,149.40
Net pay - £19,057.60

My questions are:

1. If the employee is in Tier 1 (General) visa, does he/she is liable to pay National Insurance. As I have understood, national insurance pay goes to non-employment fund. Since Tier 1 (General) visa holders are not eligible to claim for non-employment fund, do they actually have to pay National Insurance like British citizens or someone with permanent residency of UK?
2. If the husband is working and wife is not working, will the husband get any tax benefits?
3. If the person receives annual bonus of £ 5,000 at the end of first year. Will the bonus taxable as salary?
I will sincerely appreciate your reply.
Thanks.
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Vanadil
Senior Member
Posts: 526
Joined: Wed Oct 29, 2008 11:58 am
Location: London, UK

Post by Vanadil » Thu Jan 21, 2010 3:24 pm

Unfortuantley...

1. Yes you have to pay it regardless

2. Not that I'm aware of no. This is why you must prove the maintainence requirement when applying for the Teir 1 (HSMP)

3. It will be taxed as it would still come under the PAYE system.


Sorry :cry:
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rohitktm
Member
Posts: 119
Joined: Mon Jul 27, 2009 10:05 am

Post by rohitktm » Thu Jan 21, 2010 3:43 pm

Vanadil,
thanks for your reply. I sincerely appreciate it.
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geriatrix
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Location: does it matter?
United Kingdom

Post by geriatrix » Fri Jan 22, 2010 5:40 am

Please don't make multiple posts on the same topic.

regards
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Dr Logic
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Posts: 159
Joined: Tue Jan 19, 2010 6:02 pm

Re: How UK taxation applies to Tier 1 (General) Visa Holders

Post by Dr Logic » Fri Feb 05, 2010 12:18 am

rohitktm wrote:I have small query regarding taxation system in UK. I used online tax calculate and it showed me following results.

Annual Gross pay - £25,000.00
Income tax - £3,793.0
National Insurance - £2,149.40
Net pay - £19,057.60

Thanks.
Correct calculation year 2009/2010 is as follows:

Annual Gross pay - £25,000.00
Income tax ( PAYE ) - £3705.00
National Insurance ( Employee Contribution ) - £2121.35
Net pay - £19,173.65

Please note your Employer ( Company, where you work ) will also pay National Insurance onbehalf of you. Its £2668.48.

Tax free Allowances is £6,475.00.
Real Eyes Realize Real Lies....
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Dr Logic
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Posts: 159
Joined: Tue Jan 19, 2010 6:02 pm

Re: How UK taxation applies to Tier 1 (General) Visa Holders

Post by Dr Logic » Fri Feb 05, 2010 12:21 am

rohitktm wrote: 3. If the person receives annual bonus of £ 5,000 at the end of first year. Will the bonus taxable as salary?

Yes
Real Eyes Realize Real Lies....
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