overseas earnings for ILR

[ofn2002]

Hi! I am on T1G visa and my ILR is due in early 2018. I just got a new job offer. The job is UK based however the company required me to have the contract signed in the Headquarters overseas and my first year will be paid/processed at the HQ overseas as well. Salary will be paid in UK on the second year.

As the salary will be paid overseas that there will be no UK tax record. In this case, can this type of overseas salary be counted as earnings for ILR especially under the current immigration climate?

Any suggestions to tackle this?

[CR001]

You have to pay tax in the country where the work is done, i.e. you are in the UK, you have to pay tax here. You will have to declare this to HMRC.

I don't know why people choose to complicate things like this when on an immigration journey, particularly in a visa category like Tier 1 G that is heavily scrutinised at ILR point by HO and where there have been many ILR refusals due to tax issues in recent months.

[ofn2002]

You have to pay tax in the country where the work is done, i.e. you are in the UK, you have to pay tax here. You will have to declare this to HMRC.

I don't know why people choose to complicate things like this when on an immigration journey, particularly in a visa category like Tier 1 G that is heavily scrutinised at ILR point by HO and where there have been many ILR refusals due to tax issues in recent months.

Thanks for your reply. I do not to complicate things. It is the hiring company's policy to hire UK passport holders in UK and non-UK passport holders outside the country even though we do not need sponsor to work in the UK. After we join their overseas HQ, we will be sent from there overseas HQ to work in UK and hence the first year salary is paid in overseas HQ country. On the second year, salary will be processed in UK with all tax NI pension stuff paid here.

In this case, does it mean if I join the company and the first year salary will not be counted as ILR earnings?

[CR001]

I would question why a company has such a ridiculous policy. You have the right to be employed and work in the UK with your valid visa. I bet you there is something they are trying to avoid or a loophole they are exploiting. I would not risk such a setup.

Your choice.

You will have to declare 1 years salary to HMRC and pay any tax on it that is due for it to count.

[ofn2002]

I would question why a company has such a ridiculous policy. You have the right to be employed and work in the UK with your valid visa. I bet you there is something they are trying to avoid or a loophole they are exploiting. I would not risk such a setup.

Your choice.

You will have to declare 1 years salary to HMRC and pay any tax on it that is due for it to count.

Well it is a large and decent overseas investor in the UK with about 50:50 UK and foreign employees. It is a big brand instead of a doggy company. According to them, it is their agreement between the Home Office and them to hire UK nationals for UK based positions.

[CR001]

Agreement with HO??? Is that what they told you. Sounds suspicious that a 'big brand' will make such an agreement with an immigration arm of government. Such 'big brand' companies would usually prefer to be 'Tier 2 A rated sponsor', not be restricted to only employ BC's.

So they want to employ you but don't want you on the UK payroll as you are not British, so they offer you an 'overseas' contract and 'overseas' pay but you work from the UK (home or hot desk at office or wherever). See, a loophole.

HMRC will love this.

[ofn2002]

Agreement with HO??? Is that what they told you. Sounds suspicious that a 'big brand' will make such an agreement with an immigration arm of government. Such 'big brand' companies would usually prefer to be 'Tier 2 A rated sponsor', not be restricted to only employ BC's.

So they want to employ you but don't want you on the UK payroll as you are not British, so they offer you an 'overseas' contract and 'overseas' pay but you work from the UK (home or hot desk at office or wherever). See, a loophole.

HMRC will love this.

It is a T2 sponsor. Overseas pay is only on year one and UK payroll will be on year two onwards. They will apply for T2 visa for overseas staff to work in UK. I do not think it is for tax reason. Just their company policy. Year 1 tax will be paid overseas jurisdictions and year 2 will be paid in UK.

[CR001]

It doesn't make sense, that is what I am saying.

Good luck.

[noajthan]

RLMT for Tier2?

[CR001]

RLMT for Tier2?

OP is on Tier 1 G, so RLMT is not applicable.

[noajthan]

RLMT for Tier2?

OP is on Tier 1 G, so RLMT is not applicable.

Just confusing to see reference to T2 sponsor.

[CR001]

RLMT for Tier2?

OP is on Tier 1 G, so RLMT is not applicable.

Just confusing to see reference to T2 sponsor.

I would be concerned though if a Tier 2 Sponsor is somehow jimmying the system and employing people who are in the UK but 'not paid/employed' on paper in the UK for the first year.

[Wanderer]

Consensus is correct, tax is due where the work is done, simple as.

HO doesn't do 'deals' and neither does HMRC who will rip a new one if you try and wing this.

If the Co. is a T2 sponsor it will have PAYE in UK so whats their issue? Sounds like tax evasion to me and believe me if you get involved in that, kiss goodbye to ILR...