Overview

A number of employers that bring employees to the UK on a work permit, do so in a tax efficient way. This is especially the case for a number of large Indian companies, such as TCS. This usually means that the individual continues to be paid their Indian salary, whilst at the same time receiving a per diem allowance in the UK. Whilst this is completely legal, it can make applications for the Tier 1 more complicated.

How Earnings Should be Calculated

When considering your earnings, you should always consider the country in which you are working. For example if you are working in India, your salary will be uplifted by 5.3 times, whereas if you are working in the UK you will not receive any uplift at all. When considering per diem earnings, this rule also applies. Therefore to equate your earnings you should calculate the followings:

1. Convert your Indian salary into GBP

2. Add your Indian salary to your UK allowance

3. The total of the two is the earnings that the Home Office will recognise

Points will then be awarded on exactly the same basis as for an employee who has received just a UK salary. Please note the Indian salary cannot be uplifted as the country of earnings is the UK and not India.

Applicants who qualify should note that it will be necessary to account for both parts of their earnings through payslips, bank statements, etc. Furthermore should the UK be the country in which you have spent the most time, you will also be eligible for a further 5 bonus points for UK experience.

If you need more information or help establishing how much you have earned over the last 12 months, please feel free to contact us on 0203 178 2048.