How to pay tax: Non-EU national, working remotely

Non-EU national, working remotely for UK company - is it possible for me to pay tax in the UK?

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Hi there, 

I would really appreciate any advice anyone could give as I have a rather confusing question about where I can/should pay tax.

I'll try to keep this is as a concise as possible.

I'm currently a non-EU national working in the UK, on a Tier 2 General working visa, for a UK company. I have a UK bank account and an NI number

My partner is an official with the FCO and is being posted to India. I will be going too which means I will lose my tier 2 visa due to being outside of the UK. No problem there However my company wishes me to work remotely which I would like to do too. 

I want to know where I should pay tax on this remote work. Under the terms of my visa as a spouse of an official, I cannot work in India and therefore cannot pay tax on any income. Similarly as I don't have a right to work in the UK I don't see how I can pay tax there. I presume in theory that I could register to pay tax in my home country but I very much want to avoid this.

I'm very keen to ensure my tax affairs are in order and so I would willingly pay my tax to HMRC so my question would be: Can I choose to pay tax in the UK on this work, even though I have no right to work here? If so, how would I do this?

In the future we expect to return on a spousal visa (we never applied previously as I have always been sponsored for tier 2) so I want to ensure all my tax affairs are in order.

Thank you for any help and please ask if you require further clarity on this bizarre situation.

Thank you, 

Phil

Replies (6)

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By Tim Vane
20th Jan 2019 01:25

So you want to ensure your tax affairs are in order while you are working illegally outside the terms of your visa? Do you think that's going to be possible? It may well be, but the terms and conditions of this website expressly forbid posters from helping you commit such illegal activity.

I also suggest that should your activities be discovered, your partner might find themselves no longer working for the FCO.

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Replying to Tim Vane:
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By Fireman_ham
20th Jan 2019 02:11

Sorry - you have misunderstood and perhaps I should have been clearer.

There's absolutely nothing illegal here - I would be a remote worker outside of the UK, doing freelance work for a UK company, which does not require a visa. At the same time, I'm permitted to work remotely during my partner's posting, provided my work's activities are not related to the country of the posting (they would solely concern the UK) but my visa does not allow me to register for social security/income tax. Typically if I was a British spouse, I would retain residency in the UK (as my partner does during the duration of the posting) and any income earned in this period would be taxable there.

Therefore my only question is can tax still be paid in the UK in my case?

Thank you

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Replying to Fireman_ham:
By Tim Vane
20th Jan 2019 02:56

That's not my understanding, although I admit I am a little rusty as it's been a few years since I dealt with such a situation. My understanding is that you cannot work for a UK company without a visa unless you are resident outside the UK, in which case for UK tax purposes you will be paid gross of NI (after a certain time) and tax. So the UK side is fine and no tax to pay. However, you will, presumably, be resident in India and working for a foreign company (the UK company). India allows you to work for a foreign company, but specifically not while you are resident in India, unless either you have a working visa, or that foreign company is an NGO or you are a subcontracted intern of an Indian company.

So, under UK rules you must be non-resident and under Indian rules you must have a visa. The point you may be missing is that the "freelance" aspect is a red-herring - because you are currently an employee of the UK company you cannot suddenly switch the status of that employment by pretending it is something else - for Indian tax purposes you will be deemed an employee of the company since that is the reality of the arrangement. As I say, the rules may have changed but that is the way I see it. Essentially, you cannot continue to work for the UK company as things stand.

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By Fireman_ham
20th Jan 2019 05:19

Many thanks for taking the time to answer.

Again, I should of been clearer. A couple of points:

First, we will be on diplomatic visas which do not include residency - the right of free entry but of little else. As I say, in my partner's case, officials actually remain resident in the UK for the duration of the posting (all confirmed by FCO so fully aware of our activities :) ) This cannot apply to me as when I lose my tier 2 visa I can no longer be resident in the UK. Residency will therefore transfer to my home country but I was wishing to know if I can continue pay tax in the UK as a non-resident and with no legal right to work here.

Second, I will no longer be an employee of the UK company - when I lose my tier 2 sponsorship I lose my post and all other benefits as an employee: contract, payroll, IT, annual/sick leave, NI contributions. The company wants to hire me as something akin to a self employed consultant - paying me a gross sum for agreed pieces of work with any taxation up to me to sort. I don't think this is pretending anything - it is a clear change of the relationship, isn't it?

Thanks again

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By Matrix
20th Jan 2019 06:41

Tax is not the issue. You are not permitted to work in India which is what you will be doing if you accept the remote working.

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By Tim Vane
20th Jan 2019 10:47

Change of relationship? Pull the other one.

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