Working as a Consultant for Foreign Company and Salary credited to my account.

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This query is : Resolved

Quick Summary

If you're working as a consultant for a foreign company and receiving salary directly into your UK account, you'll likely need to pay tax. The key is to determine if the income should be declared as salary or business income (professional fees). This depends on your contractual agreement and whether you have an employee relationship with benefits like EPF, or if you operate as an independent consultant invoicing for services.

raj kumar

raj kumar (Querist)

05 July 2022 Working as a Consultant for Foreign Company and Salary credited to my account.

Do i need to pay tax?

Manish

Manish (Expert)

05 July 2022 Yes, it will be taxable.
First check the exact nature of income, and tax deducted on it.
Then check for DTAA and proceed accordingly.

raj kumar

raj kumar (Querist)

05 July 2022 Mr.Manish, Thanks for quick reply. The nature of income is salary/consultant fee. No tax deducted from that end. I will raise a monthly invoice, and against the amount will be credited to my account. In this scenario do i need to show income as ?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

07 July 2022 Declare it u/h PGBP as professional fees.

raj kumar

raj kumar (Querist)

08 July 2022 Why to declare as u/h PGBP as professional fees, when it is purely paid as salary

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 July 2022 Do you have any appointment letter, establishing your relation as employee?

raj kumar

raj kumar (Querist)

08 July 2022 Yes, an an Employee and even have NDA

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 July 2022 Then why you need to raise bill every month?

raj kumar

raj kumar (Querist)

08 July 2022 I have a Consultant agreement so

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 July 2022 So....
Do you understand difference between an employee and a consultant?

raj kumar

raj kumar (Querist)

08 July 2022 Employee will be on rolls and get all EPF, Medical LTA benefits and Where as consultant will work and raise an invoice on monthly basis for the services delivered.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 July 2022 So..
how can you be called an Employee of the company?

CA Puja Sharma

CA Puja Sharma (Expert)

08 July 2022 If you are on payroll then treat the amount as alary
If every month you are raising bills and receiving the fees then treat as business income.

raj kumar

raj kumar (Querist)

08 July 2022 @ Sharma Ji , Thank you. So business income is taxable as per what slabs.

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