Working for a UK company from India: The 6-month rule

Can you work for a UK company from India for 6 months? Learn about the 183-day tax rule, the 2026 Social Security Agreement, and the risks to your ILR.

IA

Indian Attorneys UK

· 3 min read

The rise of remote work has led many Indian professionals in the UK to ask a simple question: can I spend half the year working from home in India while keeping my UK job? In 2026, the answer is a cautious "yes," but only if you navigate a minefield of tax, social security, and employment laws.

At Indian Attorneys (UK), we see many NRIs unintentionally triggering massive tax bills by overstaying their "temporary" trips. Here is how to manage a 6-month remote stint without losing your UK status.

The 183-day tax threshold

The magic number for tax residency in 2026 remains 183 days. If you spend more than 183 days in India during a single financial year, you will likely be considered a tax resident of India. This means the Indian government can claim tax on your worldwide income, including the salary paid into your UK bank account.

If you stay under this limit, the UK-India Double Taxation Avoidance Agreement (DTAA) usually protects you. Under the Short-Term Employment clause, you should only pay tax in the country where you are resident, the UK. However, if you cross that 183-day line, you could end up paying tax in both countries and waiting months for a refund through a foreign tax credit.

The new 2026 Social Security Agreement

A major win for NRIs arrived in February 2026 with the signing of the UK-India Social Security Agreement. Previously, professionals working across borders often had to pay into both the UK National Insurance system and the Indian Employee Provident Fund (EPF).

Under the new 2026 rules, if you are sent to work in another country temporarily for up to 36 months, you only have to pay social security in one country. To benefit from this, you must apply for a Certificate of Coverage (CoC). This document proves you are still contributing to the UK system, exempting you and your employer from making EPF contributions in India during your stay.

Your employer’s "Permanent Establishment" risk

It isn't just your tax you have to worry about. If a UK company allows you to work from India for an extended period, the Indian authorities might argue that the company has a Permanent Establishment in India. This could lead to your employer being hit with Indian corporation tax on a portion of their profits.

Because of this risk, many UK firms now have strict 90-day or 180-day caps on working abroad. Before you book your flight, you must check your company’s internal remote work policy. In 2026, many employers require a formal Remote Work Agreement that specifically outlines your tax and data protection responsibilities while overseas.

Visa and residency traps

If you are in the UK on a Skilled Worker visa, a six-month absence is a major risk. To qualify for Indefinite Leave to Remain (ILR), you cannot be absent from the UK for more than 180 days in any 12-month period.

Spending exactly six months in India pushes you right to the edge of this limit. If your flight is delayed or you fall ill and can't travel back in time, you could reset your five-year clock to zero. The Home Office audit systems in 2026 are automated and link directly to flight manifests, so there is very little room for error or reasonable excuses.

Planning a long stay in India while keeping your UK job?

Don't risk your ILR or your tax status. We can review your remote work agreement to ensure you stay compliant on both sides of the border.

Book a remote work compliance auditSee the Remote-Worker ChecklistDownload our 2026 NRI Remote Work Guide
Important: This article is general information for the UK-based Indian community, correct to the best of our knowledge when published. It is not legal, tax or immigration advice. Rules change — speak to a qualified professional about your own circumstances. See our legal disclaimer.

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