PAYE or Self Assesment or something else

mattrobbo99

I've been employed by a German company for 10 years and am a higher rate tax payer. The company is not registered in UK and it's only me working for them in UK. They are a medium sized company (turnover around £35m) and they pay my gross salary into my bank account each month.
In UK I'mset upas an employer in my own name and also the employee. So I pay PAYE tax just like a normal employed person in UK would, but I have to make the payments myself via a bank transfer direct to inland revenue. My empolyer in Germany also pays me extra to cover the employer part of the NI contributions. Each year i get my P60, so everything is above board and correct.
As far as mortgage companies have been concerned, I've always been treated as though I'm employed and have given 3 years P60 and a copy of my employment contract. So each year I pay my higher rate tax, my employer and employee NI contributions.
Is there a "more efficient" way of paying my taxes to save any money but in an ethical and legal way? Would I make savings if I declared myself self employed? I've always been hesitant to do this as it might affect my state pension and ability to change mortgage provider.

Laurajo_2

Employment or self employment is a question of fact, not a choice and I suspect, if you kept your current work contract, it would be difficult to explain why you are suddenly self employed.

mattrobbo99

Yes and no plus be my non expert opinion.
I'm not paid by a company in UK so they are not liable to pay UK taxes.
But there is clearly no obvious answer so I'm happy to continue paying as I am. Thanks

zygurat789

You seem to be confused.
From what you have posted it would seem that
1 You are employed by your own company which is resident in the UK, is this limited?
2. You are NOT employed by a German company.

The comopany you own operates as a consultant or suchlike for a German company and receives a fee for doing this.
Does this company submit accounts?

mattrobbo99

It's a bit of a unique situation which is hard for me to explain properly. After countless conversations with the Inland Revenue 10 years ago they were equally perplexed and this is how it ended up being set up.
I'm employed by the German Company which is not registered in UK so they pay my gross salary. For tax purposes in UK. So I'm registered in UK as an employer of myself. So I pay employers NI, employees NI and PAYE tax that covers one person, myself. I pay everything monthly and also make the electronic submission direct to IR as is now required and submit my figures each year to generate my P60. I do nothing else and don't have a limited company.
Apologies, I hope I'm explaining myself properly as I'm really not a specialist in this area
Is there an income limit where I'd have to be a limited company?

zygurat789

mattrobbo99 wrote: »

It's a bit of a unique situation which is hard for me to explain properly. After countless conversations with the Inland Revenue 10 years ago they were equally perplexed and this is how it ended up being set up.
I'm employed by the German Company which is not registered in UK so they pay my gross salary. For tax purposes in UK. So I'm registered in UK as an employer of myself. So I pay employers NI, employees NI and PAYE tax that covers one person, myself. I pay everything monthly and also make the electronic submission direct to IR as is now required and submit my figures each year to generate my P60. I do nothing else and don't have a limited company.
Apologies, I hope I'm explaining myself properly as I'm really not a specialist in this area
Is there an income limit where I'd have to be a limited company?

So, precisely, what is the name on the PAYE letters/notifications./scheme?

mattrobbo99

Just my name

zygurat789

mattrobbo99 wrote: »

Just my name

So you are the employer and you employ yourself.

Methinks HMRC have bent a few rules to get some tax in.
Maybe some ex revenue employees will see this and tell you what has happened. If it was me I would ring HMRC and ask why.

jimmo

zygurat789 wrote: »

So you are the employer and you employ yourself.

Methinks HMRC have bent a few rules to get some tax in.

I don't think so but I only ever dealt with this sort of problem in training many years ago. These seem to be the basics. http://www.hmrc.gov.uk/manuals/pommanual/PAYE75001.htm
http://www.hmrc.gov.uk/manuals/pommanual/PAYE20100.htm

mattrobbo99

From my point if view is it a good thing or a bad thing?