Working Abroad in Germany for UK Employed Tax Payer

SimonNeil

I currently have a UK permanent employment contract, am paid my salary into a UK bank account, and pay taxes in the UK. This will continue even though soon I will be on secondment to Germany working from Germany traveling around Europe for six to eight months. Will my UK tax situation change and will I need to pay taxes in Germany even though I will not be earning money / getting paid in Germany? Many Thanks for advice and guidance.

Spidernick

You will remain UK-tax resident, so liable to tax on your UK earnings. It is almost certain that German taxes will be payable as well, but you need to speak to your employer around this, as they should have advisers in both the UK and Germany to assist you, who can tell you how things will work in both countries. If they don't then you need to ask them why, as there are a number of tax and social security issues to consider and in a worse-case scenario you would have tax withholding in both countries (leaving you with very little net pay) and then having to wait months to get relief in the UK for German taxes paid.