Tax and working abroad

NorwichMan

I might accept a job (full time indefinite employment contract) in Germany, whilst continuing to live in the UK. Would work remotely where possible but have some semi regular travel to the office there. 

Unsure about whether I would have to pay tax etc in Germany or the UK, hopefully not both. 

Can anyone recommend a good law firm who I can approach to ask for advice on this?

DullGreyGuy

You need to speak to the company firstly to find out what they're intending to do regards taxation 

TheSpectator

Why would you need a law firm for a taxation matter?

Voyager2002

Have you asked the firm? Their HR department probably know the rules already.

MacPingu1986

Definitely speak to your employer to see what they are planning to do, how they will be managing payroll etc.. if this has come up before etc... Will you be an employee or a contractor?

As always the devil can be in the detail but some general principles which will usually apply to these sort of situations and may be helpful:

1. If you are continuing to live in the UK you will be UK tax resident. This means you will pay UK income tax and be liable to UK tax generally in respect of your income. The National Insurance position will be a little more complex and you and your employer may also be liable to pay UK National Insurance contributions - I would definitely ensure your employer has analyzed and assessed this part in particular.
2. Unless you spend a substantial amount of time in Germany you will probably not become tax resident in Germany and shouldn't have to pay the German equivalent of income tax. Again, I don't know what rules Germany operates regarding any payroll deductions for German tax but you'll need to thoroughly discuss this with your employer. If you do have to pay any German income tax or social security contributions you can usually claim these as a credit against any UK tax you have to pay.

They are not the easiest documents to read but the UK/Germany tax treaty will set out the position re double taxation and should entirely, or mostly, prevent double taxation from arising.

https://www.gov.uk/government/publications/germany-tax-treaties

Unfortunately all of this can be somewhat complicated! If you do need to take independent advice then you'd be looking to engage a tax advisor, rather than a lawyer.

NorwichMan

Thanks everyone. If I accept the job I will be an employee, the employer is not used to having people live outside Germany, they are set up to pay usual income taxes and related oncosts for German residents. I am talking to them but thought it might be wise to seek independent advice regarding any responsibilities and any options. Appreciate all the comments above.

Bookworm105

NorwichMan said:

Thanks everyone. If I accept the job I will be an employee, the employer is not used to having people live outside Germany, they are set up to pay usual income taxes and related oncosts for German residents. I am talking to them but thought it might be wise to seek independent advice regarding any responsibilities and any options. Appreciate all the comments above.

when talking to them make sure you cover the operation of a payroll as where an employer does not have a "base" in the UK, but has UK employees, then who runs the payroll to report and pay Tax to HMRC can be convoluted including you having to run your own payroll !

PAYE for overseas employers with no UK presence | dns accountants

Are you a UK employee with an overseas employer? Payroll, and when to use a DPNI scheme. - Gravita

Albermarle

Also, there is the issue of pensions, as the German system is totally different.

If you were registered as a UK employee, then NI would be paid, so no issue with building up state pension credits.
For a workplace pension, the employer would have to pay at least minimum auto enrolment contribution of 3% from them. From some experience , they might well be happy to pay more.
Practically it would be very easy to set up a UK based personal pension/SIPP for you,  that the employer ( and you ) could pay into.

NorwichMan

That's really helpful, thank you @Bookworm105 and @Albermarle

Sam_666

Some good points above about double taxation.
You will be paid by German firm, on German payroll and German taxes/ social deductions deducted.
You will also need German bank account and German tax ID number. You CANOT be paid in Germany without tax ID number.

Why would you need solicitor or tax accountant when all info is available on web, in English.
Did you relise you will be paid in Euros? Did you think about how will you get those Euros in GB bank account?
Do you have EU passport? Without EU passport you need German work permit!

Sam_666

DullGreyGuy said:

You need to speak to the company firstly to find out what they're intending to do regards taxation 

Why? Taxation is personal issue and no employer will advise on that, not even UK employer.
Try asking your own employer about your own peronal taxation and let us know what they said.