Tax and working abroad

NorwichMan

Sam_666 said:

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!

Thank you @sam_666 the EU passport is not a problem, and I'm ready to receive pay in Euros.

I'm continuing to talk with the potential employer and reading some of the info in the links people shared above.

Bookworm105

Sam_666 said:

Why would you need solicitor or tax accountant when all info is available on web, in English.

then provide the links
I note he is UK (tax) resident working for a non UK (resident) company

MacPingu1986

Sam_666 said:

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.

Taxation of employment income in the UK is very much not just a personal issue. Even in a solely UK context employers are closely involved - eg: even for my relatively simple affairs they have my tax code and they deduct and pay income tax and national insurance on my behalf to HMRC.

When you add another country into the mix things can become much more complicated, as others have advised key questions as a starter that all involve the employer:

• Will the employer be setting up a UK payroll?
• Will the employer be deducting any German taxes? Is there any scope for the employer to apply for an exemption for these deductions?
• How will the employer handle pension contributions? If German pension contributions do not meet the criteria to be treated from a tax perspective as pension contributions in the UK, then how will the employer handle this?

Albermarle

MacPingu1986 said:

Sam_666 said:

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.

Taxation of employment income in the UK is very much not just a personal issue. Even in a solely UK context employers are closely involved - eg: even for my relatively simple affairs they have my tax code and they deduct and pay income tax and national insurance on my behalf to HMRC.

When you add another country into the mix things can become much more complicated, as others have advised key questions as a starter that all involve the employer:

• Will the employer be setting up a UK payroll?
• Will the employer be deducting any German taxes? Is there any scope for the employer to apply for an exemption for these deductions?
• How will the employer handle pension contributions? If German pension contributions do not meet the criteria to be treated from a tax perspective as pension contributions in the UK, then how will the employer handle this?

I think if the employer sets up a UK payroll, the other problems should go away.
The employer would normally just send money to whoever is operating the payroll.
The latter would then pay the employee minus tax and NI, and contribute a suitable amount to a UK personal pension in the name of the employee.
In my last job the employer was in Belgium, and this is how they paid their salespeople based in other countries ( UK, Germany, Italy etc)
They all paid taxes locally and participated in local pension schemes. Nobody outside Belgium participated in the main Belgian pension scheme. 

MacPingu1986

Albermarle said:

MacPingu1986 said:

Sam_666 said:

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.

Taxation of employment income in the UK is very much not just a personal issue. Even in a solely UK context employers are closely involved - eg: even for my relatively simple affairs they have my tax code and they deduct and pay income tax and national insurance on my behalf to HMRC.

When you add another country into the mix things can become much more complicated, as others have advised key questions as a starter that all involve the employer:

• Will the employer be setting up a UK payroll?
• Will the employer be deducting any German taxes? Is there any scope for the employer to apply for an exemption for these deductions?
• How will the employer handle pension contributions? If German pension contributions do not meet the criteria to be treated from a tax perspective as pension contributions in the UK, then how will the employer handle this?

I think if the employer sets up a UK payroll, the other problems should go away.
The employer would normally just send money to whoever is operating the payroll.
The latter would then pay the employee minus tax and NI, and contribute a suitable amount to a UK personal pension in the name of the employee.
In my last job the employer was in Belgium, and this is how they paid their salespeople based in other countries ( UK, Germany, Italy etc)
They all paid taxes locally and participated in local pension schemes. Nobody outside Belgium participated in the main Belgian pension scheme. 

Agreed if the UK payroll is set up it sorts most of the issues - I was just making the point to Sam666 why the employers engagement when you have cross jurisdictional issues with tax residency and employment income was important!

(and re the pension my thoughts were more if the employer can't pay into the German pension, they need to be engaged with to agree some other form of benefit or contribution)

Sam_666

MacPingu1986 said:

Sam_666 said:

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.

Taxation of employment income in the UK is very much not just a personal issue. Even in a solely UK context employers are closely involved - eg: even for my relatively simple affairs they have my tax code and they deduct and pay income tax and national insurance on my behalf to HMRC.

When you add another country into the mix things can become much more complicated, as others have advised key questions as a starter that all involve the employer:

• Will the employer be setting up a UK payroll?
• Will the employer be deducting any German taxes? Is there any scope for the employer to apply for an exemption for these deductions?
• How will the employer handle pension contributions? If German pension contributions do not meet the criteria to be treated from a tax perspective as pension contributions in the UK, then how will the employer handle this?

Personal taxation is just thay, personal. No employer gives a damn how you arrange your taxes or how much or little you pay. All they care about is tax  code from hmrc,  so that they deduct  correct  money.
Dont trust me? Try asking your employer about your personal tax affairs.

All those question would have been in job describtion or discussed durring interview. I bet he was also asked Q about passport/work permit  too.

Bookworm105

Sam_666 said:

Bookworm105 said:

Sam_666 said:

Why would you need solicitor or tax accountant when all info is available on web, in English.

then provide the links
I note he is UK (tax) resident working for a non UK (resident) company

Eh? How about google for  starters? Spoonfeeding time?

@sam_666 when people post on here they offer comments based on evidence that relates to the question asked. Your "contribution" to this thread is unsupported and, in reality, so far off the mark as to be worthless given the question is about a resident & non resident scenario. You either know nothing or do not understand the question so your comments are wrong.

employees (and employers) do give a damn if they could face HMRC penalties for failure to operate PAYE when UK resident - a fact you have misunderstood

sheramber

Sam_666 said:

MacPingu1986 said:

Sam_666 said:

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.

Taxation of employment income in the UK is very much not just a personal issue. Even in a solely UK context employers are closely involved - eg: even for my relatively simple affairs they have my tax code and they deduct and pay income tax and national insurance on my behalf to HMRC.

When you add another country into the mix things can become much more complicated, as others have advised key questions as a starter that all involve the employer:

• Will the employer be setting up a UK payroll?
• Will the employer be deducting any German taxes? Is there any scope for the employer to apply for an exemption for these deductions?
• How will the employer handle pension contributions? If German pension contributions do not meet the criteria to be treated from a tax perspective as pension contributions in the UK, then how will the employer handle this?

Personal taxation is just thay, personal. No employer gives a damn how you arrange your taxes or how much or little you pay. All they care about is tax  code from hmrc,  so that they deduct  correct  money.
Dont trust me? Try asking your employer about your personal tax affairs.

All those question would have been in job describtion or discussed durring interview. I bet he was also asked Q about passport/work permit  too.

Were you party to what information the OP was given as you seem to think you know what he was told?

If they were discussed at the job interview why would the OP be asking on here?

He has explained that the firm have never had this situation. They have only dealt with German resident employees

They may not have anticipated  that a non resident person may apply for the job.

Understandably, the OP would like to know how his potential employer should deal with his tax affairs.

DBdoobydoo

Sam_666 said:

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!

Almost every statement in this post is utterly wrong.

The OP is going to be sat in the UK working remotely in Germany. They will be tax resident in the UK on a UK payroll with UK taxes/ social deductions deducted. The OP does not need a German bank account and German tax ID number.

The OP will be paid in GBP. They do not require a German work permit. Why on earth would they? They will be working in the UK.

DBdoobydoo

NorwichMan said:

Sam_666 said:

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!

Thank you @sam_666 the EU passport is not a problem, and I'm ready to receive pay in Euros.

I'm continuing to talk with the potential employer and reading some of the info in the links people shared above.

OP. You need to ignore @Sam_666 as every answer they have given is wrong.