Hello guys,
i am German citizen and working for a German authority. Got accepted now for a job in the UK for a UK authority. Moving to the UK in October and working there 100% (full time). My current employer asked me if I will still working for them remotely from the UK just like 20% next to my UK job.
So summarised: living and working in the UK and while I am in the UK working remotely for my current/old employee in Germany.
Does anybody know anything regarding taxing? Is there something I should be aware of? Any problems?
many thanks in advance!
Max
-@maximax90
Hi and welcome to the Forum.
First off, I'm not a tax or financial advisor. What I say below is the results of what others have posted on here, or what has happened to me.
In general, where you are assessed for taxes is decided by where you are resident for more than 183 days in any tax year, so if you reside in the UK, you would normally be assessed by HMRC on your worldwide income, that assessment would normally begin on the day you take up UK residence, not 183 days later. This matter is normally detailed in tax treaties between specific countries, all of these are available on the UK Gov website; this will take you straight to it; Article 14 of the 2010 treaty deals with income taxes. I haven't read them in detail, but if your tax matters are complicated, my advice would be to speak to a qualified tax adviser and check out the Services link at the top of this page to see if any are advertising their services.
There is one word you used a couple of times "authority" that gives me a reason to mention something; I do know that if you are working for the German Government (i.e. a civil servant, or NATO military) that the German Government would normally retain the right to keep your tax, pensions and other social matters in Germany. If this is not the case, then your tax matters will be assessed by HMRC in the UK, you will need a UK National Insurance number; details of how to do this are also on the UK Gov website and this will take you straight to it.
Your UK taxes will be deducted at source (they call it PAYE, or Pay As You Earn), and you will initially be given an emergency tax code until your circumstances are settled (normally your employer notifies HMRC of your new payroll details). You will have to declare your other worldwide income to HMRC and it will be treated and assessed by the UK.
One other matter, you may wish to discuss this with your new employer as they could see a conflict of interest (they may want you to work overtime when you may not be able to because of your work for your previous employer); it would be embarrassing for all if it were discovered sometime in the future after you have moved to the UK. I know that my ex-employer (a multi-national) had some issues working around the Working Time Directive when US staff were moved to the UK.
I hope this helps.
Cynic
º£½ÇÂÒÂ× Team