Possible Tax Situation

[x5x3]

I am currently a UK resident and employed by a UK company and pay tax here.

I may be about to join a German company, but remain in the UK. Therefore they would pay me in Euros plus I suspect tax would be deducted at source.

Does anyone have any ideas on how this would work? I can see it ending up with me paying tax twice and then taking ages to get it sorted out?

thanks in advance.

[Eric Mc]

You will be a UK tax resident employee working in the UK so will therefore be subject to UK Income Tax.

Therefore, your salary should still be paid to you following deduction of UK PAYE and Class 1 NI, just as it would be if teh employer was based in the UK. The German company may already have a UK PAYE agent operating its UK PAYE for it. If it doesn't have one at the moment, it should set one up so that your salary can be handled properly.

There should be no German tax deductions.

[x5x3]

Eric Mc said:

You will be a UK tax resident employee working in the UK so will therefore be subject to UK Income Tax.

Therefore, your salary should still be paid to you following deduction of UK PAYE and Class 1 NI, just as it would be if teh employer was based in the UK. The German company may already have a UK PAYE agent operating its UK PAYE for it. If it doesn't have one at the moment, it should set one up so that your salary can be handled properly.

There should be no German tax deductions.

Many thanks that is good to know, the German company does have a UK subsidiary (who I currently work for) so I assume that would be ok to be the agent?

[maturin23]

Unless you're planning to move to Germany any time soon I would strongly suggest fixing your salary in sterling immediately.

Having your liabilities and income in different currencies is not nice - I've been there!

[x5x3]

maturin23 said:

Unless you're planning to move to Germany any time soon I would strongly suggest fixing your salary in sterling immediately.

Having your liabilities and income in different currencies is not nice - I've been there!

thanks, I can appreciate your point but if this goes ahead then then being few £s worse off will be worth it!

[Kudos]

x5x3 said:

thanks, I can appreciate your point but if this goes ahead then then being few £s worse off will be worth it!

It's not a few pounds, it could work out to be quite a few %!

I used to work near the Irish/N Irish border and a lot of people work on one side, live on the other. For a while one side was doing well (35% difference), then the € moved, now they've had a 20% pay cut.