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Where Taxpayers and Advisers Meet

Non UK resident NT tax code???

mervx
Posts:1
Joined:Wed Jun 14, 2017 3:56 pm
Non UK resident NT tax code???

Postby mervx » Wed Jun 14, 2017 4:00 pm

Hi!

I am a Colombian national married to a German citizen, we lived in London from 2014 to 2016 (2 years and a month) since I arrived in London I haved been working for an American Company with base in London, the first year I worked at the office and the second year due to medical reasons I worked from home.

Due to life circumstances I had to move to Germany with my wife and left the UK around July 2016, I continue working for the same company and they know I am based in Germany; I am still paying taxes and national insurance in the UK.

I was told by the HMRC chat that I need:
1st. to fill up the P85 form
2nd. send a letter requesting a NT tax code

My questions are:
1st. Being now a legal German resident and Colombian citizen, would I be at risk of getting denied to work for a UK company by the HMRC?
2nd. Would I get any tax refund for the year I have been out of the UK?
3rd. Would there be any incinvenience for my employer if I have an NT tax code?

If you can provide me with some answers and procedures to be done, I would really appreciate it.

Thank you so much for your attention and help.

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Non UK resident NT tax code???

Postby AmanSood » Thu Jun 15, 2017 9:04 am

Hi Mervx

Sorry to hear about the health issues and hope you are now fully on the mend!

From a tax perspective, broadly as you are now spending your time living and working in Germany, you would be considered German tax resident and taxable in Germany on your employment income. In addition, assuming you do not have any UK workdays, then you would not be taxable in the UK and you should apply for the NT code. I assume that your company does not have an office/subsidiary in Germany? If so, the Company really needs to determine whether they are still required to register with the German tax authorities and operate payroll tax withholding in Germany on your employment income.

From a social security perspective, you are paying 100% social security in the UK which again i'm not sure is correct (unless you are spending at least 25% of your working time in the UK). I think it's more likely the case that you should be paying social security in Germany.

So in response to your questions:
1st. Being now a legal German resident and Colombian citizen, would I be at risk of getting denied to work for a UK company by the HMRC? No you can still be employed by the UK company. But as mentioned above, your UK company may have some filing requirements in Germany.
2nd. Would I get any tax refund for the year I have been out of the UK? Yes from the point at which you left the UK. Complete the Form P85 and get a tax refund.
3rd. Would there be any incinvenience for my employer if I have an NT tax code? No this is standard operating procedure and is easy for the company to implement in the UK payroll.

I hope the above is helpful and I'm happy to have a call/meeting with your company as well to talk through this in further detail as they are likely to have the key tax withholding obligations in Germany.

Thanks

Aman
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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